British Business Bank commits £7M to close the gender gap in early-stage funding

The British Business Bank has launched a £7 million co-investment platform managed by Haatch to address the persistent gender funding gap in early-stage ventures. This initiative partners with five emerging angel syndicates — two of which are women-led — to channel capital into women-led startups while fostering diversity across sectors and regions.
Women-led SMEs contribute £85 billion annually to the UK economy yet receive just 9% of startup funding. This disparity has worsened amid economic headwinds, with female-founded tech firms securing only $1.8 billion in 2024, an 18% decrease from 2022, according toTracxn.
HERmesa and Sie Ventures exemplify the platform’s gender-forward mission. HERmesa, a 270+ member network led byMarla Shapiro,Emma Blackburn, andWibke Stoffers, invests exclusively in women-led, tech-enabled startups at pre-seed and seed stages.
Sie Ventures focuses on diverse founding teams across the UK and Europe. This initiative marks the first time the British Business Bank’s Regional Angels Programme has directly empowered female investor groups to scale their impact, addressing a systemic imbalance where women hold only 11% of senior investment roles.
Adam Kelly, Managing Director, Funds at British Business Bank, added: “We’re delighted to continue our work with Haatch in creating this innovative new structure, to enable co-investment alongside five of the UK’s promising angel syndicates, including two female-led angel groups. This further commitment of £7 million takes our overall commitment to Haatch to £27 million.”
While prioritising gender diversity, the platform also drives breakthroughs in high-growth industries through:
This diversified approach benefits women founders both directly and indirectly, as inclusive sectors attract broader talent pools.Fred Soneya, Haatch’s Co-founder, noted: “We’re thrilled to deepen our relationship with the British Business Bank and have the opportunity to co-invest alongside some of the best emerging angel syndicates in the country. This additional commitment allows us to broaden our reach and support an even more diverse range of founders, driving innovation and growth across multiple sectors.”
The initiative builds on proven models like Haatch’s Female Founders Accelerator, which has empowered over 470 women, with 98% reporting stronger financial literacy and 94% expanding professional networks. Success stories include:
These successes align with the Invest in Women Taskforce’s £255 million fund, which aims to unlock a potential £250 billion GDP boost through scaling rate parity.
Jenny Tooth OBE, Executive Chair, UK Business Angels Association and member of the Invest in Women Task Force added: “We are very encouraged that this new £7m co-investment from the Regional Angels Programme, delivered through the new Haatch platform, will enable five growing Angel groups to leverage their investment potential into innovating entrepreneurs in key sectors. This development is significant since, for the first time, the Regional Angels Programme funds will enable two proactive female investor-led Angel groups to significantly increase their capacity to invest in more women-powered businesses across the UK. We hope to see this opportunity extended to further emerging Angel groups going forward”.
Despite progress, challenges persist. Unconscious bias sees82% of VC fundsflow to all-male teams, while female founders face tougher scrutiny during pitches. The British Business Bank’s own datarevealsthat all-female teams secured just 2.8% of 2023’s equity investment value.
The Bank’s commitment to investing £50 million into female-led funds and endorsing the Investing in Women Code signals long-term intent. By coupling capital with initiatives like Bootstrap 4F’s £250 million fund-of-funds for female GPs, the ecosystem aims to dismantle barriers—one check at a time.
In closing, this £7 million injection isn’t merely a financial lifeline; it’s a blueprint for inclusive growth. As Haatch and its syndicates deploy capital, the UK moves closer to a future where innovation isn’t stifled by gender, but propelled by it.