Investment in female-led businesses has reached a significant milestone, with research revealing that signatories to the government-backed Investing in Women Code have consistently outperformed the broader market. Over £1.3 billion was invested in women-led enterprises between 2020 and 2025, accounting for a substantial 17% of total investment in the UK's entrepreneurial ecosystem.
The rapid growth of the Investing in Women Code has been driven by an increasing recognition within the financial sector that supporting a diverse range of entrepreneurs is crucial for both individual business success and overall economic expansion. The initiative now boasts over 330 participating organisations, including major UK retail banks, venture capital firms, angel investors, and lenders, up from just 12 signatories in 2019.
The findings align with the government's objective to unlock the full potential of UK entrepreneurship. By ensuring that talented founders can access the necessary finance, regardless of gender, the UK aims to stimulate innovation and create jobs. Blair McDougall, Minister for Small Business and Economic Transformation, highlighted the significance of backing female founders while also acknowledging the persistent barriers to funding and growth faced by women-led businesses.
One notable example is Kate Heath, Founder and CEO of Gaia Learning, a leading online school for neurodivergent learners. After receiving targeted investment and support through the Baltic Ventures Accelerator in 2023, Gaia Learning secured over £600,000 in follow-on funding, contributing to Kate Heath being named Great British Entrepreneur of the Year in 2025.
Despite this progress, women-led businesses continue to receive a relatively small share of total investment. The report underscores the need for concerted efforts across the funding ecosystem to address systemic imbalances. Initiatives such as the Invest in Women Taskforce and the British Business Bank's Investor Pathways Capital Initiative are working to tackle this disparity, with over £170 million already deployed through these programmes.
The British Business Bank has committed a further £90 million to ten new funds under its Investor Pathways programme, with women comprising more than half of the General Partners in this cohort. This investment is expected to have a significant impact on the diversification of the market and the growth of female-led businesses.