The fourth annual review of HM Treasury's Investing in Women Code has shown another steady increase in the number of financial services firms willing to support female entrepreneurs looking for funding.
The Code provides financial resources to female-led businesses seeking finance at the beginning of their journey whilst supporting women who are already leading the way.
Although data showed there had been little change in the proportion of female-led businesses compared to the previous year, there was positive feedback from the data collected:
- Signatories were up to 250, up 46 from the previous year and a significant rise from the founding 12 signatories in year one.
- £1.127 million in finance was requested by all-female teams in 2023, the largest amount to date.
- The market share of signatory deals continues to increase for the third year running. Up a further 5% from 42% to 47% in 2023.
- Gender diversity within the signatories committees results in better outcomes for teams with at least one female member.
There was an emphasis in this year’s report on the announcement that the Code will formally be expanding to include LPs (limited partners) and CDFIs (Community Development Finance Institutions).
This aims to create an expansion of signatories, encouraging and promoting change within the sector and hopefully leading to a better gender balance throughout.
CDFI lending has increased by 3000% in the last twenty years. The intention is to collaborate and partner with CDFI’s to create even more new opportunities for women investors.
There have been two LP sign-ups this year, British Patient Capital and Better Society Capital (formerly Big Society Capital) with priority this coming year on a push for further sign-ups.
Further priorities this year are:
- Building a sense of community with the hope that this creates a sense of recognition for signatories already leading the way and provide encouragement for those who need additional support.
- Adding to the sense of community, the Code want to recognise and spot good practices among signatories. This will be done with the assistance of the “Invest in Women Hub “a useful resource for women investors.
The Code remains committed to being at the forefront of female-led investment opportunities and they hope to “advance female entrepreneurship” to make the UK one of the leading countries for females to start a business.
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