An angel network that has been investing in women leaders for over ten years has launched the UK’s first female founder focused enterprise investment scheme (EIS) fund in partnership with fund manager, SyndicateRoom.
Angel Academe’s fund will offer early stage investors the opportunity to take part in a high-return asset class, for as little as £10,000, alongside experienced angels.
Entrepreneurs will also be able to access the full range of EIS tax benefits, including 30% income tax relief on up to £1m invested, and capital gains deferral.
Studies by Boston Consulting Group and the Kauffman Foundation have shown that women-run businesses are more capital efficient and can deliver higher return on investment (ROI) than male-founded startups.
However, there remains a significant gap in the funding that women receive. In the first half of 2024, all-female founded businesses secured just 1.8% of equity capital.
The fund is looking to close that gap by providing female founders with the necessary capital to grow and scale.
“Too often, efforts to address the funding gap have been focused on words rather than actions. In order for women to scale their businesses, they need money, not mentoring,” said Sarah Turner, co-founder and CEO of Angel Academe.
“This fund aims to put capital directly into the hands of female founders building innovative businesses. It’s not about pledges – it’s about action.
“This is just the start and we aim to grow this initiative into a larger, annual fund to support even more innovative companies whilst addressing the funding gap in the years to come.”
Tom Britton, co-founder of SyndicateRoom, added: “The bottom line is that backing female founders represents a market inefficiency and untapped investment opportunity.
“This fund offers investors the chance to diversify their portfolio, and we know how important diversification is when it comes to achieving strong returns.”