Social Venture Network [SVN] has launched an Indiegogo campaign that aims to help fund startups that aren’t predominantly male and white.
The 26-year-old non-profit is looking to assist women and minority entrepreneurs with a crowdsourcing campaign that will try and address the odds stacked firmly against any startup that isn’t run by white males.
“Investors tend to go with what they know and look in familiar circles for investment opportunities,” SVN executive director Deb Nelson told VentureBeat. “Women and people of colour often get missed.”
SVN quotes figures that state female-led enterprise startups are on average 40 per cent less likely to be funded but generate 15 per cent greater revenue, according to a study by Emory University. When it comes to minority-led startups it’s a similar story as they are 35 per cent less likely to be funded than startups led by white males.
To tackle the current bias SVN is planning to provide support services for women and minority entrepreneurs and even hand scholarships to those that it thinks are deserving of it with Nelson revealing that “every $1,000 [£618] we raise provides a scholarship to another emerging entrepreneur”.
The money comes from the aforementioned Indiegogo campaign and the signs so far point to it being a successful one. Just over a week after being launched it’s already raised $10,306 [£6,366] of the $25,000 [£15,442] goal. SVN opted for the “flexible funding” option that means it will get the donated funding regardless of whether or not it reaches the $25,000 [£15,442] goal set out above.
Many of London’s recent Indiegogo campaigns to support startups have also thought outside the box with the IncuBusLDN double-decker bus based startup incubator an example of this in action.
Indiegogo has come in for some criticism in recent months with developers opting for competitor Kickstarter in order to source the highest level of funding possible and the above campaign goes to show that Indiegogo still very much has a place.