Monday, 03 June 2019
The world of traditional finance is one that’s full of stereotypes and, for many, still conjures up images of men in pinstriped suits. While more women are getting involved, only 14% of angel investors are female, according to a report from the UK Business Angels Association.
However, the tide is beginning to turn with recent trends indicating that the number of female entrepreneurs raising finance through crowdfunding is on the up, in a move which shows how crowdfunding continues to challenge the status quo and is helping to redress the balance for female founders.
It's a similar story for crowdfunding investors, which tend to be more diverse than more traditional routes to finance; nearly a quarter of the people that have invested on Crowdcube are women, while many are younger and from more diverse backgrounds than the stereotypical investor.
There are some great success stories of female entrepreneurs that have raised finance through crowdfunding, such as Gem Misa, who has crowdfunded two businesses on Crowdcube - Righteous and Cauli Rice. Today, Righteous has been valued at more than £3.5m and is stocked in more than 1,000 stores across the UK and overseas. Cauli Rice is no less impressive, making it to the finals of Richard Branson’s Pitch to Rich 2015 campaign.
Pip & Nut, a startup producing a range of nut butters, had made their first sales at a pop-up shop and street market in London when they launched a crowdfunding campaign on Crowdcube. These initial sales, coupled with interest from the likes of Selfridges, was sufficient evidence of traction to inspire investment from the crowd. The business went on to exceed its investment target and, just five months later, Pip & Nut landed on the shelves of Selfridge's and is now stocked in over 1,200 stores across the UK (check out their timeline here).
While there's still work to be done to redress the balance, the stats below show how a growing number of females founders are turning to the crowd and achieving great results.
To date, 15% of the successful raises on Crowdcube have had female founders at the helm and have raised a total of £17.3m. In 2015, 19% of Crowdcube's successful raises were businesses with female founders, who raised £13.9m in that year alone.
A recent Beauhurst report also found that since 2011, investments into companies with no female directors on their board averaged at £2.9m, add a single female board member and that figure increases by £500,000
The funding success rates for 2015 highlights female success on Crowdcube, with a 75% funding rate for female entrepreneurs compared to the 55% achieved by their male counterparts.
Crowdcube are proud to partner with everywoman SelfMade and hope to encourage more women to grow their businesses through crowdfunding. Every month they'll be sharing expert tips, guides and insights with us on the hub.
Think your business could benefit from crowdfunding? They are also offering a free 121 consultation for all SelfMade members – fill in this quick and easy form to book yours today.