Supporting female founders could unlock billions in growth
Founded by a team of industry veterans— Jim Odell, Justin Urquhart Stewart, Paul Newsham, Martin Taylor, Michael Mcdowell, and Tony Backhouse—Regionally Ventures is committed to bridging the funding gap for high-growth regional businesses across the UK. With 70p of every £1 traditionally invested in London, regional businesses represent a valuable, yet often overlooked, segment of the market.
Women often face considerable challenges in accessing the capital and support needed to grow their businesses.
Despite women-owned businesses representing 18% of UK SMEs, only a fraction of venture capital funding actually goes to female founders. In fact, in the last few years, female founders received just 2% of VC funding across all industries.
This disparity is further compounded by broader structural barriers. Female entrepreneurs frequently cite limited access to networks, mentors, and investment opportunities, as well as unconscious bias in the investment process. Even when female founders do raise funds, they usually secure significantly less than their male counterparts, which can inhibit the growth and scaling of their businesses.
So, why is this?
Unconscious Bias and Stereotyping: Many investors rely on pattern-matching, favouring founders who fit the traditional image of a successful entrepreneur—often young, male, and tech-focused. Female entrepreneurs pitching in less stereotypical industries or presenting different leadership styles may be perceived as higher risk, even though their performance often exceeds expectations.
Limited Access to Networks: Investors tend to invest in individuals within their personal or professional circles, which are predominantly male. This "homophily principle" means female founders often lack access to critical networks of potential investors and mentors, reducing their opportunities to raise capital (Knowledge at Wharton)
Perceptions of Commitment: There is often an implicit bias questioning whether female founders, particularly those with family responsibilities, will be as dedicated to scaling a business as their male counterparts. This concern about "work-life balance" disproportionately affects women, even though men report similar challenges
Industry Focus: Female founders tend to establish businesses in sectors such as retail, consumer goods, or wellbeing services, which are seen as less scalable or high-growth compared to tech startups—industries that typically attract investor attention (London Business School)
The Numbers Don’t Lie
The numbers themselves paint a stark picture:
Just 2p for every £1 invested in VC funding goes to female-founded businesses
Women are less likely to receive follow-on funding after initial investment rounds, further deepening the gap.
85% of funding rounds with at least one female founder fail to close
However, despite these hurdles, the potential economic impact of increasing female entrepreneurship is massive. According to the 2019 Alison Rose Review, if women started and scaled businesses at the same rate as men, it could add up to £250bn to the UK economy.
Some good news on the horizon:
Rachel Reeves, the UK Chancellor, has recently announced a £250 million boost to support female founders, aiming to close the gender funding gap. This complements the progress highlighted in the Investing in Women Code, which shows that 32% of venture capital deals from signatories went to female-founded companies, compared to 28% across the market. Additionally, the Women in Innovation Awards for 2024/25 offers £75,000 grants to women-led projects across the UK, providing crucial support in the form of capital, mentorship, and business development.
Regionally Ventures - We’re Committed to Backing More Female Founders
At Regionally Ventures, we recognise the specific challenges female founders face, particularly those outside of London. Our mission aligns with the ongoing push to provide greater funding opportunities to women-led businesses, ensuring they have access to a national network of credible investors.
The Regionally Way is built on supporting businesses in the UK’s regions, offering them visibility and connections to the right investors. With recent initiatives aimed at increasing funding for women entrepreneurs, we are well-positioned to help female founders access the capital they need to scale. We’ve set a goal to ensure that 30% of the businesses we support by 2026 are female-founded. Additionally, we aim to increase the proportion of female-led deals by 100% over the next three years, providing tailored support, access to capital, and connection to regional investors who value diversity.
By working closely with women founders, we can guide them through the complexities of the investment landscape, ensuring they seize the opportunities that are now becoming more available. Our commitment remains to provide the necessary resources and connections to ensure that all high-potential businesses, especially those outside of London, have equal access to investment.
Partnering with Regionally Ventures for Growth
1. We Understand the Challenges
Women entrepreneurs consistently face barriers when raising capital, including unconscious bias, limited access to networks, and lower funding amounts compared to male founders. At Regionally Ventures, we understand these challenges and are committed to helping female founders overcome them through tailored support and access to regional investors who value diversity.
2. Access to the Right Networks and Investors
One of the most significant barriers for female founders is a lack of access to the networks that their male counterparts typically enjoy. We’ve built strong relationships with a national network of investors, including a growing number of female angel investors. By working with Regionally Ventures and attending our recommended events, female founders can connect with the right people who are open to investing in diverse and high-potential businesses.
3. A Holistic Support System
At Regionally Ventures, we are committed to providing female founders with more than just capital. We offer direct access to female investors, mentors, and advisors who have successfully navigated the investment landscape themselves. These connections ensure that you’re supported by those who understand the specific challenges you face and can provide practical advice on overcoming them. Whether it’s through pitch refinement, strategic guidance, or introductions to key networks, we ensure you have access to a community of female leaders and investors who can truly help you succeed.
4. We Align with National Initiatives
With the UK government’s recent commitment of £250 million to support female founders, there is significant momentum to address the funding gap. At Regionally Ventures, we align with these initiatives and are working closely with several women-led businesses to help them access available grants, awards, and funding schemes.
5. Your Success Is Our Priority
Our mission is to help female founders scale their businesses by providing the tools, connections, and financial support they need. We’re not just focused on transactions; we’re here to help your business grow in a sustainable, impactful way. Even if you're at an early stage, we’re here to help you navigate the complexities of funding, offering hands-on support and advice at every step. At Regionally Ventures, we believe in your potential and will be with you through every challenge, helping you build a business that will truly thrive.
If you're a female founder ready to scale your business and access the support, networks, and capital you deserve, we're here to help. Get in touch to explore how we can work together.