Investment crowdfunding is more than a financial mechanism—it’s a pathway to democratize access to capital for entrepreneurs and investors alike. In 2024, this potential continued to take shape, with promising trends emerging for women and minority founders. While progress is evident, the data highlights both achievements and opportunities for growth.
Women-Founded Companies: Breaking Records, Closing Gaps
In 2024, 34% of all new companies launching Regulation Crowdfunding (Reg CF) raises included at least one woman founder, setting a new benchmark. This upward trend demonstrates the growing representation of women in entrepreneurship and their engagement with innovative funding platforms like crowdfunding.
However, a notable disparity remains in the capital raised. Women-led teams accounted for 26% of total Reg CF capital raised, signaling an imbalance compared to their presence in the market. By comparison, traditional venture capital lags even further behind, allocating just 1.9% of total VC funding to women-only teams and 20.8% to mixed-gender teams.
This underscores the vital role crowdfunding plays as a more equitable funding alternative, though there’s more work to do to bridge the gap.
Minority-Founded Companies: Crowdfunding Driving Representation
Minority entrepreneurs also made significant strides in 2024. 34% of new Reg CF deals featured at least one minority founder, aligning with the representation of women founders in crowdfunding. Minority-led companies successfully secured 27% of all Reg CF capital raised, showcasing how crowdfunding is empowering underrepresented entrepreneurs to access essential resources.
This growing participation reflects the inclusivity of crowdfunding as a funding model, providing opportunities to those often overlooked by traditional finance.
A Path Forward: Unlocking Greater Impact
While investment crowdfunding has proven to be a transformative tool for underrepresented founders, the data reminds us of the work still needed to achieve full equity in funding. At FundingHope, we’re committed to bridging these gaps by connecting impact-driven investors with entrepreneurs who are building sustainable, innovative businesses—especially in communities that need it most.
Together, we can drive meaningful progress, ensuring that women and minority founders receive the funding they need to thrive. Join us in shaping a more inclusive entrepreneurial ecosystem where every founder has the opportunity to succeed.