UKBAA CEO Jenny Tooth’s bi-weekly update – 16th May

Author

UK Business Angels Association

16 May 2019

With the focus in recent government reports on the huge imbalance in the level of access to risk capital between women entrepreneurs and their male counterparts, the importance of having more women in the investment base has been identified as a key means to address this issue. This is a topic I discussed this week with the Daily Mail and Total Business magazine where I spoke about the importance of having more women investors bringing vital advice and support alongside risk capital to women entrepreneurs.

According to our research, carried out between January 2017 and December 2018, some 54 per cent of women invested in women-founded businesses were already invested in at least one other company founded by women.

Nearly 20 per cent were invested in three to 10 women founders.

This is considerably higher than for male investors, who typically invest into a small minority of women-led businesses with only a few leading male angels investing in a significant number of women founders.

It highlights the importance of women’s angel capital in increasing the level of investment in female-founded businesses. Yet currently only 14 per cent of business angel investors here in the UK are women.

I also discussed with Forbes last week, the increasing drive from investors to support small businesses rather than investing in large corporations, especially from seasoned, experienced investors who are looking to take a more active role in the business they back.

This is why investors are so vital to the SME economy’s future growth and expansion since one of the key pillars of angel investing is providing not only funds, but also guidance and help to nurture their portfolio businesses. There is far more of a moral choice involved with supporting UK small businesses over the established companies that exist in the FTSE 100 and 250 [stock market indices].

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