Investing in Women Code backs UK female founders

The Investing in Women Code was founded in 2019 as a government-led initiative in response to the Rose Review’s findings that a lack of funding was one of the most significant barriers to women seeking to effectively scale a business.

After five years, over 250 organisations have now signed up to the Code, showing the growing numbers of lenders and investors committed to increasing the levels of finance directed towards women-led businesses.

Last year, 32% of all venture capital deals made by Investing in Women Code signatories were in female-founded companies, compared to the market average of 28% - the fourth year in a row that signatories have outperformed the wider ecosystem.

The Department for Business and Trade report also shows that signatories who consistently report data year-on-year perform better in deals to teams with all-female founders than those who do not.

However, there is still a long way to go, with the average amount of angel investment in all-female teams 50% lower than the amount invested in mixed gender teams and all male teams.

Jenny Tooth, executive chair, UK Business Angels Association, says: “With an increasing number of our Angel groups signing up to the Code, including a growing number of groups with a strong proportion of women angels, we can see the impact on women founders seeking and finding angel investment across the UK."

Christine Hockley, MD, funds at British Patient Capital adds: “The Investing in Women Code report continues to demonstrate there is a clear link between gender diversity in senior roles at VC firms and the capital going to female entrepreneurs and women-led businesses.

"As the data shows, when investment teams have 50% or more female members, teams with at least one female founder are more likely to reach Investment Committee stage."

Read the report: