Researchers surveyed 4,500 members of the UK public to explore factors influencing their decisions when considering equity crowdfunding investments. Contrary to expectations, the founder's gender did not emerge as the deciding factor.
Instead, the type of business proved more influential. The study found that women were more attracted to healthcare businesses, while men showed a stronger preference for financial technology (fintech).
“"We expected to find that women would be more likely to invest in businesses led by other women, but that wasn’t what the results showed. The type of business appeared to matter more than the gender of the person running it."
Equity crowdfunding offers an alternative route for businesses seeking finance, potentially helping women overcome historical difficulties in securing funding through traditional channels. The findings suggest that, in hypothetical investment decisions, the nature of the business was more influential than the founder’s gender.
While healthcare businesses may appeal to women due to associations with care and social benefit, and fintech to men, these are possible explanations rather than definitive proof of universal preferences.
“"Crowdfunding gives people the opportunity to support businesses they believe in. Understanding what attracts different investors could help entrepreneurs think about how they present their ideas and reach potential backers."
The researchers emphasised that the study reflects hypothetical investment decisions and does not necessarily mirror real-world investing choices or actual crowdfunding outcomes. However, the results offer a new perspective on how individuals assess business opportunities and the factors influencing investment willingness.
