There has been no improvement in the value of investment deals to all-female founder teams over the past decade, according to a new report by the British Business Bank.

Research found that while all-female teams accounted for nine percent of venture capital deals in 2022, they received just two per cent of the total funding by value. The bank said that this shows no improvement since 2011.

Yet there are some signs of improvement in the investment landscape. Teams with at least one female founder won 27 per cent of investment deals in 2022, which is the highest proportion ever. Additionally, 13 per cent of first-time equity deals went to all-female teams.

All-ethnic minority teams received 10 per cent of first-time equity deals, while founding teams with at least one ethnic minority founder made up 42 per cent of investment value of first-time deals in 2022, up from 14 per cent in 2013.

“The journey of raising venture capital can be challenging – but for underserved entrepreneurs, the barriers can be far higher and this needs to change,” said Louis Taylor, the chief executive of British Business Bank. “Our Finding What Works: Pathways to Improve Diversity in Venture Capital Investment report provides clear, actionable, and evidence-based pathways for UK funds to improve diversity in investment, which I hope will stimulate both discussion and action to improve outcomes for diverse entrepreneurs and the wider UK economy.”

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