Investing in Women Code Shows Progress in Female Founder Funding

In a promising development for the UK's entrepreneurial landscape, the latest annual report on the Investing in Women Code reveals that signatories are making strides in backing female founders. However, the data also highlights persistent challenges in achieving gender parity in startup funding.

Key Findings

• 32% of venture capital deals made by Code signatories went to female-founded companies, outperforming the market average of 28%.

• Angel groups with over 15% women investors directed 57% of their investments to teams with women founders.

• The number of pitch decks and funding requests from all-female teams to angel groups has increased.

• However, the average amount of angel investment in all-female teams remains 50% lower than in mixed-gender or all-male teams.

What This Means for Angels and Founders

For angel investors, these findings underscore the importance of diversity within investment groups. The data clearly shows that having more women investors correlates with increased funding for women-led startups. Angels looking to diversify their portfolios and tap into underserved markets should consider actively recruiting women investors to their syndicates.

Female founders can take heart from the increasing attention they're receiving, particularly from Code signatories. However, they should be prepared for a funding landscape that, while improving, still presents challenges. Networking and securing warm introductions remain crucial, as the report indicates these are the most successful paths to funding for all teams.

The Role of the Investing in Women Code

Now boasting over 250 signatories, the Code has become a significant force in the UK investment scene. It accounts for 40% of UK Business Angels Association angel investment groups and 47% of venture capital deals.

The South East Angels group are proud to be a signatory of the Investing in Women Code, we are committed to levelling the playing field and improving access to finance for female entrepreneurs because we understand the importance of diversity in innovation.

Jenny Tooth OBE, Executive Chair of the UK Business Angels Association, commented on the Code's impact: "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."

Looking Ahead

While progress is evident, there's still work to be done to close the gender investment gap. The expansion of the Code to include Limited Partners and Community Development Finance Institutions (CDFIs) is expected to have a substantial impact across the finance ecosystem.

For angels and founders alike, engaging with Code signatories could provide valuable opportunities. As signatories, we have demonstrated our commitment to addressing gender disparities in funding and may offer targeted support or initiatives for women entrepreneurs.

As the investment community continues to evolve, staying informed about these trends and actively participating in diversity initiatives could be key to unlocking new opportunities and driving innovation in the startup ecosystem.

For those interested in diving deeper into the data and insights, the full Investing in Women Code annual report is available here.

To explore joining South East Angels as an investor member, visit our membership page.

To apply for funding with us, visit our founder application page.