The numbers are in: female-led companies in the UK don’t merely do as well as their male-led counterparts; they do better. On average, companies led by women generate £10.4 million in revenue, compared to male-led companies who clock in at just £6.1 million. This according to Women Entrepreneurs in the UK: Key Statistics and Facts 2025 from money.co.uk.
Unfortunately, if you look at the numbers for venture capital and funding, the numbers tell an entirely different story. In 2024, a mere 2% of UK equity investment went to all-female founder teams. These dismal numbers make for an appalling mismatch between performance and investment, which raises the question: if female-led businesses consistently perform better than male-led companies, why don’t the funding statistics match up?
The Funding Gap: What’s Holding Women Back?
As you might expect, the reasons behind this disparity are manifold. Nor are they merely financial; they’re also cultural, psychological, and structural. Women encounter specific obstacles that men, in most cases, simply do not.
1. Investor Bias
There’s no denying it: the world of venture capital and angel investing is dominated by men. There’s a tendency among investors to back entrepreneurs who remind them of themselves, also known as the “affinity bias.” In an already male-dominated field, this creates a self-perpetuating cycle that leaves female founders out in the cold and makes it difficult to attain the same level of interest.
2. Smaller Business Networks
The gender disparity also applies to business networks, which are the lifeblood of the investment world. A good network is crucial to meeting the right backers and getting favorable introductions to key players. Male entrepreneurs often benefit from the proverbial “old boys’ club,” which women have not had the same access to, historically speaking.
3. Limited Financial Literacy
Not everything about this issue is about gender politics, however. Some female entrepreneurs, especially if they don’t have formal business training, could lack the level of financial literacy that investors have come to expect. This doesn’t necessarily speak to their business acumen — it just means they may struggle with speaking the same language as the investors in terms of things like ROI projections and valuation.
4. Confidence in Asking for Funding
Another factor that leads to a disparity in numbers: women simply tend to ask for less money when pitching to investors. Whether it’s lower confidence in their own valuations or cultural pressures, it can often give investors the wrong impression that the business has smaller growth potential than it actually does.
Meeting These Funding Challenges
So what can be done to help close this gap? Change won’t happen overnight, but there are a few strategies female founders can use to help get the funding they need.
Have a Strong Plan
This might seem like it goes without saying, but it’s worth reinforcing: a strong, well-researched, investor-ready business plan can make all the difference in whether or not you get funding. This means a solid marketing and sales strategy, informed financial projections, and a defined exit plan.
Target the Right Investors
Knowing who to pitch to is almost as important as knowing how to pitch. Not every investor is the right one! Look for funds and networks with a track record of backing female-led ventures, or are already engaged with a female-founded business.
Invest in Advanced Education
Cultural and societal barriers are almost certainly out of your control — but your financial education is not. Seeking out further education can be a game-changer for female founders. An online master of business administration can be a cost-effective way to gain a deeper understanding of investor expectations and refine your industry knowledge — and it’s something you can do while still running your business.
Learn to Pitch with Confidence
Don’t underestimate the power of a solid, skillful delivery when it comes to pitching. Working on your body language, eye contact, and tone of voice can make a huge difference to investors when you’re in the room.
Explore Alternative Funding Options
Finally, if you’re having difficulty with traditional funding vectors, you might consider alternative funding options. Crowdfunding platforms such as Crowdcube or Seedrs allows you to raise money from a wide pool of supporters. Grants and angel investors, such as the UKBAA’s Women in Angel Investing initiative, can also be a viable option.
Build Networks and Find Opportunities
Networking opportunities for women can be rarer than those for men — but that doesn’t mean they aren’t out there. There are almost one million women-led companies in the UK, and the right connections can lead to introductions, mentorship, or even outright investment. Look for female entrepreneur groups, seek out a mentor, or use specialist networks designed to support women business owners.
The statistics for female-owned businesses in the UK are frustrating, but it’s not hopeless. The numbers don’t lie — women-led companies simply perform better, and with some hard work and dedication, women founders can help shift the balance in their favour.