The growing financial clout of Britain’s female investment community was revealed today in a new report which found that over the past 10 years, women have financed 4,000 companies in deals worth more than £2.3 billion.
According to research by the UK Business Angels Association, nearly 25% of women-founded companies were backed by an army of more than 5,000 female investors, significantly more than the 19% of women-founded companies generally supported by the United Kingdom. community of angel investors.
Executive Chair of the UK Business Angels trade association, Jenny Tooth OBE, told the Standard: “Over the past 10 years, female angel investors have made a very important aspect of the UK economy.
“Women have a very significant number of entrepreneurs in their portfolio and this will really impact the number of female founders in the UK.”
62% of female angel investment has been in London and South East England, the report found, while only 14% of angel investors in the UK are women.
“A big part of our work has been to really change that landscape; if you change that mix of investors in the room, there will be more understanding, more empathy, but also who comes in – the pipeline – will change drastically,” Tooth said.
The survey follows the publication of the government-sponsored Rose Review on female entrepreneurship, which found that fewer British women are choosing to become entrepreneurs compared to Australia, the US and Canada, while spending around £250 billion in the UK economy. could be added if women started. and companies scaled up at the same rate as men.
Tooth said a plethora of male-only investment groups prevented many would-be women from entering the industry, as did some women’s tendency to keep their investment decisions and contacts secret.
“Many women who do invest don’t necessarily share knowledge of the networks they invest in, unlike men, who tend to talk about all their investment decisions in the pub.”
“Many of the women said their financial advisers don’t talk to them about angel investing, assuming they are risk averse and instead encourage them to invest in asset investments.”