The Investing in Women scheme shows limited impact on increasing funding for female entrepreneurs, with only 4% more deals than the industry average directed towards women.
- A significant portion of venture capital deals, about 68%, continue to be awarded to male-founded companies despite the initiative.
- The scheme’s aim to bridge the funding gap has led to a minor improvement, raising female-focused deals to 32% compared to a market average of 28%.
- Participation in the scheme has grown, with signatories increasing from 204 in 2023 to over 250, yet challenges persist in achieving gender parity.
- There is optimism among angel investors where deals for female founders have started to outstrip those for male founders, indicating potential progress.
The Investing in Women initiative, designed to enhance funding opportunities for female entrepreneurs, has shown only marginal success in shifting the investment landscape. Despite its intent to close the funding gap, the scheme has managed to secure just a 4% increase in venture capital deals for women compared to the industry standard.
Analysis of last year’s data reveals that approximately 68% of venture capital investments by the scheme’s signatories were allocated to male-founded companies. This statistic underscores the ongoing challenge of achieving substantial progress in gender investment equality.
The initiative has managed to slightly elevate the percentage of deals for women to 32%, a modest improvement from the market average of 28%. However, this figure represents a decline from the previous year’s 35% of deals going to women-founded businesses, indicating fluctuations in progress.
Encouragingly, the scheme’s reach has extended, with participation growing as more firms commit to the code. From 204 signatories in 2023, the number has surpassed 250, yet the disparity in funding allocation continues to challenge the goals of the initiative.
A positive sign comes from the angel investment sector where, for the first time, signatories report more deals with female founders than their male counterparts, as highlighted by Jenny Tooth, executive chair of the UK Business Angels Association. This suggests a breakthrough in female investor advocacy.
While efforts to boost investment in women-led businesses show some promise, substantial advances toward gender parity in funding remain elusive.
