Ignoring Female Entrepreneurs means investors miss valuable opportunities

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Ignoring Female Entrepreneurs means investors miss valuable opportunities

01 Jul 2019

According to The Telegraph, last year, female-led businesses took just 1p per £1 of all startup funding in the UK. In part, the issue is that there are not as many women starting businesses as men; currently, only a third of entrepreneurs in the UK are women.

Some commentators say that these numbers evidence the fact that women tend to have less access to strategic partners and capital. Yet, this is despite current data which suggests that in fact, by ignoring female entrepreneurs, investors risk missing out on some valuable opportunities.

An article by Crowdcube reports that one of the central reasons VCs are less likely to invest in women is because they tend to start more ‘lifestyle’ businesses instead of high-growth tech firms. At the moment, tech-businesses such as Monzo, Deliveroo and Graphcore are by far the most alluring to VCs and private investors, as they potentially offer the highest rewards.

However, a recent report by the Entrepreneur’s Network indicates that female entrepreneurs generate 20% more revenue, with 50% less capital investment than their male counterparts.

The report from Crowdcube also goes onto evidence that female entrepreneurs are less likely than their male counterparts to see a company go under.

See the full report here.

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