The British Business Bank has launched a bold £7 million initiative to support women-led startups. Managed by Haatch, this co-investment platform will work with five angel syndicates—two of them female-led—to bring more capital to underfunded women entrepreneurs. The mission? To finally close the persistent gender gap in UK startup funding.
Today, women-led small businesses contribute £85 billion to the UK economy each year. Yet they receive only 9% of startup funding. And in tech, it’s worse—female-founded firms raised just $1.8 billion in 2024, down 18% from 2022, according to Tracxn.
Female-Led Syndicates Take the Lead
HERmesa and Sie Ventures are at the heart of this effort. HERmesa is a 270+ member network focused on tech-enabled, women-led startups. Its leaders—Marla Shapiro, Emma Blackburn, and Wibke Stoffers—invest at the earliest stages, from pre-seed to seed. Sie Ventures, meanwhile, backs diverse teams across the UK and Europe. Both groups now have the support they need to invest more often, and more boldly.
This marks the first time the British Business Bank has directly funded female-led angel groups through its Regional Angels Programme. Historically, only 11% of senior investment roles are held by women. Adam Kelly, the Bank’s Managing Director of Funds, said the new structure lets them co-invest in high-potential founders across the UK. The Bank’s total investment with Haatch now stands at £27 million.
Three other syndicates join the mix:
- CircleRock Capital, which partners with top global VCs from Seed to Series B.
- The Games Angels, gaming experts backing AI-powered studios.
- 2050 Capital, which invests in AI, robotics, and clean energy—sectors where women still get just 7% of AI funding in the UK.
This broad approach ensures that funding reaches women both directly and through more inclusive industries.
Haatch’s co-founder Fred Soneya welcomed the partnership. He said the additional capital would help them support a wider range of founders and drive innovation in sectors where diversity is still lacking.
Beyond Capital: Building Confidence and Impact
This isn’t Haatch’s first step in closing the gender gap. Its Female Founders Accelerator has already empowered over 470 women. Of those, 98% reported stronger financial literacy. Another 94% expanded their networks. The results speak for themselves.
Take Murvah Iqbal, founder of sustainable logistics startup Hived. She raised £36.1 million, supported by Haatch’s guidance. Then there’s Michelle He of Abound, who secured £250 million in debt funding for her AI-driven lending platform.
These wins align with the UK’s wider “Invest in Women Taskforce,” a £255 million fund aimed at helping women-led startups scale. Economists estimate that closing the gender gap could unlock an extra £250 billion in GDP.
Jenny Tooth OBE, Executive Chair of the UK Business Angels Association, said this new £7 million commitment would give angel groups more power to back women-powered ventures across the country. For the first time, female-led syndicates can scale faster and fund more founders who have long been overlooked.
Still, deep challenges remain. Only 2.8% of UK equity funding in 2023 went to all-female teams. And most venture capital—82%—still goes to all-male teams. Female founders are also more likely to face biased questions and tougher scrutiny during pitches.
To fix that, the Bank is putting long-term plans in motion. It has pledged £50 million to support female-led VC funds and signed the Investing in Women Code. It’s also backing Bootstrap 4F’s £250 million fund-of-funds to help more women become general partners.
In the end, this £7 million isn’t just about money. It’s a roadmap for a fairer future. By supporting angel groups that back diverse founders, the British Business Bank is helping to reshape the startup world—one investment at a time.
