The UK government-backed Investing in Women Code reports mixed progress.
- Only 4% more deals go to women founders than the industry average of 28%.
- 68% of venture capital deals still favour male-founded companies.
- The number of code signatories increased, yet female-focused investment decreased.
- Angel investors show more promising trends for women-led businesses.
The Investing in Women Code, a UK government initiative, aims to enhance financial support for female entrepreneurs. The recent report reveals a modest improvement of just 4% more investment deals for women-founded companies compared to the market average of 28%. In total, 32% of deals were made with companies led by women, an indication that significant challenges remain.
Despite the noble intentions behind this initiative, over two-thirds (68%) of venture capital deals by signatories last year were awarded to male founders, bringing to light the ongoing gender disparity in investment allocation. This represents a decline from the previous year when 35% of such deals involved women-founded businesses.
Participation in the Investing in Women Code has increased, with the number of signatories rising from 204 in 2023 to over 250. However, this growing commitment has not yet translated into proportional financial benefits for women entrepreneurs, as the volume of deals for female founders has dropped.
Established in 2019, the code is a voluntary agreement urging its signatories to enhance funding access for women and report on the gender distribution of their investment activities. Signatories include prominent organisations such as the British Business Bank and UK Finance.
Encouragingly, Jenny Tooth, Executive Chair of the UK Business Angels Association, highlighted more positive developments in the angel investing sphere, noting an increase in deals for women that surpassed those for their male counterparts among angel group signatories.
While some progress has been achieved, the Investing in Women scheme still faces considerable challenges in equitable funding distribution.
