Funding Freeze: Why the UK Keeps Failing Female Founders

UK’s much-anticipated fund for female entrepreneurs is delayed – and with it the hopes of early-stage women-led start-ups.

Female entrepreneurs in the UK are facing yet another frustrating pause in promised support. The Invest in Women Taskforce – a government-backed initiative launched in 2024 to address gender disparity in business – was supposed to start deploying funding in early 2025. But now, following months of silence, MPs have confirmed the fund won’t begin operating until late 2025.

Why Is This Fund So Important?

Let’s start with the numbers.

In 2024, only 1.8% of the UK venture capital went to all-women founding teams.

That is not a typo. Out of billions invested in start-ups, barely any reached business led by women – and that figure has not budged in five years.

Venture capital is the financial fuel behind most high-growth start-ups. It comes from private investors looking for big returns, but the gatekeepers are overwhelmingly male, meaning women often struggle to get in the room, let alone secure the cheque.

That’s where the Invest in Women Taskforce comes in. It was created to unlock over £250 million in capital, mostly from private sources, to funnel into female investment decision-makers – people who statistically invest more in female founders.

Who’s Running the Show?

The task force is co-chaired by Debbie Wosskow, an entrepreneur, and Hannah Bernard, Head of Business Banking at Barclays. Its partners include Morgan Stanley, Aviva and the British Banking Business Bank.

Their strategy is clear: increase funding for women by changing who holds the power to invest. Studies have shown that when women control capital, they are more likely to fund diverse, including business – not because of bias, but because of broader investment lenses.

Logo of the Invest in Women Taskforce, UK Government. 

So why the delay?

Despite the Invest in Women Taskforce launching with bold ambition, the rollout has been slowed by political concerns. Parliamentary hearings have revealed a worrying lack of clarity around when and how funds will be deployed.

The initiative relies heavily on coordination between public and private sectors — and with a changing government agenda, internal reshuffles, and no legally binding timelines, momentum has stalled.

Why Delays Hurt

When fundings freezes, so does innovation. Nearly 1 in 5 female business leaders report scrapping or postponing plans due to lack of finance.

In health technology or sustainability sectors, early money is make-or-break. Without capital, they can’t develop prototypes or navigate costly regulatory steps, meaning ideas get shelved and momentum fades.

The Invest in Women Fund was never just about money.

It was about the belief that women’s ideas are worth backing and their businesses worth scaling.

Delaying it sends the message that economic equity for women can wait, highlighting the urgent need to resolve parliamentary concerns promptly.

References

Group, F. F. (2025, May 23). Women in VC & Startup Funding: Statistics & Trends (2025 Report). Founders Forum Group. https://ff.co/women-funding-statistics-2025/

Invest in Women Taskforce. (2024). Funding female-powered businesses. https://www.investinwomentaskforce.org/

UK Government Support for Women in Trade. (2025, July 3). Business.gov.uk. https://www.business.gov.uk/campaign/trade-gender-equality/uk-government-support-for-women-in-trade/