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

Abstract

This study focuses on the period around the initiation of the leading reward-based crowdfunding
market – Kickstarter, and documents the behavior of male and female entrepreneurs in the process
of raising pre-seed capital. We find that women are concentrated in stereotyped sectors both as
entrepreneurs and as backers. We also find that women enjoy higher rates of success than men do, even after controlling for sectors and funding goal, and that backers of both genders have a
tendency to contribute to entrepreneurs of their own gender. We conducted a survey of Kickstarter
backers and found evidence of taste-based discrimination by male backers.

Keywords: crowdfunding, startup capital, gender