Study: Women face fewer barriers raising cash through crowdfunding

Is crowdfunding the next great emancipator for women in business?

August 18, 2014 18:58
1 minute read.

Some hard-line experts recommend banishing computers, cellphones, TVs and video games from a teen’s room.. (photo credit: SACRAMENTO BEE/MCT)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Is ‘crowdfunding’ the next great emancipator for women in business? A new study from the Hebrew University of Jerusalem shows that women who wished to raise capital fared better than men in crowdfunding – online platforms for raising small amounts of capital from multiple people.

Women, who according to international studies make up about a third of entrepreneurs in developing countries and about 40 percent in the US, often face funding barriers for their ventures.

Be the first to know - Join our Facebook page.

“Access to finance is repeatedly identified as a major constraint to women entrepreneurs,” the International Finance Corporation wrote in a 2011 report.

A 2012 study by online loan matchmaker Biz2Credit found that women were 15-20% less likely to get approved for small business loans.

The Hebrew University study by Dan Marom, Orly Sade, and UC Berkeley’s Alicia Robb, examined data from crowdfunding website Kickstarter, detailing $120 million of investments from April 2009 through March 2012, which included 13,533 entrepreneurs and 898,491 investors.

The study found that women hit their funding target 69.5% of the time, while men hit theirs only 61.4% of the time. Though men tended to seek higher amounts, the study found that “it was not the women’s more modest financial goals that accounted for their higher rate of success.”

One possible reason that women did better was an affinity for people to invest in projects by people of the same gender.


Women made up about 35% of the project leaders and 44% of the investors, and the researchers did indeed find a positive correlation between the gender of the project leader and investor.

Males invested in projects with female leads 23% of the time, even though female leads accounted for more than a third of the projects.

“These findings indicate that the increasing prevalence of crowdfunding platforms may lead to increased participation of women as investors and to an increase in the flow of capital to projects led by women,” said Sade

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The tallit (prayer shawl) is a customary Jewish prayer garment.
September 21, 2018
Uncovering the tallit, the long-standing traditional textile in Israel