Investors backing women entrepreneurs outperform wider market

For the sixth consecutive year, signatories of the Investing in Women Code have directed a greater proportion of funding to businesses founded by women entrepreneurs than the wider market.

The Code’s annual report also found that its signatories are continuing to outperform the wider market, reflecting that backing women in business is the most economically sound thing to do.

The Investing in Women Code is a government-backed commitment to improve access to finance for women-led businesses. It 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.

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.

Alongside the Investing in Women Code, other action to diversify the investment market includes 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.”