A new enterprise investment scheme (EIS) fund focused exclusively on female-founded startups has been launched in the UK, marking a major step toward addressing long-standing disparities in early-stage investment.

Angel Academe, a long-established angel network supporting women-led businesses, has joined forces with fund manager SyndicateRoom to unveil the UK’s first EIS fund specifically designed to back female founders.

The fund is designed to give investors the chance to access a high-growth asset class for as little as £10,000, investing alongside experienced angel investors. It also offers entrepreneurs the full spectrum of EIS tax advantages, including 30% income tax relief on investments of up to £1 million and capital gains deferral.

Angel Academe has spent more than a decade investing in women leaders and says the launch of this fund is in direct response to the lack of funding reaching female-founded businesses. Despite mounting evidence that women-run startups can outperform on return on investment and capital efficiency, the latest data shows they continue to receive a small fraction of available capital. In the first half of 2024, just 1.8% of equity capital went to startups founded entirely by women.

“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. 

She also noted, “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,” she added

The fund seeks to provide an immediate capital injection to underfunded but high-potential businesses. Backed by the combined experience of Angel Academe and SyndicateRoom, it presents a compelling opportunity for early-stage investors.

Tom Britton, co-founder of SyndicateRoom, highlighted the broader investment potential:
“The bottom line is that backing female founders represents a market inefficiency and untapped investment opportunity.” He added, “This fund offers investors the chance to diversify their portfolio, and we know how important diversification is when it comes to achieving strong returns.”

With its launch, this initiative not only provides a much-needed source of funding for women-led ventures but also invites investors to participate in an underserved, high-opportunity market.