Why we need more women investors to back women founders

Access to adequate funding is still a major barrier to the success of businesses founded by women.

by Debbie Zaman

Women in the UK are showing that they have what it takes to dominate business ownership - figures reveal over 150,000 new all-women-led companies were founded in 2022. This comes as The Rose Review calls upon even further backing to continue this upward trend.

Coinciding with the recent Government-backed review pledging to create three million places for women to access business support over the next three years, it sounds promising that women are getting the support they need to build their businesses. But is it enough?

One major factor still preventing many women founders from reaching their potential is access to adequate funding. Startups research found that male-owned organisations receive over 6 times more funding than those with a woman at the helm - £4.7mn compared to £763,300 respectively. If this isn’t concerning enough, reports reveal that women still only receive less than 3% of all venture capital investments.

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