The United Kingdom has witnessed a notable rise in female entrepreneurship, setting the stage for a more balanced and inclusive business environment.
A pivotal driver of this development is the Investing in Women Code (IWC), a government-led initiative that’s creating significant changes in the country’s finance and venture capital markets.
Gaining Momentum: The Increasing Influence of IWC Signatories
Recent reports illuminate the growing influence of IWC signatories in the venture capital landscape.
Notably, these signatories have been involved in a higher percentage of deals featuring at least one female founder compared to the wider market.
The numbers are steadily improving, and for the third consecutive year, IWC signatories are leading the venture capital market.
With 204 signatories now part of the initiative, the IWC accounts for a striking 39% of UK venture and growth equity deals.
This significant increase, up from 24% in 2020, shows how the code is helping to bridge the gender gap in finance.
Unleashing Economic Potential: The Role of the Investing in Women Code
The IWC was established in 2019 following the findings of the Rose Review.
This landmark government initiative highlights that funding remains a substantial barrier for women scaling their businesses.
The IWC’s mission aligns with the government’s economic growth priority – fostering the prosperity of female-led businesses and ensuring they receive equal access to finance.
Making Strides: Key Findings from the IWC’s Third Annual Report
IWC’s third annual report reveals several important facts:
- The proportion of UK venture capital deals involving an IWC signatory has surged from 24% in 2020 to 39% in 2022.
- New IWC signatories include British Patient Capital, M&G Catalyst, and the University of Exeter.
- The number of venture capital deals involving all-female teams has risen from 6% in 2021 to 9% in 2022 in the broader market.
- Despite this progress, female investors remain underrepresented on investment committees.
These findings highlight the strides made in promoting female entrepreneurship and the areas requiring further attention.
Rising Challenges: Measures to Support Female Entrepreneurs
As with all sectors, female-led businesses have faced economic challenges.
Angel group signatories observed a decrease in funding requests by all-female teams, echoing a similar trend observed with their all-male counterparts.
These findings underline the broader economic pressures and the importance of continued support for women in business.
Recognising these challenges, IWC signatories are implementing measures to bolster their support for female entrepreneurs.
These initiatives range from connecting them with women-focused networks to recruiting from a more diverse pool of candidates and implementing policies to achieve gender equity in the startup ecosystem.
Moreover, many industry experts are voicing their commitment to the IWC and its mission.
They acknowledge the progress made and the need for further efforts to close the funding gaps between male and female entrepreneurs.
Jenny Tooth OBE, Executive Chair of the UK Business Angels Association, expressed optimism for the improving economic environment for Angel investing and the recruitment of more Angel Group signatories.
Summary
Promoting gender equality in finance and entrepreneurship remains a pressing issue.
While the Investing in Women Code has made significant strides, the journey towards equality is far from over.
As we move forward, it’s crucial for industry players to rally around this cause and work towards making the UK a leading nation for female entrepreneurs.
The potential for economic growth and societal progress is immense, and the time to act is now.
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