Research shows backing female-led businesses is good for growth

Research shows backing female-led businesses is good for growth
Research published today shows that women entrepreneurs have received a greater proportion of funding from Investing in Women Code signatories than the wider market.
- Investing in Women Code signatories have outperformed the wider market in supporting female founders for six years in a row
- More than 330 organisations are now signed up to the government-backed initiative, up from just 12 in 2019
- Signatories are directing more capital to diverse teams, demonstrating that backing a broader range of entrepreneurs is good for business and growth
Women entrepreneurs are driving some of the UK’s most exciting businesses, and the organisations backing them are continuing to outperform the wider market.
For the sixth consecutive year, signatories of the Investing in Women Code have directed a greater proportion of funding to female-founded businesses than the wider market, reflecting a shared recognition that backing women is not only the right thing to do, but the most economically sound thing to do.
The Code, a government-backed commitment to improve access to finance for women-led businesses, has grown from just 12 signatories in 2019 to more than 330 organisations today, including most major UK retail banks, venture capital firms, angel investors, and lenders. New signatories in 2026 include Nationwide and Innovate U.
The findings, published today [8 July] as part of the Code’s annual report, come as Government works to unlock the UK’s full entrepreneurial potential by ensuring talented founders can access the finance they need to start and scale businesses, regardless of gender.
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.
One founder benefiting from this support is Kate Heath, Founder and CEO of Gaia Learning, the UK’s leading online school for neurodivergent learners.
After joining the Baltic Ventures Accelerator in 2023, Kate accessed expert mentoring, business support, and a £50,000 pre-seed investment. That early backing helped Gaia Learning accelerate product development and secure more than £600,000 in follow-on funding. In 2025, Kate was named Great British Entrepreneur of the Year.
Kate Heath, CEO and founder of Gaia Learning, 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.
While progress continues, the report shows that women-led businesses still receive a disproportionately small share of overall investment, highlighting the need for continued action across the funding ecosystem.
The Government is helping address this through the Invest in Women Taskforce, which has already deployed more than £70 million from its £635 million funding pool in its first year.
This builds on wider action to diversify the investment market, including through the British Business Bank’s £400 million Investor Pathways Capital Initiative, designed to support emerging fund managers and widen access to investment opportunities.
Last week, the Bank committed £90 million through the programme to ten new funds, with women making up more than half of the General Partners in the cohort.
Kristen McLeod, Chief Strategy Officer, 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.
Notes to editors:
- The Sixth Investing in Women Code Annual Report can be found online here.
-
The Code commits signatories to:
- Adopt best practices to improve female entrepreneurs’ access to finance needed to start and grow successful businesses
- Nominate a member of the senior leadership team responsible for supporting equality in all interactions with entrepreneurs
-
Provide annual funding data disaggregated by gender to DBT, based on agreed guidelines. Providing data and analysis helps to promote greater transparency across the industry, highlighting where measures are working and where further measures may be needed.