A recent report by Beauhurst has revealed that women-led startups in the UK only secured 3.5% of funding in 2023.
This is a stark contrast to the 85.1% of funding that male-led startups received, with the remaining 11.4% going to mixed-gender teams.
The report highlights the ongoing issue of gender inequality in the UK tech industry, with female entrepreneurs struggling to secure the funding they need to grow their businesses.
The disparity in funding for women-led startups is not a new issue, with previous reports highlighting the challenges that female entrepreneurs face when it comes to securing investment.
Despite the fact that women-led startups are on the rise, with over 140,000 all-female founded companies created in the UK last year alone, the lack of funding available to them is a major barrier to growth.
The Beauhurst report serves as a reminder that there is still a long way to go when it comes to achieving gender equality in the UK tech industry.
While there are a number of initiatives in place to support female entrepreneurs, more needs to be done to ensure that women-led startups have the same opportunities as their male counterparts.
In an exciting development for the logistics industry, Relay, a London-based startup, has successfully secured a substantial €9.2 million in seed funding. The investment, aimed at transforming the UK’s full-stack delivery network, signifies a considerable vote of confidence from investors…
UK-based tech rental startup Ooodles has recently secured a staggering €11.2 million in funding, marking a significant milestone for the innovative company. Founded in 2021 by industry veteran Leonardo Poggiali,…
London-based Eilla AI has secured €1.4 million in seed funding to transform financial decision-making in private markets. The generative AI platform is designed to assist M&A, venture capital (VC), and…
Women-led startups in the UK only secured 3.5% of funding in 2023, compared to 85.1% for male-led startups and 11.4% for mixed-gender teams.
Despite the rise of all-female founded companies, the lack of funding available to women-led startups remains a major barrier to growth.
The Beauhurst report highlights the ongoing issue of gender inequality in the UK tech industry and the need for more initiatives to support female entrepreneurs.
The Current State of Women-Led Startups in the UK
The Funding Gap
According to a recent report by Beauhurst, women-led startups in the UK secured just 3.5% of the total funding invested in 2021. This is a significant disparity given that women-led startups make up around 20% of all new businesses in the UK.
The report also found that women-led startups received an average of £1.5m in funding, compared to an average of £2.3m for male-led startups.
One of the main reasons for this funding gap is the lack of representation of women in the venture capital industry.
Only around 13% of decision-makers in UK venture capital firms are women, which means that many women-led startups struggle to secure funding from these firms.
The Role of Fintech in Women-Led Startups
Despite these challenges, fintech has emerged as a key driver of growth for women-led startups in the UK. Fintech firms are more likely to be led by women than traditional financial institutions, and they are also more likely to invest in women-led startups.
In fact, according to a report by Innovate Finance, women-led fintech startups in the UK raised a record £720m in funding in 2020.
This represents a significant increase from the £169m raised in 2019, and it suggests that the fintech sector could play a key role in closing the funding gap for women-led startups in the UK.
Frequently Asked Questions
What percentage of UK funding goes to women-led startups?
According to a report by The Entrepreneurs Network in partnership with Barclays, female-founded startups secured just 3.5% of funding in 2023, compared to 85.1% of male-led startups. This indicates a significant gender disparity in the UK startup scene.
How do female-led tech companies perform in the UK?
Despite the funding gap, female-led tech companies in the UK have been found to perform better than their male-led counterparts. According to a report by Beauhurst, female-led tech companies had a higher survival rate and generated more revenue than male-led tech companies.
What are some successful UK startups founded by women?
There are many successful UK startups founded by women, including Starling Bank, founded by Anne Boden, which has raised £75 million in funding, and Bloom & Wild, founded by Aron Gelbard and Dr. Sachin Dev Duggal, which has raised £7.5 million in funding.
What challenges do women founders face in the UK startup scene?
Women founders in the UK startup scene face several challenges, including difficulty accessing funding, implicit bias, and a lack of representation and support. These challenges can make it difficult for women to succeed and thrive in the startup world.
What initiatives exist to support female entrepreneurs in London?
There are several initiatives in London aimed at supporting female entrepreneurs, including AllBright, which provides funding and support for female-led businesses, and Blooming Founders, which offers a co-working space and community for female entrepreneurs.
What is the current ratio of male to female entrepreneurs in the UK?
According to a report by GEM Global Entrepreneurship Monitor, the ratio of male to female entrepreneurs in the UK is 1.6:1, indicating that men are still more likely to start their own businesses than women. However, there has been a gradual increase in the number of female entrepreneurs in recent years.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.