Despite record numbers of women launching businesses across the UK, female founders continue to receive a disproportionately small share of investment funding, writes Jill Williams, Regional Partner for the North and Midlands at growth capital investor BGF. And as International Women’s Day (8 March) approaches, she explores how women are driving growth across the UK business landscape — and why more must be done to build a truly inclusive entrepreneurial ecosystem.
Women are starting businesses across the UK at an unprecedented level. In 2023 alone, 164,000 companies were founded by women, and almost half of early-stage entrepreneurs are currently female. Yet when these businesses seek investment, the picture changes. In 2024, all-female founding teams received just 2% of equity funding, while all-male teams secured 80%.
The creative industries and tech sector have been identified as having high growth potential at a national policy level and locally. With many women founding and building businesses in these sectors, the funding gap is not just a challenge for female entrepreneurs – it limits the growth potential of the UK economy. Understanding why it persists and how women can successfully scale with the right support is crucial.
Why the funding gap persists and the progress being made
Investment decisions often rely on familiarity. Founders who resemble previous successes, operate within known networks, or present rapid, high-visibility growth are more likely to receive funding.
Businesses built on operational strength, recurring revenue and measured expansion – more common among female founders – can appear less dramatic at pitch stage, even though this model also delivers strong returns.
Changing these outcomes requires shifting how investment opportunities are evaluated – who makes the decisions, what counts as credible experience and how risk is interpreted.
As the most active investor in female-powered businesses in the UK, improving access to capital for underserved groups is fundamental to our goal as an inclusive investor. In 2025, BGF pledged at least £300 million to female-powered businesses over the next five years, building on its initial £25 million contribution to the Invest in Women Taskforce, which raised over £250 million last year.
As a signatory to the Investing in Women Code, developed with the Department for Business and Trade, we share data and adapt investment practices to widen access to funding. Meanwhile, internally we maintain near gender parity and visible female representation across investment teams and on portfolio boards – because diversity amongst decision-makers materially improves outcomes for female entrepreneurs.
Beyond investor initiatives, other programmes support female founders, including the Women in Innovation Award, the Female Founders Fund and organisations including The King’s Trust.
What can female founders do?
Understanding investor behaviour helps explain why founders must approach fundraising strategically, which is useful for women looking to scale.
- Choose a partner who helps you create value beyond capital
For a growing business with ambitions to expand, the advice and experience of potential investors can be invaluable. This is the kind of strategic support that is difficult to replicate through debt funding or capital markets alone.
- Be clear and transparent on why you want investment
Start by clarifying why you’re seeking investment. Be upfront about where your business stands – the strengths, the challenges and areas for improvement – as well as what you ultimately want to achieve. That level of transparency is what leads to a deal that works for you, not just for your investors.
- Build a supportive network
The investment community can still feel male-dominated, but that should not be a barrier. A growing number of networks and communities exist to support female founders, alongside investors who actively champion diverse leadership. Surrounding yourself with the right people can transform your entrepreneurial journey, strengthen your confidence and ensure your successes are both recognised and celebrated.
Accepting the challenge
Women are driving growth across the UK business landscape, yet more must be done to create inclusive entrepreneurship. Capital alone is not enough. Networks, mentorship and visibility are crucial to accelerating the success of female business leaders.
Increasing representation on boards and nurturing strong mentor-mentee relationships are practical steps the industry can take to unlock the potential of female-powered businesses – not just on International Women’s Day, but long into the future.
