Female entrepreneurs in the UK have received a significant boost with the launch of a new £250 million investment fund aimed at addressing the gender funding gap in business. The government-backed initiative, unveiled on Monday, is designed to support businesses that have at least one female founder.

The fund, named ‘Women Backing Women’, was introduced by the Invest in Women Taskforce, which was established earlier this year in March with the goal of becoming one of the largest grant providers globally for female-led businesses. Major financial institutions, including Barclays and Aviva, have pledged their support to the initiative, ensuring that the fund has the necessary backing to make a substantial impact. However, the Taskforce has made it clear that the money will be managed by female investment decision-makers, aiming to create a more balanced and inclusive funding landscape.

Debbie Wosskow, Co-Chair of the Invest in Women Taskforce, spoke out about the longstanding issues female entrepreneurs and investors have faced. She said, “Female entrepreneurs and investors have been sidelined for too long – they are two sides of the same coin. It’s time we rebooted the system and gave female investors the power to drive change.”

The initiative has received praise from key government figures, with Reeves, the UK’s first female Chancellor of the Exchequer, highlighting the importance of the funding. She commented, “It is a huge responsibility to sit in the Treasury as the first female Chancellor of the Exchequer and be able to use my position to improve life for women across the UK. By backing the [Taskforce] we can establish one of the world’s largest dedicated investment funding pools for female-powered businesses, helping grow our economy.”

In a bid to ensure the fund’s success, the Invest in Women Taskforce is now calling on fund managers to step forward and play a part in overseeing the management of the Women Backing Women fund. This call to action is a critical part of the effort to ensure that the fund is deployed effectively, with a focus on supporting women-led businesses and fostering female entrepreneurship across the UK.

With this groundbreaking initiative, the Taskforce hopes to create lasting change in the business world by offering women the financial backing they need to grow and scale their businesses, while also encouraging more female investors to take on key roles in the funding process.