Lift Women’s Irene Tsang on why crowdfunding needs to keep female startup founders in mind

Imagine having a groundbreaking business idea that could change lives, but every time you seek funding, you hear: “It’s too early,” “Come back when you have traction,” or worse, “Prove yourself first.”

This is the reality for countless women entrepreneurs across Australia and Asia.

Women have different financial needs to men, however most financial products are designed for men. Despite women-led businesses proving to be highly profitable and impactful, traditional financing methods continue to shut them out.

The East Asia and Pacific region alone has the largest SME gender finance gap, sitting at a staggering US$1.2 trillion. Meanwhile, the latest Cut Through Venture reports show that only 2% of venture capital funding in Australia goes to sole female founders, down from 3% the previous year.

This begs the question: How are women entrepreneurs meant to finance their ideas?

The obvious answer is alternative financing – which has become a key driver of financial inclusion for women entrepreneurs in the Asia-Pacific region. This is where crowdfunding comes in.

Crowdfunding democratises access to capital by allowing founders to raise funds directly from their communities.

You may be familiar with the platform Birchal, which has successfully grown the equity crowdfunding market in Australia, creating a loyal community of investors.

However, equity crowdfunding isn’t suitable for all businesses. It requires founders to have achieved certain traction or revenue, and to give up ownership in exchange for funding – something they have worked tirelessly to build.

For women entrepreneurs, this is particularly significant. Through the COVID pandemic, women were disproportionately affected – losing jobs at a higher rate than men (5% vs 3.9%), taking on more unpaid caregiving responsibilities (on average, 4.1 hours/day vs 1.7 hours/day), and sacrificing financially by reducing their working hours.

Given these financial pressures, many women cannot afford to take on equity dilution or additional debt or self-funding their business.

Reward-based crowdfunding

This is why reward-based crowdfunding is a game-changer for female founders.

Unlike equity crowdfunding, where investors receive shares, reward-based crowdfunding allows businesses to raise funds in exchange for rewards such as exclusive products, services, or experiences.

It is low-risk, community-driven, and puts the power firmly in the hands of founders. By 2025, reward-based crowdfunding will reach an estimated transaction value of US$475 million in the United States of America alone, with Kickstarter leading the market.

The most funded projects on Kickstarter have been innovative tech products like the Pebble Time smartwatch and games like Exploding Kittens.

But women entrepreneurs need more than just transactional platforms; they need community, mentorship and a supportive ecosystem.

Research has shown that women entrepreneurs outperform men in crowdfunding by 32%, yet remain under-represented in major crowdfunding platforms, as well as VC funding and banking. Women can’t afford to wait for the system to change – they need actionable solutions that work now.

That’s where Lift Women comes in.

Irene Tsang, Dr Ariella Heffernan-Marks, Founder, OVUM (Best Project Award Winner), Joseph Chan

At the early stage, it’s never about traction or revenue – it’s about the founder first, then the market, then the solution. A great founder is curious, driven, determined, resilient, and with a deep understanding of their market. That’s why, at Lift Women, we focus on the potential of ventures beyond just revenue and traction and provide the right support system to help them get there.

We offer a community-driven crowdfunding platform designed specifically for women, alongside practical tools, templates, coaching, mentorship, and a strong network to help them start, scale, and thrive. We create a healthy trajectory for women founders, with many then going on to raise larger capital rounds, secure VC investment, or access traditional funding options – on their own terms.

Take Ovum AI as an example. A female-led startup transforming healthcare for women, Ovum AI was part of the Lift Women pre-accelerator program, successfully raised $1.7 million in Seed funding within just 12 months of graduating from the program and won a $20,000 LiftHER grant alongside a successful crowdfunding campaign.

Ovum founder Dr. Ariella was more than capable of pitching to VC funds, but the grant, mentorship, and support gave her the validation, confidence, and runway to launch her beta and take the next step.

Because it’s not just about the funding. It’s about creating the right conditions for female founders to succeed. Reward-based crowdfunding holds the power to improve founders’ access to finance when they struggle to attain elsewhere and puts the power back to women’s hands in closing the gender financing gap.

Women are good business

Investing in women is good business.

Uplifting women-led businesses has a tangible beneficial effect on communities. Research also indicates that investing in women’s financial inclusion could add US$1.1 trillion to the global economy by 2030.

The numbers don’t lie. Women-led crowdfunding campaigns outperform men’s by success rate in achieving funding, and 20% shorter campaign completion times. The gap is not about ability – it’s about access. And access is something that we, as a society, have the power to change today.

With Asia-Pacific set to become the fastest-growing market for reward-based crowdfunding, projected to reach US$252.60M in transactional value by 2025, there is an enormous opportunity for women entrepreneurs to leverage this movement and claim their share of capital. But for that to happen, we must actively shift the conversation from why women struggle to get funded to how we can create funding models that actually work for them.

Crowdfunding, when designed with women’s needs in mind, has the potential to be that game-changer. Lift Women is leading this shift. Not just as a funding platform, but as a force for change, driving financial equity, innovation, and economic growth for women entrepreneurs across the APAC region.

Investing in women is not charity – it’s smart business. And for those willing to embrace this shift, the future is full of possibilities.

• Irene Tsang is the CEO and founder of Lift Women.