Investing in Women Code Signatories Outperform Market in Backing Female Founders for Sixth Year

Quick Summary

The 2026 Investing in Women Code report reveals that signatories now direct 32% of venture capital funding to female-led businesses, significantly outperforming the wider market's 15%. This initiative, led by the British Business Bank, aims to bridge the gender investment gap by increasing diversity within investment committees and funding teams.

How is the Investing in Women Code Closing the Finance Gap?

The Investing in Women Code serves as a critical framework for UK financial institutions to improve access to finance for female entrepreneurs. By committing to transparency and data sharing, signatories have consistently outperformed the broader equity market for six consecutive years. In 2025, 33% of venture deals from signatories involved at least one female founder, compared to just 25% in the general market.

• 32% of funding from signatories went to female-led teams in 2025.
• All-female teams received 6% of signatory investment, triple the 2% market average.
• Signatories are twice as likely to fund female founders than non-signatory firms.

Why Does Investment Committee Diversity Matter for Founders?

The report highlights a direct correlation between diverse investment teams and funding outcomes for women. Data shows that majority-female committees are nearly twice as likely to fund all-female founding teams compared to their male-majority counterparts. This structural shift in venture capital diversity is essential for removing unconscious bias from the deal-making process.

• 13% of deals from female-led teams fund all-female founders.
• 11% of deals from female-majority committees go to all-female teams.
• 57% female representation was achieved in the first cohort of the Microfunds programme.

What is the British Business Bank Doing to Support Female Entrepreneurs?

The British Business Bank is actively deploying capital to reshape the UK's entrepreneurial ecosystem. Through the £400m Investor Pathways Capital programme and a £100m pledge to the Invest in Women Taskforce, the Bank is targeting emerging fund managers to ensure a sustainable pipeline of diverse capital. These initiatives are designed to make the UK the global leader for female-led business growth.

• £130m total support deployed specifically into female-led funds.
• £90m committed to ten new fund managers via Microfunds.
• Pre-application sessions launched to boost confidence for female investors.

FF NEWS TAKE:

The Investing in Women Code is clearly moving the needle, but the fact that all-female teams still only receive 6% of signatory funding - and a measly 2% of the wider market - is an indictment of traditional VC structures. While the British Business Bank's Investor Pathways Capital is a massive step forward, true parity requires the entire industry to adopt these diversity metrics. This isn't just about equity; it's about capturing the untapped economic value of female innovation.