Signatories of the UK government-backed Investing in Women Code have secured a higher proportion of funding for female-founded companies than the broader market for a sixth consecutive year. The annual progress report reveals that more than 330 financial institutions have signed the agreement, rising from an initial pool of 12 organisations when the framework launched in 2019 following the Alison Rose Review of Female Entrepreneurship. Recent additions in 2026 include major names like Nationwide and Innovate UK.
According to the newly published data, venture capital financing from code signatories to businesses with at least one female founder increased to 32% in 2025, moving up from 27% in 2024. This contrasts with the wider UK equity market, where only 15% of overall investment value went to mixed or female-led founding teams. Additionally, signatories directed 33% of their venture capital deals to teams containing a female founder, compared to 25% across the broader open market. All-female teams captured 6% of funding from signatories, outperforming the standard market rate of 2%.
The progress report also connects executive diversity with improved investment outcomes. When women make up the majority of an internal investment team, 13% of final investment committee decisions backed all-female founding teams. For majority-male teams, that figure falls to 7%. Similarly, signatories with majority-female investment committees directed 11% of their deals to all-female teams, compared to 8% for majority-male committees.
Blair McDougall, Minister for Small Business and Economic Transformation, said: “For the sixth year in a row, Investing in Women Code signatories have outperformed the wider market, showing that backing female founders is good for business and good for growth. Yet women-led businesses still face greater barriers to funding and growth. That is why the Code matters – helping more women start, scale, and succeed, while unlocking talent, creating jobs and strengthening the UK economy.”
The British Business Bank is actively addressing the wider ecosystem imbalance through its £400 million Investor Pathways Capital programme, which aims to distribute 50% of its capital to female investors. The bank recently allocated £90 million from this scheme across ten new fund managers under its Microfunds branch, with female partners comprising 57% of the selected cohort. Furthermore, the bank handles a £100 million pledge for the Invest in Women Taskforce, which deployed more than £70 million of its total £635 million funding pool in its opening year. This includes a £30 million anchor commitment into the “Women Backing Women” Fund of Funds, which has completed its initial capital injections into three female-led venture funds.
The report highlights real-world business impact through case studies like Kate Heath, founder of online neurodivergent school Gaia Learning, who was named Great British Entrepreneur of the Year in 2025. After entering the Baltic Ventures Accelerator in 2023, Heath secured an initial £50000 pre-seed investment alongside mentorship, which eventually unlocked more than £600000 in follow-on finance.
Kate Heath, CEO and founder of Gaia Learning, said: “Securing funding is not easy, whichever path you take, and I believe it’s one of the most challenging parts of building a business. But I’ve learned that when you stop seeing it as just raising money and start seeing it as finding people who genuinely believe in your mission, it becomes more rewarding. I’ve been incredibly fortunate because we work in education and support children with SEND, people connect with what we’re trying to achieve on a personal level. The funding has enabled us to grow, but just as importantly, it’s brought a community of people who share our belief that every child deserves an education that works for them.”
To assist prospective fund managers, the British Business Bank is launching interactive pre-application drop-in sessions targeted at emerging female investors from various professional background specialisms.
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.”
