Crowdfunding is a revenue bonanza for businesswomen, breaking down the gender divide that has long locked ‘fempreneurs’ out of investment opportunities, industry expert Rhondalynn Korolak says.
Ms Korolak, a lawyer, chartered accountant, best-selling author of Financial Foreplay, and Managing Director of online tech start-up Businest® Pty Ltd, says crowdfunding is the ultimate leveler, giving women the opportunity to compete for cash against the male-dominated big end of town.
"It's a dirty little secret that women entrepreneurs have to go much further to persuade backers on the value of their business idea,” Ms Korolak says.
“We have to do everything a man does and we have to do it better, in a skirt, wearing high heels and often with a toddler perched on our hip."
Ms Korolak is part of a groundswell of women turning to crowdfunding to get their ideas and innovations off the ground. They are disillusioned with doomed-to-fail conventional funding mechanisms and are taking their ideas direct to the market – where they are reaching an audience of critical mass and receiving funding in record numbers.
Ms Korolak says that without crowdfunding, Businest, an online financial coaching tool, would not receive the capital needed to take the product to a full-scale commercial launch.
“Crowdfunding is the make or break cash driver for Businest. Without it, my business concept, like so many others championed by women, would struggle to get off the drawing board.”
Research shows that gender discrimination is alive and well among traditional funding channels, comprised primarily of white, male investors. Women, who are behind about one third of business start-ups, have a 20 per cent lower loan approval rate than men. *
Furthermore, a recent study by US academics, including representatives from the Harvard Business School, asked 194 potential investors to rate a series of identical pitch videos delivered by either a male or female voice. Only 32 per cent of people said they would fund the woman, compared with 68 per cent for the man.
Not only were the pitches narrated by men significantly more likely to be funded, they were also considered to be more "persuasive," "fact-based," and "logical”.
"Businesswomen are at a huge disadvantage when seeking capital from traditional sources, but crowdfunding has leveled the playing field,” Ms Korolak says.
“It's created a viable new investment avenue for women (and minority entrepreneurs) – groups that have traditionally been ostracised or discriminated against when seeking funding."
To learn more about the success of women in crowdfunding and Businest® - The Safest Place to Grow Your Business, visit:
*Source: Global online lending marketplace Biz2Credit.com
About Rhondalynn Korolak
Korolak is a Melbourne-based lawyer, chartered accountant, media commentator, speaker and small business expert. She provides advice on profitable growth to corporations, and she contributes to well-known publications and TV programs such as Yahoo, CNN iReport, Kochie’s Business Builders, Skynews, Channel 9, BNET, MYOB, Marketing Magazine and Business Insider. She is also the best-selling author of Financial Foreplay, Sales Seduction and On The Shoulders of Giants.
To organise an interview with Korolak contact:
1300 892 984 (in Australia)
Rhondalynn Korolak and Imagineering Now Pty Ltd.
Rhondalynn Korolak is a Melbourne-based lawyer, chartered accountant, business Coach, speaker, best-selling author and small business marketing expert. She provides advice on profitable growth to corporations, sporting clubs and government agencies and she contributes to well-known publications such as Yahoo, CNN ireport, Kochie’s Business Builders, bNet, Fast Thinking, Cosmopolitan and Marie Claire. Her recent books include Financial Foreplay and On The Shoulders of Giants. Contact her at: [email protected]
1300 892 984 (in Australia)
P: 1 300 892 984
Businest Pty Ltd
Rhondalynn Korolak is a Melbourne-based lawyer, chartered accountant, media commentator, speaker and small business expert. She provides advice on profitable growth to corporations, and she contributes to well-known publications and TV programs such as Yahoo, CNN iReport, Kochie’s Business Builders, Skynews, Channel 9, BNET, MYOB, Marketing Magazine and Business Insider. She is also the best-selling author of Financial Foreplay, Sales Seduction and On The Shoulders of Giants.