Just 14% of active angel investors in the UK are women. The obvious question is: why is this figure so low?
But when I look at the data, I’m equally concerned by the wider economic impact.
The statistics suggest that this imbalance is holding back female entrepreneurs and wider business growth in the UK. While overall participation has improved, 14% is still far too low, not least because greater female involvement in early-stage investment circles improves access to capital and the growth prospects of female-led businesses.
Fundraising as a female founder is no picnic, and part of the problem is that decisions about capital allocation are still mostly made by men. Women-led businesses currently receive just 2% of venture capital, falling to 0.02% for black female founders, while 80% goes to all-male teams.
This figure has refused to budge for a decade. Of particular concern to me right now is that only 3% of AI deals go to all-female founder teams. A significant change to the status quo won’t just benefit female founders – the UK will reap the rewards for generations to come.
Creating supportive, informative networks can encourage more women to become angel investors and help close the gap. At Women Who Scale, we’re proud to work with organisations like the UK Business Angels Association and XX Invest, who are giving more women the confidence, knowledge and connections they need to begin investing.
This matters for female founders too, with a quarter describing raising capital as complex and time-consuming. Bringing more women into angel investing can only be positive in the push for more accessible funding.
The growth opportunity
In 2019, the Rose Review found that up to £250 billion of new value could be added to the UK economy if women started and scaled new businesses at the same rate as men. Today, that figure is estimated to stand closer to £310bn.
This is an opportunity that should raise eyebrows, particularly as the new Prime Minister weighs up how to deliver ‘good growth in every postcode’.
I’m grateful for the growth partners and ecosystem allies working with Women Who Scale to create conditions that enable women to successfully start and grow businesses without having to scramble for support.
The potential rewards extend far beyond female business leaders themselves. Female-led companies grew turnover significantly faster across the UK in 2024 and 2025 than male-led companies or those with mixed leadership teams. Greater support for female-led businesses can help unlock stronger growth and business performance across the UK, provided more women can access the capital and strategic support needed to launch and scale.
There are signs that the UK is taking greater stock of this opportunity. More than 330 organisations have now signed up to the Investing in Women Code, a government-backed commitment to improve access to finance for women-led businesses.
For the sixth year in a row, these organisations, including UK retail banks, venture capital firms, angel investors and lenders, have outperformed the wider market. Backing female entrepreneurs isn’t about meeting a quota; it’s a strategic economic decision.
Taking it a step further
The question then becomes: what’s the most effective lever we can pull to direct more capital towards female entrepreneurs and their businesses?
Female investors are twice as likely to back women, so it seems to me that there’s a fairly straightforward answer, especially with the great wealth transfer putting more wealth into the hands of women. We need more women in early-stage investment circles, which is why platforms like Women Who Scale have such a critical role to play in addressing the current imbalance.
The importance of these networks and communities can’t be overstated. Women need spaces and role models to support them as they enter a notoriously challenging industry. Without these networks, women are less likely to consider angel investing and less capital is likely to reach ambitious female entrepreneurs.
Groups like the Invest in Women Taskforce show what can be achieved when belief and momentum build. The government-backed group has already channelled more than £115 million through its funding pool to women-led and mixed fund managers and businesses.
Beyond this, more needs to be done to challenge the perception that angel investing is a male-dominated industry. The more noise we can make around women entering and succeeding in the sector, the more likely it is that other women will see it as a realistic option.
Despite the compelling research and headline statistics around the importance of diversity in leadership teams, at board tables and across the early-stage investment ecosystem, women remain heavily underrepresented in angel investing, and high-potential female-led businesses are not competing on a level playing field with male-led businesses.
Communities and in-person events are key to bringing more women into the industry.If we can make the required changes, the ultimate reward will be unlocking growth that has until now remained untapped.
SCALE Manchester takes place at Freight Island on 25 November 2026. For more information, visit https://scaleevents.