The Investing in Women scheme has shown only a marginal improvement in investment deals secured by female founders.
- As of the latest report, 68% of investment deals by scheme signatories were for male-founded companies, leaving just 32% for female-founded firms.
- The average across the market for deals involving female founders stands at 28%, nearly matching the scheme’s 32%.
- Despite the rise in signatories from 204 to over 250 companies, the percentage of deals for female-led businesses dropped from 35% last year to 32% this year.
- Angel investors have shown more favourable outcomes for female founders compared to the general venture capital sector.
The Investing in Women scheme, backed by the government, aims to increase funding opportunities for female founders but has so far only resulted in a small improvement, with a 4% rise over the industry average. According to the latest data from the Department for Business and Trade, the scheme’s signatories provided 68% of venture capital deals to male-founded companies, leaving 32% for those led by women.
When compared to the broader market, female-founded companies secured 28% of the investment deals, reflecting a slight advantage for businesses participating in the scheme at 32%. However, this figure represents a decline from the previous year’s 35%, indicating challenges remain in achieving gender parity in investment.
The initiative was established in response to the Rose Review, which identified significant funding barriers for female entrepreneurs. The voluntary commitment mandates that participating firms enhance funding access for women and report annually on their investment’s gender distribution. The number of firms engaged with the code has increased, surpassing 250 from the previous count of 204 in 2023.
The British Business Bank, along with other key financial organisations such as UK Finance and the UK Business Angels Association, are among the notable signatories. Louis Taylor, CEO of the British Business Bank, acknowledged some progress in the sector but emphasised the need for continued collective action to foster equity and drive economic growth.
Encouragingly, Jenny Tooth, the executive chair of the UK Business Angels Association, highlighted a positive trend among angel investors. She noted that for the first time, the deals for women founders surpassed those for male founders within their group, showing a progressive shift towards gender balance.
Despite incremental progress, significant work remains to achieve gender parity in funding for female founders across the venture capital landscape.
