Rachel Reeves has backed the Invest in Women Taskforce after a new report revealed that the number of female founders who received private equity investment this year has dropped.
The taskforce, which is a government-backed initative tasked with closing the UK’s female funding gap, today revealed that out of a total £8bn equity investment in the first half of the year, only £145m was given to female founders.
This means female-led businesses received just 1.8 per cent of private equity investment, which is down from a total of 2.5 per cent last year.
The report, which collected data from Beauhurst, revealed that in comparison, the total equity investment given to all male teams was up six per cent in the first half of the year, reaching a total of £6.92bn.
“We are heading in the wrong direction, and this trend isn’t simply unjust, it’s a monumental
missed opportunity,” Debbie Wosskow, serial entrepreneur and co-chair of the Invest in Women Taskforce, said.
“We must fight to break the status quo, and with the first female Chancellor backing us, I’m more optimistic than ever that we will. It makes economic sense,” Wosskow added.
Reeves, who publicly announced her support for the taskforce today, said it was her responsibility to use her historical position to help “improve life for women” across the UK.
“By backing the Invest in Women Taskforce we can establish one of the world’s largest dedicated investment funding pools for female-powered businesses, helping grow our economy,” Reeves added.
Previous initiatives, such as the 2022 Rose Review of Entrepreneurship, have found that if women started and scaled businesses at the same pace as men, it could add up to £250bn in economic benefits.
“These results underscore the challenge we have ahead to break down barriers facing female entrepreneurs – but it’s possible with the right solution,” Hannah Bernard, Head of Business Banking at Barclays and co-chair of the Invest in Women Taskforce, said.