Can a rise in female angel investors help close the funding gap?

As more women try on their angel investor wings, the impact on the diversity of firms securing funding could be significant.

by Rebecca Smith

Research last month from the Women’s Business Council and Deloitte found the proportion of women starting their own firms fell in 2014, despite a record number of new company registrations. There are a range of reasons why – limited access to mentors and networks, lack of self-confidence and a ‘lower appetite for risk’ among some female entrepreneurs.

The lack of female investors out there may also play a part. There are numerous routes to funding but angel investment is still mainly driven by men. Considering we often hear that investors invest in those with characteristics they see in themselves, it’s not surprising to note there can be a pattern to the ‘type’ of businesses that receive funding. A study of 220 UK start-ups by Startup DNA found male entrepreneurs are 59% more likely to secure angel investment.


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