Annual Investing in Women Code report
The government has published the annual report for the Investing in Women Code, which now has 250 signatories. This Code aims to address the lack of investment in female entrepreneurs across all areas of financial services and the investment landscape. It has also expanded to include Limited Partners and Community Development Finance Institutions (CDFIs). Notably, the Investing in Women Code now accounts for 40% of UK Business Angels Association angel investment groups and 47% of venture capital deals.
The Investing in Women Code backs UK female founders
Animal Health Angels has been a signatory to The Investing in Women code since its inception. Recently the Department for Business and Trade has published its annual Investing in Women Code which finds that venture capital fund managers who have signed up to the Code are more likely to invest in female founders. 32% of all venture capital deals made by Investing in Women Code signatories were in female-founded companies last year, compared to the market average of 28%, revealed in the latest report published today. This is the fourth year in which Investing in Women Code signatories have outperformed the wider market.
The report also shows that Investing in Women Code signatories who consistently report data year-on-year perform better in deals to teams with all-female founders than those who do not. However, there is still a long way to go, with the average amount of angel investment in all-female teams 50% lower than the amount invested in mixed-gender teams and all-male teams
The Investing in Women Code was founded in 2019 as a landmark government-led initiative in response to the Rose Review’s findings that a lack of funding was one of the most significant barriers to women seeking to effectively scale a business. Investing in Women Code Partners include the British Business Bank, British Private Equity & Venture Capital Association (BVCA), UK Business Angels Association (UKBAA), UK Finance, and Responsible Finance. Code Partners are responsible for managing data collection and reporting, on behalf of the government.
Over 250 organisations have now signed up to the Code, showing the growing numbers of lenders and investors committed to increasing the levels of finance directed towards women-led businesses. This report shows that IWC signatories are leading the way in addressing the finance gap between male and female entrepreneurs. Equal access to finance will boost the potential of female founded businesses and deliver on this Government’s priority to grow the economy.
Other key findings from the Investing in Women Code’s fourth annual report show that:
- The market share of signatories’ deals continues to rise for the third year in a row, as the number of signatories increases.
- The 30 new venture capital signatories reporting for the first time in 2023 invest a higher share of deals to teams with at least one female founder compared to all signatories and the wider market, with 42% of deals going to teams with at least one female founder compared to 28% in the wider market.
- 32% of all venture capital deals made by Investing in Women Code signatories were in female-founded companies last year.
- There has been a rise in the number of pitch decks and funding requested to angel groups from all-female teams.
- Warm introductions continue to be the most successful in securing funding for all teams.
- Angel groups with more than 15% women investors made 57% of their investments in teams with women founders.
- Diversity within signatories’ investment committees improves outcomes for teams with at least one female founder.
- There is an increasing number of female angel investors in the UK, with three angel signatories consisting entirely of women angel investors, triple the number of last year’s cohort.
Jenny Tooth OBE, Executive Chair of the UK Business Angels Association, said:
“With an increasing number of our Angel groups signing up to the Code, including a growing number of groups with a strong proportion of women angels, we can see the impact on women founders seeking and finding angel investment across the UK. Signatories are attracting an increased level of women founders into their pipeline, whilst, for the first time, deals in women founders have surpassed the number of deals in male founders accessing investment, achieving over half the deals and share of investment from the Angel group signatories.
The results from signing the code are clear to see, but we have much more to do to enable all women teams to access their full share of investment. We will be working to ensure that many more of our Angel groups identify the benefits of being part of the Investing in Women Code community in the year ahead.”
The full report can be accessed by clicking here.