Improving gender equality in tech could deliver a material boost to investor returns, research has found, amid a government-backed campaign to support more female founders.
New data suggests woman-led businesses deliver 35% higher returns than male businesses, despite receiving just 2% of venture capital funding.
The figures were part of a female entrepreneurship roundtable at Tramshed Tech in Wales.
Attendees of the event committed to seeking additional investors for the Women Backing Women Fund – an initiative from the Invest in Women taskforce – to improve the balanced distribution of finance and unlock what could be a major driver of economic growth in the UK.
The event was attended by Chancellor Rachel Reeves, First Minister of Wales Eluned Morgan, Wales Secretary Jo Stevens and the co-chairs of the Invest in Women Taskforce Hannah Bernard from Barclays and Debbie Wosskow, a multi-exit entrepreneur.
The data also revealed that Wales ranks the highest among UK nations and regions for mixed gender leadership teams in business. Mixed gender founding teams in Wales receive 22.3% of investment in the nation, beating the UK average of 17%.
“As a female founder myself, I know firsthand the unique challenges women face when building and scaling businesses in Wales,” said Louise Harris, co-founder and CEO of Tramshed Tech.
“This is personal for me, and a critical step toward our vision of making Wales a global hub for high growth tech companies – one where all entrepreneurs play a leading role in shaping our future economy.”
The discussion saw a commitment that funding from Women Backing Women is distributed across all UK regions.
“Ensuring that female entrepreneurs across the UK, including here in Wales, have access to the investment they need is crucial for driving economic growth and innovation,” said Reeves.
“The work of the Invest in Women Taskforce is unlocking investment opportunities for women-led businesses. By creating a more inclusive investment landscape, we can help ensure that female entrepreneurs thrive, strengthening our economy and fostering long-term success.”