The number of women starting businesses in the United Kingdom is on the rise, according to a government-commissioned review. In 2022, 150,000 companies were started by women, double the number recorded in 2018. However, female-led businesses still face challenges in raising equity finance. Only 3.5% of Venture Capital went to British businesses led by women in the first half of 2023, compared to 85% directed to male-led firms. The Funding inequality was also recognized by the Rose Review, which recommended encouraging more angel investment by women.
To address this issue, British entrepreneur Emma Sinclair MBE is launching an initiative called Be My Angel. In partnership with crowdfunding platform Crowdcube, Sinclair is inviting women to invest small amounts in startup and scaleup companies. The initiative will officially launch on International Women’s Day and will offer opportunities to invest in EnterpriseAlumni and twelve other businesses led by female entrepreneurs.
Sinclair believes that the underfunding of female-led businesses needs to be solved from the bottom up. She wants to encourage more women to become angel investors and believes that anyone can be an angel investor, regardless of their wealth. Sinclair aims to fill the funding gaps by directing investment through equity crowdfunding platforms towards selected female-owned companies.
While some may view this as a way to attract investment, Sinclair has a track record of advocating for gender-balanced investment and has written extensively on the subject. She emphasizes the importance of angels as a source of funding for many B2B companies and believes that increasing the number of female angels could make a significant difference.
The Be My Angel scheme specifically encourages women to invest in women-led businesses. Sinclair acknowledges the systemic issues in the VC space, where male dominance and unconscious bias can hinder funding opportunities for women. She wants to take action rather than just discussing the problem.
The initiative aligns with a wider campaign to support women in business, as access to finance remains a barrier for many female founders. Small Business Britain has published a list of 100 Inspiring Female Founders and emphasizes the need for greater awareness of funding options and broader support to help small businesses grow and scale.
The Rose Report estimated that unlocking the potential of women scaling their businesses at the same rate as men could generate £250 billion in new value. One of the report’s recommendations was to increase the pool of women angels from 14% to 30%. Sinclair’s campaign is part of the effort to achieve this goal and support female entrepreneurs in accessing funding.
