Research shows backing female-led businesses is good for growth

Organisations signed up to the government-backed Investing in Women Code have outperformed the wider market in backing female entrepreneurs for the sixth consecutive year, according to new figures published today.

The annual report, released on 8 July, shows that signatories continue to direct a greater proportion of funding to women-led businesses than the wider investment market, highlighting the growing impact of the initiative while underlining that significant funding gaps remain.

Since its launch in 2019 with just 12 founding organisations, the Investing in Women Code has expanded to more than 330 signatories, including major UK banks, venture capital firms, angel investors and lenders. New signatories this year include Nationwide and Innovate U.

The Code was established to improve access to finance for women entrepreneurs and encourage greater transparency across the investment ecosystem. Its latest findings come as the Government continues efforts to unlock economic growth by improving access to capital for underrepresented founders.

Blair McDougall, Minister for Small Business and Economic Transformation, said: “For the sixth year in a row, Investing in Women Code signatories have outperformed the wider market, showing that backing female founders is good for business and good for growth.

“Yet women-led businesses still face greater barriers to funding and growth. That is why the Code matters – helping more women start, scale, and succeed, while unlocking talent, creating jobs and strengthening the UK economy.”

Despite continued progress, the report confirms that women-led businesses still receive a disproportionately small share of overall investment, reinforcing calls for continued action across both public and private investment markets.

One entrepreneur benefiting from early-stage support is Kate Heath, founder and CEO of Gaia Learning, an online school specialising in education for neurodivergent learners.

After joining the Baltic Ventures Accelerator in 2023, Heath received mentoring, business support and a £50,000 pre-seed investment. That initial funding helped Gaia Learning accelerate product development before securing more than £600,000 in follow-on investment. In 2025, Heath was named Great British Entrepreneur of the Year.

Kate Heath said: “Securing funding is not easy, whichever path you take, and I believe it’s one of the most challenging parts of building a business. But I’ve learned that when you stop seeing it as just raising money and start seeing it as finding people who genuinely believe in your mission, it becomes more rewarding.

“I’ve been incredibly fortunate because we work in education and support children with SEND, people connect with what we’re trying to achieve on a personal level. The funding has enabled us to grow, but just as importantly, it’s brought a community of people who share our belief that every child deserves an education that works for them.”

Alongside the Investing in Women Code, the Government says it is taking further steps to improve access to finance through the Invest in Women Taskforce, which has already deployed more than £70m from its £635m funding pool during its first year.

The British Business Bank is also expanding opportunities through its £400m Investor Pathways Capital initiative, designed to support emerging fund managers and broaden access to investment capital. Last week, the Bank committed £90 million to ten new funds through the programme, with women accounting for more than half of the General Partners leading those funds.

Kristen McLeod, Chief Strategy Officer at the British Business Bank, said: “This year’s findings show that the Investing in Women Code is helping to gradually shift the dial, but it’s clear there is much more to do.

“Through the Bank’s work, from backing the Invest in Women Taskforce to committing significant funding to the next generation of female fund managers through Investor Pathways Capital, the British Business Bank is focused on widening access to finance and knocking down barriers so that more and more female founders can reach their full potential.”

While the latest figures demonstrate continued momentum, the report concludes that sustained collaboration between government, investors and industry will be needed if women-led businesses are to receive a more equitable share of UK investment in the years ahead.