Recent data shows that women-led startups’ record VC share has been climbing in the UK. Figures from Dealroom, published in partnership with the British Business Bank, show female-founded companies capturing a growing proportion of venture capital investment. After years of stubbornly low numbers, the needle is finally moving — though not as fast or as far as many would like.

The Dealroom analysis tracks UK funding rounds involving female founders. In 2021, teams with at least one female founder received approximately 8.9% of total UK VC funding (Dealroom/British Business Bank, 2021). By 2023, this proportion had risen to around 15% (Dealroom/British Business Bank, 2023). That is the most significant year-on-year improvement since tracking began in 2019. But let us be clear: 15% still means 85% of VC capital flows to teams without a single female founder.

What the Data Shows

The Dealroom analysis covers equity rounds from pre-seed through to Series C and beyond. It separates companies into three categories: all-female founding teams, mixed-gender founding teams, and all-male teams.

Several findings stand out:

• Teams with at least one female founder received approximately 15% of total UK VC funding in 2023, up from 8.9% in 2021 (Dealroom/British Business Bank, 2023).
• Fully female-founded teams continue to receive a markedly smaller share — roughly 4–5% of total funding. This gap reveals an uncomfortable truth: investors appear more comfortable backing women when a male co-founder is in the room.
• Mixed-gender founding teams account for the majority of funding to teams with any female representation, suggesting that diversity at the top table helps but does not solve the underlying problem.
• Deep tech and climate sectors have seen growing interest in women-led companies, with health tech and climate tech attracting a disproportionate share of female-founded rounds.

Louis Taylor, Chief Executive of the British Business Bank, said the data suggests targeted interventions — from dedicated funds to transparency commitments — may be starting to drive measurable results.

Why VC Share for Women-Led Startups Is Rising

Three converging factors help explain why women-led startups’ record VC share has improved.

The first is the maturation of funds designed specifically to back female founders. Ada Ventures, which targets underrepresented founders at pre-seed and seed stage, has raised multiple funds and built a portfolio that visibly prioritises founders others overlook. Angel Academe, the UK’s leading angel syndicate for female-founded tech companies, has grown its membership and deal flow steadily over the same period. Both have received backing through the British Business Bank’s Enterprise Capital Funds programme.

The second factor is policy pressure. The UK government’s Investment in Women Code, launched in 2023, now has over 200 signatories including most major UK VC firms (Investment in Women Code, 2023). Signatories commit to tracking and publishing the gender breakdown of their investment portfolios. This transparency creates competitive pressure — when your peers are publishing diversity data, silence becomes conspicuous.

The third factor is a broader shift in where capital flows. Climate technology, health tech, and AI applied to healthcare — sectors where women founders are well represented — have attracted growing VC interest. The Dealroom report notes that a significant proportion of women-led funding rounds fall within climate or health sectors, meaning female founders in these spaces are benefiting from a tailwind that has little to do with gender-specific interventions.

The Funds Driving the Change

Understanding which funds are actively backing female founders matters for any woman currently raising capital. Here are some of the key players:

Female-Focused VC Funds

Ada Ventures backs founders from underrepresented backgrounds at pre-seed and seed stage, with cheque sizes typically between £250,000 and £2 million. Angel Academe operates as an angel syndicate investing in tech startups with at least one female founder, writing cheques from £100,000 to £500,000. Both have received support through the British Business Bank’s Enterprise Capital Funds programme.

Several other funds, while not exclusively female-focused, have built strong track records of backing women founders. The key for founders is to research portfolio companies: if a fund has backed three or more female-founded businesses in the past 18 months, they are likely a genuine prospect rather than a box-ticker.

Angel Networks and Crowdfunding

Beyond institutional VC, angel networks focused on women founders have grown significantly. Angel Academe continues to expand its active membership. Regional networks such as Women Angels of the North are extending access to capital beyond London. Crowdfunding platforms have also played a role: Crowdcube reports that a growing proportion of successfully funded campaigns have at least one female founder.

How the UK Compares Globally

The UK’s performance compares favourably with the European average. According to Dealroom data, the UK has consistently outperformed the European average in VC funding to female-founded teams (Dealroom, 2024).

Compared with the United States, the UK has been narrowing the gap. US data from PitchBook shows female-founded companies receiving around 17–18% of total VC funding — ahead of the UK, but not by as much as one might expect given the size difference between the two markets (PitchBook, 2024).

HM Treasury commissioned the Rose Review, which set a target of £1 billion in VC funding for female founders by 2030. Recent data suggests the UK is making progress toward this target, though the Review’s broader goals around scaling businesses and closing the enterprise gap remain ongoing. For more on the wider picture, see our facts and figures on women in business.

What This Means for Female Founders Raising Capital Now

The headline numbers are encouraging, but they do not mean every woman founder will find fundraising straightforward. The concentration of funding remains a real concern: a significant proportion of capital flows to a small number of high-profile companies. London-based companies continue to absorb the majority of funding, leaving founders in other regions competing for a smaller pool.

For founders currently preparing to raise, several practical takeaways emerge from the data:

1. Target the right funds. Ada Ventures, Angel Academe, and other female-focused funds are actively writing cheques. Research their portfolio companies and investment criteria before approaching them. If you are exploring non-equity options too, see our guide to grants for women in business.
2. Position within growth sectors. Climate tech, health tech, and AI applied to healthcare have attracted disproportionate funding. If your business sits in or adjacent to these sectors, make that positioning explicit in your pitch materials.
3. Check Code signatories. The Investment in Women Code has over 200 signatories. Approaching firms that have signed up means they already track and report on gender data — suggesting a genuine commitment to backing female founders rather than performative allyship.
4. Look beyond London. Regional funds in Manchester, Edinburgh, and Bristol are increasingly active. The British Business Bank’s regional investment programmes have directed more capital outside the capital in recent years. Women Angels of the North and similar regional networks are worth investigating.
5. Be honest about team composition. The data shows mixed-gender founding teams have captured a significant share of growth. This is not an argument for adding a male co-founder to satisfy investor bias. It is an observation that reveals where the market currently sits — and founders deserve to know that before they raise.

The Road Ahead

The data represents genuine progress, but we should not confuse progress with success. Fully female-founded teams still receive roughly 4–5% of total UK VC funding. Most capital flows to a small number of companies and to London. Many women founders outside the capital still struggle to access institutional investment. The Rose Review’s £1 billion target remains aspirational rather than assured.

The British Business Bank has indicated it will continue to publish updated targets, building on the Rose Review framework. Industry observers expect a new focus on regional distribution and more support for female founders through later-stage rounds, where the drop-off rate remains steepest.

Still, the trajectory is unmistakable. Women-led startups’ record VC share has moved from single digits to a growing proportion of total UK venture capital in recent years. For female founders building businesses right now, the funding landscape looks more accessible than it has been in the past decade — even if it remains far from equitable. Explore our funding resources for women in business to learn more.