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A whole new world: Counterintuitive crowdfunding insights for female founders

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  • Wesemann, Henrik
  • Wincent, Joakim

Abstract

Female entrepreneurs are subjected to stereotypes that make it difficult to secure funding. Crowdfunding challenges many of the causes of this discrimination but we know little about if and how it changes optimal funding strategies for female entrepreneurs. Using a sample of 3191 crowdfunding campaigns by female entrepreneurs, we draw from signaling theory to develop and test a series of counterintuitive conjectures for female crowdfunding success. Our results contradict advice that may be derived from traditional entrepreneurial finance: women in crowdfunding should use their gender as advertising, use more female-centric language, avoid self-promotion, start businesses in male-dominated sectors, and ask for more money. These findings highlight new theoretical mechanisms in crowdfunding and develop recommendations for female entrepreneurs who want to raise funds.

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  • Wesemann, Henrik & Wincent, Joakim, 2021. "A whole new world: Counterintuitive crowdfunding insights for female founders," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    • Handle: RePEc:eee:jobuve:v:15:y:2021:i:c:s2352673421000135
    DOI: 10.1016/j.jbvi.2021.e00235
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    Cited by:

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    7. Williamson, Amanda J. & Short, Jeremy C. & Wolfe, Marcus T., 2021. "Standing out in crowdfunded microfinance: A topic modeling approach examining campaign distinctiveness and prosocial performance," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    8. Hassna, Ghazwan, 2022. "Crowdfund smart, not hard – Understanding the role of online funding communities in crowdfunding success," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    9. Hayward, Mathew & Cheng, Zhiming & Wang, Haining & Smyth, Russell, 2023. "Parental influence and the propensity for entrepreneurship: Evidence from the one-child policy," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    10. Berné-Martínez, J.M. & Ortigosa-Blanch, Arturo & Planells-Artigot, Enrique, 2021. "A semantic analysis of crowdfunding in the digital press," Technological Forecasting and Social Change, Elsevier, vol. 173(C).

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