Why Backing Women Founders and Investors is Crucial

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- Seed
- Series A
- Series B
Why is backing women founders and investors such ‘a strategic imperative?
Women investing in women-led ventures represents a transformative movement that extends beyond financial returns.
It is a powerful driver for economic empowerment, innovation, and equality.
Supporting women who back other women in investment amplifies the potential for systemic change in the entrepreneurial and financial ecosystems, where gender disparity remains a challenge.
At Lifted Ventures, we’re proud to be part of the women backing women movement.
Addressing Gender Disparities in Investment
The investment landscape is historically dominated by men, resulting in a skewed distribution of resources.
According to studies, women-led start-ups receive less than 2% of venture capital (VC) funding globally, and the situation is even more pronounced in the UK.
A 2022 report by the British Business Bank found that all-female teams received just 1% of VC funding in the UK, while mixed-gender teams received 10%. Meanwhile, all-male teams secured a staggering 89%.
This disparity is due to systemic biases and the underrepresentation of women in decision-making roles in venture capital. When women investors support women founders, they disrupt these entrenched patterns by addressing biases in funding decisions. Female investors often recognise the potential in businesses led by women that others might overlook, simply because they understand the unique challenges and opportunities faced by women entrepreneurs.
Economic Empowerment and Growth
Supporting women investors who focus on women founders directly impacts economic empowerment. Research has shown that businesses led by women deliver better financial performance compared to the average.
For instance, a study by Boston Consulting Group revealed that women-led start-ups generate 78 pence of revenue per pound of funding, compared to 31 pence for male-led start-ups. Investing in women founders is, therefore, not only equitable but also a prudent financial decision.
Encouraging Innovation and Diversity
Diversity is a proven driver of innovation. Women-led businesses often bring fresh perspectives and solutions to markets, particularly in industries where women's voices have historically been underrepresented. For example, the rise of femtech - technology designed to address women’s health issues - demonstrates how women entrepreneurs fill gaps ignored by traditional markets.
Women investors play a critical role in championing these innovative solutions. Their support goes beyond funding; they bring mentorship, networks, and expertise that are tailored to the needs of women entrepreneurs. This ecosystem fosters a pipeline of diverse ideas and products that benefit society as a whole.
Building Role Models and Mentorship Networks
When women investors actively support women founders, they create a cycle of empowerment. Successful women founders often become role models and, in turn, investors themselves, perpetuating a culture of mentorship and support.
By fostering women-led investment, we increase the visibility of successful women entrepreneurs and investors, challenging stereotypes and inspiring the next generation.
Top Tip
This cycle of mentorship and inspiration is a critical component of achieving long-term gender parity in the financial and entrepreneurial sectors.
Social Impact and Sustainable Development
Women-led businesses are often mission-driven, focusing on creating social impact alongside financial returns. They are more likely to prioritise sustainability, ethical practices, and community engagement. By backing these ventures, women investors contribute to achieving broader societal goals, such as those outlined in the United Nations Sustainable Development Goals (SDGs).
For example, women entrepreneurs often address pressing global issues, from climate change to education and healthcare. Supporting women investors in backing these founders ensures that capital flows into initiatives that tackle systemic challenges and create a better future.
Overcoming Structural Barriers
Despite the evident benefits, women investors and entrepreneurs face structural barriers, including limited access to networks, biases in financial institutions, and societal expectations. Supporting women backing women addresses these barriers by creating inclusive spaces and communities where women can thrive.
Fun Fact
Women are more than twice as likely as men to ‘pay it forward’ and develop other women according to Catalyst, a global non-profit gender research business.
Initiatives such as women-focused venture funds, angel networks, and accelerator programmes play a pivotal role in providing resources and opportunities tailored to women’s needs. Advocating for policies and practices that encourage diversity in investing, such as requiring gender-balanced teams in venture capital firms or promoting transparency in funding decisions, can further accelerate this shift.
Why Lifted Ventures Backs Women Supporting Women
Supporting female founders is more than an act of fairness; it is a strategic imperative that drives economic growth, fosters innovation, and promotes equality. £250 billion could be added to the UK economy if more investment was deployed into female founder businesses. By addressing systemic biases, encouraging diversity, and creating role models, this movement unlocks the potential of half the population, benefiting society as a whole.
The ripple effects of empowering women in investment and entrepreneurship are profound. They create a world where innovation thrives, communities flourish, and sustainable development becomes a reality. It is not just about funding businesses; it is about building a more inclusive and equitable future. Supporting women backing women is an investment in the potential of humanity.
Lifted Ventures works to support women across the investment spectrum.
From running investment readiness programmes for founders led by real investors with a showcase event to get businesses in front of people who can help, to running angel investor education programmes, we support women to be backed by women as our key thesis.
We work to educate investors on intersectionality with our investor blueprints, helping to move the dial with actions that investors should take to invest not just in female founders but those with disabilities, neurodivergent founders and those from the global majority.
Female led businesses generate twice as much revenue per pound invested, despite receiving half the capital. We’re here to increase the flow of early stage capital to female founders, and to promote the business benefits of backing women.