Investors Focus More on Business Type Than Founder Gender in Study
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Original source:phys.org
Key Takeaways
- Investors evaluate business models over founder gender in crowdfunding environments.
- The University of Portsmouth study was published in the British Journal of Management.
- Commercial viability and product type remain the primary drivers of investment decisions.
According to research from the University of Portsmouth, prospective crowdfunding backers evaluate business proposals based on industry and product appeal rather than the gender of the entrepreneur. The experiment evaluated how decision-makers respond to pitches across different sectors, finding that business model characteristics consistently outweighed founder demographics.
These insights shed light on alternative funding mechanisms where broad public participation may mitigate traditional biases found in institutional venture capital. The study highlights the evolving dynamics of modern crowdfunding platforms, offering a nuanced perspective on entrepreneurship and capital access.
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