PROGRESS REPORT 2022 - NatWest Business Hub
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P R O G R E S S R E P O R T 2022
PROGRESS REPORT 2022 2
Contents
3 Foreword
7 Section 1: Access to and awareness of funding
20 Section 2: Caring responsibilities
23 Section 3: Enabling entrepreneurship
33 Conclusion
34 Appendix
• The Rose Review Board
• Contributors to the Rose Review
• The Investing in Women Code
• The Council for Investing in Female Entrepreneurs
• Education Coalition Members
PROGRESS REPORT 2022 3
Foreword
Two years into the pandemic, and scaling their businesses. We must
female entrepreneurship has proved be frank about its impact. Female
exceptionally resilient. entrepreneurs have spent twice as long
on caring responsibilities during the
More women than ever are starting new
pandemic as their male counterparts,
businesses. Over 140,000 all-female-
and their businesses were less likely
founded companies were created last
to recover.3
year, and this figure is growing by over a
third each year. It means that in total over As a result, an unacceptable disparity
20% of new firms are now led by women, between men and women starting
a record high.1 businesses remains. Female-led
businesses are still underfunded and new
Recent trends since the publication of
businesses are almost three times as
the initial Rose Review are encouraging.
likely to be started by men than women.4
Female founders are now making up
a larger proportion of new company The consequences are profound. In 2019,
incorporations than ever before, with we noted that £250bn could be added
proportionate growth in this area now to the UK economy if women in the UK
outstripping male counterparts. We have matched men in starting and scaling
also seen a c.17% increase in Female businesses. We have only just begun to
Total early-stage Entrepreneurial realise that value which can be a critical
Activity (TEA) since 2018. Everything we contributor to UK economic growth.
are doing as a collective is designed to
We recognise that creating long term,
accelerate that change.2
systemic change takes time but as our
Female founders are also better economy recovers, we cannot afford to
supported. Tens of thousands of accept the status quo. Between industry
entrepreneurs have benefited from and government, we have made progress
advice and mentoring schemes and in the three years since the Rose Review
thousands of students have received was published. We can still achieve the
enterprise training. Together, the Rose target of boosting the number of female
Review’s contributors and supporters entrepreneurs by 600,000 by the end of
have delivered real change. the decade, but we need to move fast to
hit this goal.
The pandemic, however, has
exacerbated the challenges faced We are beginning to see a cultural
Alison Rose by female entrepreneurs in starting shift. Entrepreneurs, investors and
government have made clear that they
will not stand by while women enjoy
Paul Scully MP fewer opportunities than men. At the
launch of this report, 134 organisations
with a combined investment power of
nearly £1 trillion have signed up to the
Investing in Women Code, committing
them to improve the potential for female
entrepreneurs to succeed.5 This is a 68%
increase in signatories from last year.
1
Rose Review analysis of mnAI data (see page 19).
Figure represents company incorporations with 100% female directors.
2
TEA = the percentage of 18-64 population who are either a nascent entrepreneur or owner-manager of a new business.
3
Survey conducted as part of the Alison Rose Review of Female Entrepreneurship, October 2021 [see page 20].
4
Rose Review analysis of mnAI data (see page 19).
5
British Business Bank analysis of Pitchbook data, January 2022.
PROGRESS REPORT 2022 4
That is why we are announcing Meanwhile, the Women Entrepreneurs
a fresh drive to ensure focus and Finance Initiative, housed at the World
accelerate momentum to make sure Bank, is working towards establishing
that female entrepreneurs get the the Women Entrepreneurs Finance
same opportunities as men. Together, Code, a global initiative partly inspired by
over the coming year, we will launch work in the UK that will seek to reverse
initiatives to boost access to and the regressive effects of Covid-19 and
awareness of funding, continue to expand the availability of finance for
seek solutions to challenges posed female entrepreneurs.
by caring responsibilities, and enable
In the UK, we must increase our focus on
entrepreneurship through enhanced
driving extra finance to female founders.
support, networking and education.
We are building on the work of the UK
The Investing in Women Code is aiming Enterprise Fund (UKEF), engaging with
to provide more transparency, more financial institutions and corporate ventures
engagement by senior decisionmakers to identify and encourage opportunities
and more positive change in funding. to expand and launch dedicated funding
Across banking, angel investment and sources for female-led businesses.
venture capital, it can help direct finance
We are doing more to ensure that
to female founders and make a lasting
opportunities for female entrepreneurs
difference. Via a new recruitment drive
are shared around the country. We
which urges leaders to sign up, we aim to
cannot correct the disparity between
secure majority coverage of the venture
male and female entrepreneurs if some
capital industry over the next year.
of the best chances to meet, learn from
Building on this work, we will be engaging and pitch to investors are limited to the
more closely than ever with signatories South East. That is why the Women Angel
to ensure that they have the support they Investment Taskforce is launching a
need to implement real and effective campaign to support women to become
change across their policies and business angels and ensure that female
investment approach. founders across the UK have a better
chance to access early-stage investment,
wherever their businesses are based.
Finally, we will create more opportunities
to provide direct backing to female
entrepreneurs. Expanded schemes
will provide networking and mentoring
opportunities and other direct support
to hundreds of thousands of female
founders over the next three years.
Alison Rose
CEO, NatWest Group We would like to thank the many
entrepreneurs and investors across the
industry who continue to show their
dedication to achieving the goals of the
Rose Review, including those who have
contributed to the report.
With fresh thinking, swift action and a
redoubled effort, we can continue to
Paul Scully MP
work together to achieve our ambitions
Parliamentary Under Secretary
and unleash the untapped potential
of State and Minister for London,
of female-led businesses to drive our
Department for Business, Energy
economic recovery.
& Industrial Strategy
PROGRESS REPORT 2022 5
The 2019 Rose Review set out 8 initiatives that were designed to deliver
co-ordinated, tangible improvements across three key areas: increasing
access to and awareness of funding for female entrepreneurs, providing
support to those with caring responsibilities, and enabling entrepreneurs
through a strong ecosystem of support.
Rose Review eight initiatives 2019
1 2 3 4
Promote greater Launch new investment Review existing and Encourage UK based
transparency in UK vehicles to increase create new banking institutional and private
funding allocation through funding going to female products aimed at investors to further
a new Investing in Female entrepreneurs entrepreneurs with family support and invest in
Entrepreneurs Code care responsibilities female entrepreneurs
5 6 7 8
Improve access to Expand existing Accelerate development Create an entrepreneur
expertise by expanding the mentorship and and roll-out of digital first-stop shop
entrepreneur and expert networking opportunities entrepreneurship-related
in residence programmes courses to schools and
colleges
Access to and Caring Enabling
awareness of funding responsibilities entrepreneurship
PROGRESS REPORT 2022 6
In 2022, the Rose Review
is committed to:
1 2 3
Launching a targeted Working even more Continue to drive
recruitment campaign for closely with Code industry interest in
the Investing in Women signatories in the and engagement with
Code, with a commitment to coming year, to help ensure the Code through Ministerial
securing increased coverage that their involvement creates meetings and roundtables.
across all sectors, with a real change in policies
particular focus on majority and investment approach.
coverage of the venture capital This will involve one-on-one
sector, through a campaign interactions to identify existing
led by the British Private challenges, which will inform
Equity & Venture Capital future support and guidelines.
Association (BVCA) and British
Business Bank.
4 5 6
Our aspiration is for Launch an Angel Launch a refreshed
30% of all investment investor campaign Investing in Women
in private companies via the Women Angel Hub to help female
to go to female founders and Investment Taskforce to entrepreneurs source
co-founders by 2030. Part support women to become information, networking
of delivering on this will be to business angels and thereby opportunities, and access to
build on the work of the UK ensure that female founders funding at every stage of their
Enterprise Fund, by encouraging across the UK have better business journey.
other financial institutions and chance to access early-stage
the private market community investment, wherever their
(including leading GPs / LPs and businesses are based.
corporate ventures) to identify
and launch further opportunities
to expand the funding sources
for female-led businesses.
7 8 9
Continue to explore Work in collaboration Track progress against
solutions to the with organisations these commitments
challenges created by across the industry and communicate
caring responsibilities. to deploy extra expertise clearly and regularly.
and support, providing
mentors and highlighting role
models who can guide and
inspire entrepreneurs across
the country.
PROGRESS REPORT 2022 7
Section 1
Access to and
awareness of funding
PROGRESS REPORT 2022 8
Section 1:
Access to and
awareness of funding
Funding remains the number one barrier In this section we outline some of the
facing female entrepreneurs at every positive momentum which is beginning to
stage of their business journey. The instil a cultural shift across the industry
2019 Rose Review found that women since the launch of the Rose Review.
were launching businesses with less It is imperative that we harness this
capital than men, were less aware of the good work to drive further change in the
different funding options available, and funding landscape.
were also less willing to take on debt.
The 2019 Rose Review set out a number
of high impact initiatives to address the
underlying issues and improve access to
funding for female entrepreneurs.
68%
Promoting greater The Code commits signatories to:
transparency in 1. Adopt best practices that will
Rise in Code signatories UK funding through benefit female business owners,
from 80 to 134 with a member of the senior
The Investing in leadership team responsible
Women Code for supporting equality in all
interactions with entrepreneurs.
£1 trillion
Measurement and disclosure are
2. P
rovide annual funding data
powerful instruments of change. HM
disaggregated by gender to
Treasury launched the Investing in
in assets under management BEIS, based on agreed guidelines.
represented in the Code Women Code (the Code) in July 2019
Providing data and analysis helps
following the recommendation made in
to promote greater transparency
the 2019 Alison Rose Review of Female
across the industry, highlighting
Entrepreneurship.6 Since its launch, the
where measures are working
Code has attracted 134 organisations as
and where further measures may
of end of February 2022, up from 80 in
be needed.
March 2021, a 68 per cent year-on-year
rise, and representing nearly £1 trillion in
assets under management (AUM).7
The consortium comprises of a range
of financial organisations, including
major UK banks and institutional
investors, venture capital firms (VCs),
angel syndicates, and charities and
social enterprises.
6
2019 Alison Rose Review of Female Entrepreneurship, pg. 12. HM Treasury launched the Investing in Women Code in July 2019 and as
of June 2021, this policy initiative was transferred to BEIS noting its connection to BEIS-led Rose Review of Female Entrepreneurship.
7
British Business Bank analysis of Pitchbook data, January 2022
PROGRESS REPORT 2022 9
This rise in membership is due to the By encouraging participation, the Code
outreach activities and consistent will increase industry transparency
strong messaging undertaken by the on investment levels and provide a
British Business Bank and trade bodies, benchmark against which signatories
the BVCA, UKBAA, and UK Finance to can measure themselves against
recruit more signatories to the Code. their cohort. It also provides them
Government-funded Future Fund and with the opportunity to engage with
Future Fund: Breakthough programmes, networks they may not otherwise
administered by the British Business have come across, through better
Bank,8 which require lead private sector signposting and outreach to female and
co-investors to sign up to the Code and underrepresented founders. In addition,
incorporate its principles into investment the Code will focus on working closely
decision-making practices, also played a with signatories in the coming year,
vital role over the course of 2020-21. to provide guidance and support to
ensure that their involvement creates a
It is positive to see a growing number
real change in policies and investment
of financial institutions demonstrate
approaches. All this has an ultimate
leadership and take action to support
goal of shifting the dial on the amount
UK female entrepreneurship. New
of investment being received by female
signatories include leading UK SME
founders and increasing the flow of
growth capital providers, such as
funding to female-led businesses.
Development Bank of Wales and Innovate
UK, and notable venture capital providers To support this, the British Business Bank
such as Beringea, Bethnal Green has recently launched a dedicated site
Ventures, and Sapphire Capital Partners for the Code where finance providers
with a total of over £550 million of AUM. can easily sign up to become Code
signatories. This one-stop shop provides
signatories with guidance on the Code’s
requirements and resources on how
to address diversity and inclusion
internally, and within their pipeline.
This can be accessed via: https://www.
british-business-bank.co.uk/investing-in-
women-code/
This rise in membership is due to the outreach activities and consistent strong messaging undertaken by the
8
British Business Bank and trade bodies, the BVCA, UKBAA, and UK Finance to recruit more signatories to the
Code. Government-funded Future Fund and Future Fund: Breakthough programmes, administered by the British
Business Bank, which require lead private sector co-investors to sign up to the Code and incorporate its principles
into investment decision-making practices also played a vital role over the course of 2020-21.
PROGRESS REPORT 2022 10
A focus on towards diverse businesses within the
VC community.14 Female entrepreneurs
Venture Capital have spoken to this bias by sharing
their accounts of being judged as less
We have seen a significant uptake in
competent than their male peers, despite
VC signatories to the Code over the
having a similar degree of skills and
past year, from 50 to 90, and this group
business experience.
remains a core focus of recruitment
going forward. The Code was launched to increase
transparency on funding decisions,
According to TechNation, the UK’s
increase investment into female
start-up ecosystem raised £13.5 billion
founders, and showcase the actions
during the first half of 2021, almost three
taken to create long term and meaningful
times the investment raised in the first
change. The British Business Bank,
half of 2020.9 In addition, more than 100
UKBAA, and BVCA will therefore be
tech ‘unicorns’ and 153 ‘futurecorns’ are
reaching out to all VC firms in 2022 who
based in the UK.10 Even with this large
are not currently signed up to encourage
influx of funding and talent, historical
their participation and is targeting
total VC investment levels in female
majority coverage of the VC landscape.
founders have remained significantly low,
at under 5%.11 In comparison, all-male Outreach to new and existing signatories
teams accounted for a disproportionate will also include the continued
84% of total VC funding in 2020. discussions around the barriers they
face in making meaningful change and
The 2021 Annual Investing in Women
the promotion of the 2021 publication:
Code Report further highlighted that
Guidance and Best Practice: Examples
all-female teams account for only 10%
for VCs and institutional investors.15
of investment pitches that reach VC
Written by leading investors and
signatory firms, and the share of all-
professionals including Atomico, Pollen
female founder teams funded dropped to
Street Capital, Ada Ventures, Adelpha,
6%.12 The VC industry is a close-knit group
Astia, KPMG, Diversity VC and Diversio,
of investors, advisors, and entrepreneurs
and published by the BVCA, the
who rely on familiar networks and
guidelines support investors looking to
relationships to source and finance
improve diversity and inclusion as a route
commercially successful enterprises.
to attracting and retaining quality talent,
Previous research has highlighted a
accessing high-conviction investment
link between “warm introductions” and
opportunities and optimising portfolio
eventual funding allocations.13 There is a
9
Tech Nation, After raising ‘astonishingly management and returns. The response
high’ investment, UK tech scaleups
lack of transparency around how funding
to the guidelines has been overwhelmingly
must now consider their future impact, decisions are made, with various reports
September 2021 positive from VCs and female founders
suggesting signs of perceived bias
10
‘Unicorns’ are companies valued at more and institutional investors.
than £1 billion and ‘Futurecorns’ are high
growth companies with the potential to
become unicorns 0.4
11
The Annual Small Business Equity Tracker
reported that around 2% and 5% of total Venture Capital Investment in
VC investment was received by all-female 0.17 All-Female teams (verified deals, £billion)
teams in 2019 and 2020, out of record
high levels of £8.5 billion and £8.8 billion, Total VC investment levels in female founders
respectively, of total annual venture have remained significantly low over the past three
capital. Further British Business Bank years, at under 5%.
2019 2020
analysis of Beauhurst data suggests these
percentages amount to £0.17 billion and
Total VC investment in the UK
£0.4 billion.
12
2021 Investing in Women Code Report Investment provided to all-female teams**
13
2019 Rose Review Report and 2019 UK 8.5
Venture Capital & Female Founders report
14
2019 Rose Review Report, 2019 UK Venture **British Business Bank analysis of Beauhurst data
Capital & Female Founders report 8.8
2020 Alone, Together: Entrepreneurship
and Diversity in the UK
15
Guidance and Best Practice: Examples for
VCs and institutional investorsCASE STU DY PROGRESS REPORT 2022 11
Anthemis: Transparency and
focus drive diversity efforts
A Code signatory shares their thoughts on the impact it has had on their investment approach.
“It was an obvious and easy decision autonomous mobility company with
for us to sign up to the Code” reflects diverse founders, and TAINA Technology,
Briana van Strijp, Anthemis CEO. “We a women-founded provider of regulatory
are a women-founded and women-led compliance systems. A new £22 million
business with DE&I as a core guiding fund to support UK female fintech
principle, so there was a very strong founders was recently launched in
“I genuinely believe
values alignment and shared ethos.” partnership with Barclays. “Early on, we
the Rose Review Briana believes the Code has accelerated had the hypothesis that diverse teams
and the Investing in change across the investment could outperform the market,” says
Women Code have industry, including at Anthemis. “The Briana. “That belief is being proved out
importance of the Code is that it creates – the research shows that companies
materially accelerated
transparency and focus. We’ve now who embrace diversity really do achieve
collaboration across integrated DE&I into our investment better results.”
the industry to address selection process and all our investment
Anthemis now collaborates on an
the gender imbalance in professionals receive mandatory training
array of initiatives to tackle the funding
fundraising.” on unconscious bias and inclusive
gap, including the Beyond Herizons
selection.”
Briana van Strijp, programme with London & Partners,
CEO, Anthemis Group The numbers evidence the commitment: Female Founder Office Hours events,
57% of Anthemis investment team and working with Diversity VC to improve
decision makers are women and industry practices. “It’s delightfully
45% of its portfolio companies have refreshing to work with like-minded
founders who are female or of colour, individuals who are passionate about
such as Humanising Technology, a UK changing the system. There’s a magic in
being able to connect things up.”
Briana van Strijp is CEO of Anthemis and COO of
Anthemis Digital Acquisitions, which focuses on
ESG opportunities. Her experience spans strategy,
transformation, design thinking, systems and
complexity thinking, organisational design, cultural
innovation and strategic innovation.CASE STU DY PROGRESS REPORT 2022 12
Agricarbon: Catalysing
climate change solutions
Agricarbon, founded by Annie Leeson, is one of the dynamic female-led businesses receiving investment from the VC
community, including Adelpha, Counteract, Evenlode Impact, and other angels, family offices and institutional investors.
Annie Leeson, CEO and co-founder of
Agricarbon, was motivated by frustration
at the lack of large scale, nature-based
decarbonisation solutions. “I was
advising corporates and cities on net zero
“Our investors ask carbon offset strategies. I knew soil could
amazing questions be an incredibly effective carbon sink, yet
no infrastructure existed for large offset
because they’ve
buyers to access soil carbon credits. I
experienced the decided to roll up my sleeves and find a
challenges themselves. solution”. Annie discovered a tiny team
There’s no sense of in Scotland developing a mechanical soil
analysis concept that reduced the cost of
‘them’ and ‘us’ – we feel
accurately measuring soil carbon by 95%,
we have a team behind and realised its potential to unlock value. One priority for Annie is capturing the
us and on our side.” “I knew this was the key and could see benefits of diversity. “If you diversify
Annie Leeson, a clear path to commercialisation and the people you back, don’t then try
CEO and co-founder scale. The team welcomed me on board to mould them into old patterns of
of Agricarbon to really help the business fly”. behaviour. We’re told that women don’t
Annie quickly developed a commercial sell themselves as hard as men – maybe
service and launched it with a 700-farm the investment world could adjust itself
dairy cooperative (First Milk), supported to recognise that and take what we say
by their CEO, Shelagh Hancock, and at face value? When we set targets, we
backed by Nestlé. The founders sought expect to meet them.”
funding to scale up the technology and
expand delivery capabilities. “We looked
for investors we’d enjoy working with,
who would challenge us constructively.
Our investors have been hugely
successful in life and now want to
put their money to good use by
supporting innovation around climate
and clean technology.”
Annie is co-founder of Agricarbon and a former
marketing manager, innovation and strategy
consultant and co-founder of the Leeson Index.PROGRESS REPORT 2022 13
Encouraging positive practices
amongst high street banks
All Code signatories commit to adopting positive practices that will benefit female business owners.
Here we highlight a small selection of the many initiatives underway across the industry.
Lloyds has a number of activities to Barclays has pledged to support Metro Bank regularly hosts
support female entrepreneurs across 100k women in business across the networking events across its store
the UK, including working with Leeds UK, connect women in business with network, enabling the local business
Beckett University to promote the finance to help them succeed, and community to connect with each
#WECAN programme - a three-year to provide skills for this generation other and build relationships. Metro
project to help the next generation and the next to help them into Bank’s local business networking
of women leaders in the Leeds City entrepreneurship. To support these events, which take place both in
Region build their leadership skills and 3-year pledges, Barclays hosts local store when possible, but otherwise
capabilities, so they can maximise events for women in business and virtually, give a platform to female
their entrepreneurial opportunities. mentoring via its UK-wide network professionals in the local area to
Lloyds also invests in research into the of Eagle Labs and Rise hubs, as well share their opinions, concerns and
needs of women entrepreneurs and as increasing training and tools for industry knowledge. For each store’s
business owners in the North East, Barclays Business teams to support networking events, Metro Bank’s
North West and Yorkshire & Humber women. It has also created dedicated local business managers look to
Regions. The key findings will help the regional champions across the UK. include an insightful array of female
bank to define its support for women In addition, Female Founders First by entrepreneurs to champion. The Bank
in business in the North in 2022 and Barclays and Techstars has helped has also planned national events
beyond. Lloyds also continues to to address the negative impact of the for its customers and colleagues
enhance support for businesses to Covid-19 pandemic on many female- to emphasize the importance of
help them recover from the global led businesses. It is a unique global female entrepreneurship, including
pandemic and overcome other opportunity aimed to create a path for its ‘Making Women Successful in a
challenges, through finance, online 30 trailblazing female-led technology Changing World’ event in Q1 2021.
tools and content, and via colleagues. companies to reach their next stages
of funding, scale, and success.
Together, Barclays and Techstars
created a 6-week programme
Santander’s Women Business placing the founders unique goals,
Leaders’ Mentoring Programme challenges, and stories first.
matches women in founder/
leadership roles with experienced
mentors to support them in their
next stage of growth. In addition to
traditional one-to-one mentoring, the NatWest is a longstanding supporter of Women in Business and understands the
programme includes peer-to-peer various challenges that female entrepreneurs might face when setting up or running
and knowledge sessions to create a business. The Bank offers support through its Business Builder and Accelerator
a dynamic learning network. This programmes and has over 1000 Women in Business Specialists across the UK who
approach expanded in 2021 with provide tailored support for women looking to start up and succeed in business.
the launch of support specifically NatWest also offers support to female entrepreneurs through its Expert in Residence
for women of colour in business, programme (see page 29) and the Dream Bigger initiative which seeks to inspire
including media representation, young people, with a particular focus on young women, to explore entrepreneurship
promotion of role models, mentoring as a viable career path (see page 31).
circles and the bank’s first financial
readiness programme to address
the barriers to access to finance
experienced by women of colour.CASE STU DY PROGRESS REPORT 2022 14
Angels advancing the agenda
A wide range of angel groups are playing their part to increase funding opportunities
for female entrepreneurs, including supporting women to becoming business angels,
which in turn provides further access to investment.
“We didn’t want to build Alma Angels is an angel investor and Connect Ventures, amongst others.
yet another investor membership community founded in When they outgrew the Whatsapp
December 2018 by angel investors group, two techy Almas helped with the
syndicate, we wanted to
David Fogel, Ella Goldner, Kristin migration to a Slack community.
build a free community Cardwell and Deepali Nangia, with the
Two years since launch, the community
where female investors aim of improving the lack of female
has more than 300 Almas (which has now
could come together, angel investors in the UK early-stage
become a noun), who have invested a
ecosystem and breaking down the
ask each other total of around $5.0MM over a 17-month
traditional ‘access to network’ problem
questions, learn from period in 85 female-founded start-
for female founders.
ups and five female funds managers
each other and others
The pandemic helped spur the growth of including Passion Capital and January
more experienced, and the community, through online events, a Ventures. Read more about Alma Angels,
invest together in other Whatsapp group and Airtable database, signatories of the Investing in Women
women who find it hard where members have been able to Code, here: www.alma-angels.com
to obtain access to share deals, content and knowledge.
Events have covered a range of topics –
early-stage capital”.
including ‘how to build your investment
Deepali Nagia, thesis’ to ‘product-market fit’, deep
Alma Angels co-founder and diving into a number of sectors, from
UKBAA Angel Investor of the psychedelics to fintech. Speakers have
Year 2021
included partners at Balderton, Atomico
Mint Ventures is a women-led business accommodating. “When we invite the
angel group with 20 founding members, entrepreneurial team, we don’t force
born out of research from Women’s them down the pitching mechanism,
“Our guiding philosophy Enterprise Scotland, and looking to it’s about coming to talk about their
is that inclusivity is address the number one barrier for women opportunity in comfortable, safe space.”
starting to scale a business: funding.
an essential element To attract and support prospective
of innovation. We Mint Ventures formally launched in female angels, Mint holds women-
December 2021 with a mission to focused events such as webinars and
understand the
support both women angels and women offers a six-month training programme,
power of women entrepreneurs. Each investee team must plus a free online taster course to try
on entrepreneurial include a woman in leadership in the exec before committing. The minimum
teams and use it team or board, and Mint encourages investment is just £2000 per person. “We
investment in underrepresented sectors want to democratise angel investing so it
as an advantage in
attractive to female entrepreneurs, such as is accessible to women from all walks of
selecting investment creative, retail, services and food and drink. life,” says Gillian. “You don’t have to be
opportunities.” super wealthy to be an angel.”
“There is a perception that the bigger
Lynne Cadenhead, the investment the better,” comments
Chair, Mint Ventures CEO Gillian Fleming. “But that approach
perpetuates the funding gap further
down the chain. So we focus our
investments in the £50-250k early
stage space.” The pitch process has
also been carefully crafted to be moreCASE STU DY PROGRESS REPORT 2022 15
Capslock: Removing barriers
with investor support
Fund Her North is a Northern-based, volunteer collective of over 28 women (including VC’s,
funding organisations and angel groups), with a combined investment power of over £650
million. Fund Her North exists to give northern, female entrepreneurs equal access to funding
to help them successfully scale their businesses. They do this by providing connections,
education, and by holding investee companies’ hands through the fundraising process.
Capslock founders Lorna Armitage and
Andrea Cullen are on a mission to change
“Don’t be afraid to lives, by offering flexible, inclusive, online
research prospective cyberskills training with no fees upfront.
So, despite needing capital urgently,
investors. Find out
they rejected several potential investors.
their expectations and “Getting the right cultural fit was vital for
whether they really us” Lorna stresses. “It was scary to say
believe in what you’re no – our Innovate grant was almost gone.
But we needed investors who cared
trying to do.”
about social impact and backed our
Andrea Cullen, ambition to remove barriers to learning.”
Co-Founder, Capslock
Both feel that the support from GC they were totally supportive. More
Angels (a founding member of Fund impatient investors might have objected
Her North) confirms their decision to to the cost.”
“We wanted the
choose carefully. “They don’t push us in
freedom to innovate Lorna and Andrea’s other advice to
directions we don’t want just so investors
female founders is: speak up! “We
and be flexible in can get a return,” says Andrea. “For
tracked how often people addressed
everything we do, from example, because Capslock learners pay
our co-founder Jonathan rather than
nothing until they graduate and find a job,
teaching methods to us in meetings,” explains Lorna. Over
retention is really important. When we
admissions criteria.” 18 meetings, Andrea was addressed
told the Board we wanted to staff every
by name 11 times, Lorna 16 times and
Lorna Armitage, session with a lead tutor, and support
Jonathan 117 times. “However, one of the
Co-Founder, Capslock staff so learners had the best experience,
best things to come out of the situation
was that one of our investors saw our
report and contacted us to apologise
if they had ever prioritised Jonathan’s
input over ours, and promised to be more
conscious of this in future. Receiving that
email was great.”
Dr Andrea Cullen has over 25 years’ experience in the
tech industry. She co-authored and delivered the Cyber
Security master’s degree at the University of Bradford
and was Director of its Cyber Security Interdisciplinary
Centre. Lorna Armitage is a former programmer and a
Certified Ethical Hacker, with over 15 years’ experience in
tech and education. She co-founded the Cyber Security
Interdisciplinary Centre with Andrea. Both Andrea and
Lorna have consulted extensively on cyber security for
private and public sector clients.PROGRESS REPORT 2022 16
Launching new investment
vehicles to increase sources
of funding going to female
entrepreneurs
The pandemic triggered exceptionally Innovate will be announcing a new
high demand for financial support group of award winners on International
from women-led businesses and the Women’s Day 2022 and is using the
Rose Review continues to advocate for, learnings from its programme to build
support and inspire the creation of new further impactful plans to support
funding sources designed to help more diversity and inclusion in business
women secure business finance across innovation for the future.
the industry.
On the equity front, Coutts launched The
£2 billion
On the banking side, NatWest announced UK Enterprise Fund (UKEF or the Fund) in
a further £1 billion of ring-fenced debt partnership with BGF. This aims to enable
of ring-fenced funding funding for female entrepreneurs to clients to invest in diverse and high-
announced by NatWest for start and scale their businesses in 2021, potential growth economy companies
female entrepreneurs doubling the £1 billion provided in 2020. across all regions of the UK, with specific
programmes for female-led businesses,
A number of government initiatives
and looks to improve the diversity of
have also been launched or expanded
management teams / boards.
to support female-led SMEs across the
UK, including Innovate UK’s Women Appetite to support the creation of
in Innovation Campaign, to find and diverse businesses has been encouraging
engage more women in the UK with and the Fund held its final close in
brilliant ideas. Innovate is the UK September 2021 securing £42m of
government’s national innovation investment. It has already deployed
agency. The campaign seeks to provide ~40% of the Fund and invested in 27
women with access to advice, funding companies, 19% of which are female
and connections to help them achieve founded, versus the industry average of
their business ambitions. Since launching under 1% .16
in 2016, Innovate has seen a 70% Coutts and BGF are also preparing
increase in the number of female-led
to launch the next round of UKEF
applications, has built a new community
fundraising in Q2 / Q3 this year.
of over 9,000 women innovators,
and has provided awards to 80 women
at a total investment value to date
of £3.2 million.
16
Rose Review Report 2019CASE STU DY PROGRESS REPORT 2022 17
Elvie:
Funding for FemTech
Elvie was founded in 2013 by CEO Tania Since the launch of Elvie Pump on the
Boler, and brings together a team of catwalk of London Fashion Week in
world-class engineers, designers and September 2018, Elvie has experienced
business minds to develop extraordinary hyper-growth. The business grew 6x
products that improve women’s lives in 2019, almost doubled in 2020 despite
– revolutionising categories which had widespread Covid disruption – and is
been overlooked for many years. on track to double again in 2021. The
company launched 10 new markets
Elvie recently completed a £58m
across EU and Asia in the last 12 months
investment, led largely by BGF (including
and continues to see rapid sales growth
funds from the UK Enterprise Fund),
in the US, the world’s biggest breast
with further investment from funds
pump market. The funds will be used
and accounts managed by BlackRock
to scale the business and invest in
Private Equity Partners and a consortium
innovation, new product development
including Hiro Capital and Westerly
and expansion into new and existing
Winds, plus existing investors Octopus
markets.
Ventures and IPGL.
The FemTech industry is expected to
Elvie’s products include Elvie Trainer, an
become a $50 billion market by 2025.†
award-winning app-connected Kegel
trainer that helps women strengthen
their pelvic floor and Elvie Pump, the
world’s first silent wearable breast pump.
In October 2020, the company brought to
market two new breastfeeding products,
Elvie Catch and Elvie Curve.
†
Frost and Sullivan, Digital Revolution in Women’s HealthCASE STU DY PROGRESS REPORT 2022 18
Encouraging UK-based
institutional and private
investors to further support and
invest in female entrepreneurs
Frontline Ventures, a The Council for Investing in Female best practice examples for VCs, private
€300m multi-strategy Entrepreneurs was formed two years equity and institutional investors, written
VC fund and an IWC ago in conjunction with the Rose Review, by leading investors and professionals
founding member, has creating a community of firms and including Atomico, Pollen Street Capital,
increased the percentage individuals who are passionate about Ada Ventures, Adelpha, Astia, KPMG,
of female founders, both driving long term behavioural changes Diversity VC and Diversio, and published
in its pipeline and portfolio in the way that investors make decisions, by the BVCA.17
to ensure women-led businesses get the
investments, from 6% to The guidelines support investors looking
opportunities they deserve.
~22% over the past 5 years. to improve diversity and inclusion in
This evolution is the result Throughout 2021, prominent figures in their investment strategies as a route
of many different changes, the finance and investment community to attracting and retaining quality
including Frontline’s and entrepreneurs across the board have talent, accessing high-conviction
approach to sourcing deals continued to share ideas, further develop investment opportunities and optimising
and making firm internal guidelines and encourage investment portfolio management and returns. The
in female entrepreneurs through a response to the guidelines has been
policy decisions as guided
collaborative environment focused on overwhelmingly positive from VCs and
by the Code principles.
narrowing the funding gap. The Council female founders.
has also collaborated with other Rose
The Council has also worked closely this
Review initiatives, such as the Investing in
year with The Department for Business,
Women Code, to increase female access
Energy and Industrial Strategy (BEIS)
to funding.
and the British Business Bank on the
The Council has continued to spearhead development of the Code. Guidance was
change over the past year, despite the produced for investors/limited partners
challenges posed by the pandemic. in VC and private capital funds who
This includes the continued promotion would also like to sign up to the Code.
of the 2021 publication: Guidance and
The British Business Bank CASE STU DY
is the largest domestic
backer of Venture Capital The Enterprise Capital Funds Programme achieve real change. The Programme
funds in the UK through (ECF) is at the forefront of driving change has been actively encouraging partner
British Patient Capital within the venture ecosystem and fund managers to become signatories
and its Enterprise Capital demonstrates the work being undertaken of the Investing in Women Code and has
Funds programme. to encourage private and institutional adapted its due diligence questionnaire
Established in 2006, the investment into female entrepreneurs. to consider whether a fund manager is
Enterprise Capital Funds an existing signatory, and if not, whether
ECF recognises that investing in a
programme helps those they are considering signing up. This has
diverse set of funds and founders delivers
looking to operate in the resulted in six new VC signatories from
stronger returns, and that the Investing
UK market to raise venture the ECF portfolio signing up to the Code in
in Women Code, alongside other efforts,
the last three months.
capital funds, specifically reflects an opportunity to promote
targeting early-stage small wider participation, shift the dial and
businesses believed to
have long-term growth
potential. Guidance and best practice examples for VCs, private equity and institutional investors
17 PROGRESS REPORT 2022 19
Using data to
track progress
Data on female entrepreneurship is The Gender Index
Using a combination fragmented across many different
The Gender Index, powered by mnAI,
of machine learning sources, making it difficult to see the
overall picture or analyse underlying was conceived to create a national
algorithms and data
trends. One of our 2021 Rose Review benchmark of the current level of activity
generated from public undertaken by companies - from large
commitments was to create greater
and private sources, corporations to SMEs and start-ups -
transparency by extending gender
mnAI is a single source of related reporting, working with partners across the UK that are owned or led by
unified data holding 10bn+ such as mnAI. female founders.
data points on 8m+ UK We have been working with mnAI It will benefit women-owned businesses,
companies.18 to uncover data on female-led national and local government, investors,
incorporations over the past three years, academia and other stakeholders in the
enabling us to make a clear assessment female entrepreneurship ecosystem
“AWS is delighted to be and provide a crucial benchmark
of the current female entrepreneur
supporting The Gender ecosystem and the progress that has against which we can track Rose Review
Index, powered by been made since the launch of the Rose objectives going forward.
mnAI, and is committed Review in 2019. The first Index will be published on
to collaborating with The mnAI data shows that more 31 March 2022, in conjunction with
the Rose Review women than ever are starting new leading UK business schools, to provide
stakeholders to remove companies, with 145,200 all-female-led unique insight and analysis of female
entrepreneurship nationally and locally,
barriers and identify new incorporations in 2021, up from 56,200 in
2018.19 This represents an average year by sector, size and investment.
opportunities for female
on year growth of 37.3% per annum.20
entrepreneurs in the UK.”
Whilst all-male-led companies still make
Michel Hanouch,
Financial Inclusion,
up much of the landscape (there were
409,800 all-male-led incorporations
145,200
AWS GFS ProServe
in 2021, up from 193,400 in 2018),
all-women-led companies are making
up a greater proportion of new
56,200
Data covers incorporated entitles only,
18 incorporations.21 2018 2021
and excludes sole traders.
Date ranges for all years referenced is
19 All-female-led incorporations comprised 145,200 new all-female-led companies in
01/01> 31/12
20% of the total in 2021, up from 2021, up from 56,200 in 2018.
20
All-female-led is defined by companies
that are incorporated with 100% 16% in 2018. This share has grown
female directors. The total 2021 number consistently over the last three years,
including those led by a majority of
female directors (over 50.1%) was 148,800. despite potential setbacks caused by the
Incorporations founded by mixed teams
21
pandemic.22 The proportionate growth
made up 22% of total in 2021, down from
of all-female-led companies is now
16% 20%
26% in 2018.
22
The proportion of all-female-led outstripping male counterparts, which
company incorporations has risen over
has remained broadly flat over the past
the past three years, as follows 2018:
16%; 2019: 18%; 2020: 18%; 2021: 20% three years.23 2018 2021
The proportion of all-male-led new
23
company incorporations (comprised However, new companies remain almost
of 100% male directors) has remained
three times as likely to be started by men
broadly flat over the past three years
(2018: 57%; 2019:58%; 2020: 56%; 2021: than women.24 All-female-led incorporations now make
57%) up 20% of the total landscape.
All-male-led company incorporations
24
make up 60% of total incorporations,
versus 20% of women. The rest are
founded by mixed teams.PROGRESS REPORT 2022 20
Section 2
Caring ResponsibilitiesPROGRESS REPORT 2022 21
Section 2:
Caring Responsibilities
Caring responsibilities disproportionately These findings demonstrate the very
impact female entrepreneurs at every real barrier that must be addressed. The
step of the entrepreneurial journey. appetite for care-giving related support
6-10
In 2019, the Rose Review found that amongst female business founders is
women are twice as likely as men to high with such interventions – including
mention family responsibilities as a subsidised care – ranking higher for
barrier to starting a business, and rates female entrepreneurs than male at 44%
more hours spent by women
entrepreneurs on childcare of entrepreneurialism fall sharply for vs 34%.28
per week women after the age of 35 compared
We cannot fix the disparity between
to men. For female entrepreneurs with
female and male entrepreneurs without
children, balancing family demands
62%
fresh ideas to tackle the challenges posed
remains the #1 barrier to success.25
by caring responsibilities, which still have
This imbalance has only been a greater impact on women in business
exacerbated by the pandemic, where than on men. Devising solutions to this
female entrepreneurs with women entrepreneurs spent 6-10 more problem must be a continued priority
dependents 62% less likely
to report recovery from hours on childcare per week than they for the private and the public sector
pandemic, compared with did before, twice the increase reported alike in the coming years and has been
male counterparts by their male counterparts.26 Female highlighted as one of the key areas of
entrepreneurs with dependents have also focus for the Rose Review.
been worse affected than their peers by
Appetite for care-giving the pandemic, with their businesses 62%
related support ranks higher less likely to have recovered, than those
amongst female founders without.27 The carer responsibility issue
44%
goes beyond childcare, with many female
entrepreneurs also caring for elderly
family members. As the UK’s population
ages, this will become an increasingly
vs 34% for men significant issue.
25
2019 Alison Rose Review of Female Entrepreneurship, pg. 9
26
Survey conducted as part of the Alison Rose Review of Female Entrepreneurship, October 2021
27
Survey conducted as part of the Alison Rose Review of Female Entrepreneurship, October 2021
28
Survey conducted as part of the Alison Rose Review of Female Entrepreneurship, October 2021CASE STU DY PROGRESS REPORT 2022 22
Fetching: Digital pick-ups
revolutionise the school run
Female entrepreneurs are leading the way in devising innovative solutions to break down the
barriers for all working women with caring responsibilities. Fetching is one such example.
A ‘snow day’ school closure was the
trigger that prompted Rachel Beech to
quit her job to build Fetching – an app
enabling parents to build a digital support
network for school runs.
“Parents had struggled through the
snow to get to work. Then at 10am the
school sent an email announcing they
would close at noon. Our WhatsApp
“I believe there’s more group lit up with frantic messages – but
that we as a community in the end a handful of mums stepped
forward and said they could pick up other
of parents can do to
children. We could relax. And I thought:
help each other. We’re “Why don’t we do this every day?” I was
all in the same boat” working for a tech company so asked our
developers how a school run app might
Rachel Beech,
CEO and founder of Fetching work. Eventually one of them joined me
to build it.”
Fetching allows a parent to create a
photo ID-verified network of ‘fetchers’
– typically family, friends and other
parents – authorised to collect their
child. A parent needing cover sends a
single request to their network, rather
on subscription. Rachel sees potential
than making multiple individual calls.
to expand Fetching beyond schools to
The school is automatically notified
other organisations – such as clubs and
on their integrated platform when a
holiday camps – that need to monitor
fetcher accepts. The core app is free to
attendance, ensure safe collection or
schools and parents, with other features
encourage lift sharing.
such as playdate planning available
“Working parents need flexible, ad-hoc
support,” observes Rachel. “They say
it takes a village to raise a child. My app
helps us build our own digital village.”
Rachel spent 10 years leading marketing teams for
high end property firms before moving into tech. Sitting
on the management teams of proptech and fintech
startups, advising on marketing strategy and branding,
she was inspired to see how easily big problems could be
solved by smart technology.PROGRESS REPORT 2022 23 Section 3 Enabling Entrepreneurship
PROGRESS REPORT 2022 24
Section 3:
Enabling Entrepreneurship
Creating a supportive environment that The pandemic has highlighted the crucial
can inspire women and build confidence role that mentorship plays in supporting
that they have what it takes to become success for start- up and scale up
entrepreneurs is an essential stepping businesses. Survey findings indicate that
stone to boosting the number of female mentorship benefitted all entrepreneurs,
women with a businesses now and in the future. both male and female, and those that
business sponsor were mentored were 40% more likely to
5%
The 2019 Rose Review Report found
recover from the pandemic than those
that women were far less likely than
that were not.32
men to know other entrepreneurs or to
have access to sponsors, mentors or The Rose Review continues to inspire
vs 12% of men professional support networks.29 While
new survey findings indicate that many
and champion initiatives to develop a
supportive entrepreneurship ecosystem
women found it easier to network during for existing and future female founders,
the pandemic – potentially due to an focused around mentorship, education
increased level of online engagement and information sharing.
– this has not altered the underlying
those mentored were
In 2021, Rose Review stakeholders
40%
disparity.30 Women are still less likely
delivered support, mentorship and
to have strong professional networks
education programmes to tens of
compared to their male counterparts; for
thousands of current and prospective
example only 5% of women report having
female entrepreneurs, supported
more likely to recover a business sponsor versus 12% of men.31
from the pandemic
by enhanced digital platforms and
offerings, as organisations adapted
to the challenges posed by the
Covid-19 pandemic.
29
The 2019 Alison Rose Review of Female Entrepreneurship, pg. 62
30
Survey conducted as part of the Alison Rose Review of Female Entrepreneurship, October 2021
31
Survey conducted as part of the Alison Rose Review of Female Entrepreneurship, October 2021
32
Survey conducted as part of the Alison Rose Review of Female Entrepreneurship, October 2021PROGRESS REPORT 2022 25
Expanding existing
mentorship and
networking opportunities
There are a growing number of
mentoring and networking opportunities
available to help female entrepreneurs
find the support, confidence and
“If female-owned small inspiration they need to grow and Mastercard launched Strive UK in
businesses are well scale their businesses. In 2021, tens of September 2021 – an initiative from
thousands of interactions were offered to the company’s philanthropic arm,
supported to achieve
female entrepreneurs, through a range of the Center for Inclusive Growth,
their aspirations, our programmes and networks, including the which aims to empower 650,000
research shows they AllBright Network, MasterCard’s Strive British micro and small enterprises
could see a combined initiative, Be the Business, Digital Boost to thrive in the digital economy
and Enterprise Nation.
revenue growth of over the next three years and
£120 billion over the beyond. With a focus on female-
led businesses, the initiative is
next five years. Yet
Enterprise Nation is a vibrant collaborating with industry partners
almost half of them feel community of small businesses and including Digital Boost, Enterprise
overwhelmed by the business advisers, that ensures Nation and Be the Business, to
digital tools available to female founders have the right support businesses to succeed
business support at the right time. through free guidance, helpful
them. That is why we
This is delivered through a smart tools, and personalised, one-to-one
have set up Strive UK, one stop shop diagnostic tool, that mentoring.
with a focus on female connects over half a million people
run businesses, to offer each year to the learning and advice
personalised support required to start and scale. Through
Enterprise Nation, female founders
for their individual
have benefited from corporate
needs as they navigate backed programmes including
the digital economy and Facebook’s She Means Business
ultimately realise their and the Amazon Small Business
Accelerator, as well as being
growth ambitions.”
introduced into local peer groups
Kelly Devine, and meet-ups. The Enterprise
Division President, UK & Nation community and demographic
Ireland, Mastercard is predominantly female with a mix
of businesses in the creative, food
and drink, and fashion sectors, as
well as professional services with
There are a number of wider industry
accountants, digital marketers
initiatives that are also supporting
and HR pros using the platform to
access to the tools female entrepreneurs
connect with clients.
need to start and grow their businesses,
including Facebook’s She Means
Business campaign, which has been
running for five years to deliver free
training to female founders on Facebook
and Instagram.You can also read
