In a move to close the persistent gender gap in early-stage investing, the British Business Bank has committed £7 million to a new co-investment platform managed by Haatch.
The initiative partners with five emerging angel syndicates — including two women-led groups — to increase capital access for female founders and broaden diversity in venture ecosystems across the UK.
Women-led small businesses contribute an estimated £85 billion annually to the UK economy, yet female founders continue to receive only 9% of startup funding. The disparity has deepened in recent years, with female-led tech startups raising just $1.8 billion in 2024 — down 18% since 2022.
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Female-Led Syndicates Driving Change
Two standout partners — HERmesa and Sie Ventures — exemplify the platform’s gender-focused mission. HERmesa, led by Marla Shapiro, Emma Blackburn, and Wibke Stoffers, is a 270+ member angel network investing exclusively in pre-seed and seed-stage, women-led tech startups. Sie Ventures, meanwhile, targets diverse founding teams across the UK and Europe.
This marks the first time the British Business Bank’s Regional Angels Programme has directly funded women-led investor groups — a significant milestone in an industry where women hold just 11% of senior investment roles.
“This new structure enables co-investment alongside five promising syndicates, including two female-led groups,” said Adam Kelly, Managing Director, Funds at British Business Bank. “It brings our total commitment to Haatch to £27 million.”
Backing Innovation Across Key Sectors
The platform isn’t just tackling gender inequality — it’s also investing in high-growth industries:
- CircleRock Capital: Sector-agnostic syndicate co-investing with global VCs.
- The Games Angels: Gaming veterans backing AI-driven and personalized gaming studios.
- 2050 Capital: Focused on AI, robotics, and clean energy — sectors where women receive only 7% of AI funding in the UK.
This diversified approach helps women founders both directly and indirectly, by growing inclusive industries and attracting more diverse talent pools.
“This additional commitment allows us to support an even broader range of founders,” said Fred Soneya, Co-founder of Haatch. “We’re thrilled to continue our collaboration with the British Business Bank and invest alongside some of the UK’s most dynamic emerging angel syndicates.”
Building Ecosystems, Confidence, and Returns
The initiative builds on Haatch’s earlier successes, such as its Female Founders Accelerator, which has supported over 470 women to date. Nearly all participants reported improved financial literacy and professional networks.
Notable alumni include:
- Murvah Iqbal (Hived), who raised £36.1 million for her sustainable logistics startup.
- Michelle He (Abound), who secured £250 million in debt financing for her AI lending platform.
These outcomes align with the Invest in Women Taskforce’s goal to unlock £250 billion in GDP growth by closing the gender gap in entrepreneurship.
“This £7 million co-investment is a major step forward,” said Jenny Tooth OBE, Executive Chair of UK Business Angels Association. “For the first time, Regional Angels Programme funds are backing female-led investor groups with the capacity to significantly grow women-powered businesses.”
Changing the System, Not Just the Stats
Despite progress, systemic barriers remain. Just 2.8% of UK equity investment in 2023 went to all-female founding teams. The Bank has pledged to invest £50 million into women-led funds and actively supports the Investing in Women Code to promote accountability.
Coupled with initiatives like Bootstrap 4F’s £250 million fund-of-funds for female general partners, the ecosystem is slowly evolving to match the scale of the opportunity.
“This isn’t just about closing funding gaps — it’s about rewriting how capital is allocated and who gets to build the future,” said the British Business Bank in a statement.
With this £7 million commitment, the UK takes another critical step toward gender-equitable innovation — one investment, one founder, and one syndicate at a time.
