Abstract

http://ssrn.com/abstract=2442954
 


 



Gender Dynamics in Crowdfunding (Kickstarter): Evidence on Entrepreneurs, Investors, Deals and Taste Based Discrimination


Dan Marom


Hebrew University of Jerusalem - Jerusalem School of Business Administration

Alicia Robb


University of California, Berkeley - Coleman Fung Institute for Engineering Leadership; Kauffman Foundation; University of Colorado at Boulder; Federal Reserve Banks - Federal Reserve Bank of Atlanta; University of Deusto - Basque Institute of Competitiveness; Marin Economic Consulting

Orly Sade


Hebrew University of Jerusalem - Department of Finance; New York University (NYU) - NYU Shanghai

October 10, 2014


Abstract:     
In this paper we investigate whether a new form of venture financing – crowdfunding – reduces the barriers of female entrepreneurs to raise capital. Specifically, we investigate gender dynamics and biases in the process of raising funding to new projects via the leading crowdfunding platform – Kickstarter. We find women made up about 35% of the project leaders and 44% of the investors on the platform. On average, men seek significantly higher levels of capital than women for their projects, and also raise more funds than women. However, women enjoy higher rates of success in funding their projects, even after controlling for category and goal amount. Only about 23% of projects that men invested in had female project leads. Conversely, more than 40% of projects that women invested in had female project leads. Multivariate analysis indicated significant positive correlation between the gender of the project leader and the percentage of the same gender investors. Questions arise around what factors explain the fact that female-led projects are predominantly financed by women. In an attempt to disentangle taste-based discrimination from statistical discrimination we conducted a survey of investors from the Kickstarter platform and find evidence that some of lower investment in female-led projects by men can be attributed to taste-based discrimination.

Number of Pages in PDF File: 62

Keywords: crowdfunding, startup capital, gender

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Date posted: May 29, 2014 ; Last revised: October 13, 2014

Suggested Citation

Marom, Dan and Robb, Alicia and Sade, Orly, Gender Dynamics in Crowdfunding (Kickstarter): Evidence on Entrepreneurs, Investors, Deals and Taste Based Discrimination (October 10, 2014). Available at SSRN: http://ssrn.com/abstract=2442954 or http://dx.doi.org/10.2139/ssrn.2442954

Contact Information

Dan Marom
Hebrew University of Jerusalem - Jerusalem School of Business Administration ( email )
Mount Scopus
Jerusalem, 91905
Israel
Alicia Robb (Contact Author)
University of California, Berkeley - Coleman Fung Institute for Engineering Leadership ( email )
130 Blum Hall #5580
Berkeley, CA 94720-5580
United States
Kauffman Foundation ( email )
4801 Rockhill Road
Kansas City, MO 64110-2046
United States
HOME PAGE: http://www.kauffman.org/kfs
University of Colorado at Boulder ( email )
1070 Edinboro Drive
Boulder, CO 80309
United States
Federal Reserve Banks - Federal Reserve Bank of Atlanta
1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
University of Deusto - Basque Institute of Competitiveness
Mundaiz 50
San Sebastián, 20012
Spain
Marin Economic Consulting ( email )
United States
HOME PAGE: http://marin-economic-consulting.com/
Orly Sade
Hebrew University of Jerusalem - Department of Finance ( email )
Mount Scopus
Jerusalem, 91905
Israel
972 2 588 3227 (Phone)
New York University (NYU) - NYU Shanghai ( email )
1555 Century Ave
Shanghai, 200122
China
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