In venture capital and growth funding, the percentage of funding going to all-female teams also increased, and the number of venture capital firms committing to the code was nearly 50% higher than the ‘last year.
But this data also highlights the changes to come and tells a clear story. Among investors and lenders, female-led businesses consistently seek and receive fewer investments and loans than male-led businesses.
Together we must change this and the work is in progress. The Women Angel Investment Taskforce is leading a new “Women Backing Women” campaign across the country, working with local organizations and groups to make angel investing more understandable and accessible for women. Emma Davies, co-CEO of Octopus Ventures, has joined the Rose Review board to stimulate new thinking among venture capitalists. We are busy recruiting more companies to commit to the code.
Above all, we know what makes the difference. Today’s report shows how important it is to ensure women entrepreneurs can make “warm” approaches to investors. Cold approaches – investment requests without recommendations from parties known or trusted by investors – are much more likely to fail. We need to create networking opportunities that allow women to build relationships that lead to funding.
We also know that code signers can create changes. For example, signatories to the Venture Capital Code are more likely to invest in companies with female founders than in the market as a whole. Yes – companies that are more committed to equality are natural supporters of the code, but many signatories are actively asking the questions that matter: how can we be accessible to female founders, who are more imaginative in seeking investments and fairer in the decisions we make?
Some of the answers to these questions will be applicable to all financial services. Explaining what ambitious female founders can accomplish and demystifying the investment business are challenges for all of us. But many of the reforms that make a real difference will not come from one initiative, but from many small changes. They will take place inside large and small organizations, in large investment committees, and in the decisions made by individual angels.
The value of the Investing in Women Code ultimately comes not from the collection of data alone, but from the direction and reform that follows. Transparency can bring about the changes that women entrepreneurs, and the UK economy as a whole, need to thrive.
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This notice was published: 2022-06-28 05:00:00