The Gender Index 2025: progress, but the funding gap widens

Jana Hlistova

Mar 09, 2025

The Gender Index 2025 Report is out, and while female entrepreneurship in the UK is growing, access to capital remains a persistent roadblock.

Key Findings

More women investing
Women now make up 34.3% of UK angel investors, more than doubling from 14% in recent years.
Less funding for female founders
Despite more women investors, investment in female-led startups dropped from 21.6% in 2023 to 18.6% in 2024—a concerning reversal.
Follow-on investment gap
Less than 40% of female angel investors reinvest, compared to nearly 45% of male investors. Without reinvestment, female founders struggle to secure follow-on funding.
The disconnect
More female investors should translate into more funding for female-led businesses—but the data tells a different story. The capital isn’t flowing where it’s needed most.

The barriers holding female founders back

Institutional capital still skewed
Corporate Venture Capital remains heavily male-dominated, with female founders securing just 10.1% of this funding.
Debt financing remains a challenge
Only 14.2% of female-led businesses secured debt financing in 2024, compared to 61.1% of male-led businesses.
Fast-growth companies still a male majority
Only 10.6% of fast-growth companies were female-led in 2024 (down from 12.4% in 2023). The highest proportion of female-led fast-growth businesses was in Northern Ireland (14.2%) and Wales (13.5%).
By 2030, female-led fintech sector growth expected to 11.5%.

The economic opportunity

Female-led businesses outperformed on turnover growth (24.6%), exceeding male-led businesses (21.6%).
Closing the gender funding gap could unlock £250 billion in economic growth for the UK.

What next?

More reinvestment – Encouraging women angels to reinvest in female-led businesses. And encouraging more male angels to back female founders.
Stronger networks – Expanding investment pipelines and funding pathways.
Policy incentives – Tax reliefs and matched funding schemes to drive capital towards female founders.

“…Without targeted intervention, gender disparities in company leadership will persist, particularly in capital-intensive and traditionally male dominated sector…”

The Gender Index Report, 2025.

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