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

Gafni, Hadar; Marom, Dan M.; Robb, Alicia; Sade, Orly

doi:10.2139/ssrn.2442954

Cited by 149 publications

(83 citation statements)

References 44 publications

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“…Last, most past crowdfunding studies examine consistent patterns in funding behavior among backers. However, recent research has called for attention to backer characteristics and suggested that male and female backers can behave varyingly in the funding process (Greenberg and Mollick, ; Marom et al, ). In line with this logic, this research adopts the gender effect in altruism–egoism literature and replicates the gender‐difference hypothesis in the crowdfunding context.…”

Section: Discussionmentioning

confidence: 99%

“…Moreover, recent crowdfunding studies shed light on backer characteristics as determinants for funding decision, one of which is gender (Greenberg and Mollick, 2017). For instance, researchers find that women are more likely to support other female-led new product projects (Greenberg and Mollick, 2017), but it is not necessarily the case for men supporting other men (Marom, Robb, and Sade, 2016). Concerning the importance of tapping the right backers, understanding backer characteristics can provide meaningful implications regarding how to effectively build a crowdfunding community (Belleflamme et al, 2014).…”

Section: Practitioner Pointsmentioning

confidence: 99%

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Backer Motivation in Crowdfunding New Product Ideas: Is It about You or Is It about Me?

Zhang¹,

Chen²

2018

J of Product Innov Manag

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Entrepreneurs are using crowdfunding to reach out to the general public to obtain financial support for their new product development. Those who offer project creators financial support are called backers. In this research, the authors examine two types of backer motivation, other‐orientation and self‐orientation, and their respective effects on a backer’s funding decision on new product ideas at the reward‐based crowdfunding platform. Other‐orientation is defined as a backer’s altruistic motivation to help others when making a funding decision; and self‐orientation is defined as a backer’s egoistic motivation to pursue internal feeling, such as personal satisfaction and power to control the project. They find that self‐orientation has a stronger positive effect than other‐orientation on the backer’s funding decision. Furthermore, the authors examine the difference between men and women, and find that the relationship between other‐orientation and funding decision is stronger for women than men, but the relationship for self‐orientation is stronger for men than women. The authors conduct three empirical studies to test the hypotheses in both the backer’s and the project creator’s contexts. In Study 1, they adopt a survey method to investigate effects of the backer’s motivation on his or her funding decision in the film category. In Study 2, they use data of 600 film projects from kickstarter.com to examine linguistic cues used by project creators that stimulate backer motivation. In Study 3, they conduct an experiment to further validate results of the difference between men and women. Although some research suggests that extrinsic reward is a reason for backers’ funding behavior, the authors emphasize that their psychological need also plays an influential role. In addition, findings of the difference between men and women enrich the crowdfunding literature by discovering distinct backer subgroups.

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Section: Discussionmentioning

confidence: 99%

Section: Practitioner Pointsmentioning

confidence: 99%

Backer Motivation in Crowdfunding New Product Ideas: Is It about You or Is It about Me?

Zhang¹,

Chen²

2018

J of Product Innov Manag

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“…Research on equity crowdfunding investors, for example, has shown an investor pattern we know too well from venture and angel capital investments: women investors are underrepresented in equity crowdfunding, they appear to be more risk-averse and more biased in their assessment of the competence of other women, thus duplicating men's investment decisions (Mohammadi and Shafi 2017). Marom, Robb, and Sade (2016) similarly confirm well-known financing patterns for women ventures in their analysis of the Kickstarter platform: women ask and raise lower funding amounts compared to men, and they dominate "typical" female projects such as dance, fashion, food. Interestingly though, their data also showed that women, compared to men, were more successful in obtaining their funding.…”

mentioning

confidence: 99%

Women entrepreneurs’ financing revisited: taking stock and looking forward

2018

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“…This relative discrimination could be based on taste (Marom et al 2014), but may stem from network structures that exclude women, based on homophilous ties between (mostly male) funders and male entrepreneurs Mollick 2015, Stuart andSorenson 2008). Regardless of cause, this literature focuses on the growth and development of new ventures, rather than an initial decision to enter entrepreneurship.…”

Section: Theory Prior Literature On Gender Differences In Founding Ratesmentioning

confidence: 99%

Second Thoughts About Second Acts: Gender Differences in Serial Founding Rates

Kuppuswamy

Mollick

2016

SSRN Journal

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Men are far more likely to start new ventures than women. We argue that one explanation of this gap is that women respond differently to signals of past entrepreneurial success due to the "male hubris, female humility" effect. We argue that as a result women are disproportionately less likely to persist in second founding attempts than men when they have succeeded or failed by large margins. Using a data set of serial founders in crowdfunding, we find evidence supporting this prediction. We then turn to a unique survey of founders in crowdfunding in order to examine alternative explanations. We find support for a variety of systematic differences between male and female founders, but the persistence effect remains. While decreased persistence in the face of low quality opportunities benefits women individually, we argue that it disadvantages women as a group, as it leads to 25.3% fewer female-led foundings in our sample than would have occurred if women reacted similarly to men. Abstract: Men are far more likely to start new ventures than women. We argue that one explanation of this gap is that women respond differently to signals of past entrepreneurial success due to the "male hubris, female humility" effect. We argue that as a result women are disproportionately less likely to persist in second founding attempts than men when they have succeeded or failed by large margins. Using a data set of serial founders in crowdfunding, we find evidence supporting this prediction. We then turn to a unique survey of founders in crowdfunding in order to examine alternative explanations. We find support for a variety of systematic differences between male and female founders, but the persistence effect remains. While decreased persistence in the face of low quality opportunities benefits women individually, we argue that it disadvantages women as a group, as it leads to 25.3% fewer female-led foundings in our sample than would have occurred if women reacted similarly to men. * Authorship is alphabetical; both authors contributed equally in developing this paper. The authors would like to thank Adam Cox, Disciplines Management Sciences and Quantitative Methods

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

Cited by 149 publications

References 44 publications

Backer Motivation in Crowdfunding New Product Ideas: Is It about You or Is It about Me?

Backer Motivation in Crowdfunding New Product Ideas: Is It about You or Is It about Me?

Women entrepreneurs’ financing revisited: taking stock and looking forward

Second Thoughts About Second Acts: Gender Differences in Serial Founding Rates

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