Government-backed Taskforce, Invest in Women, has launched its £250m ‘Women backing Women’ fund – exceeding its aim of creating the world’s largest investment pools for the backing of female business

British Business Bank, Morgan Stanley, Visa Foundation, BGF and Aviva have all stated their commitment to invest in female founded businesses via the ‘Women backing Women’ fund.

The fund’s investment pool and fund manager selection process was launched earlier this week at an event at the Lord Mayor’s Mansion House. The event reiterated the taskforce’s commitment to breaking down barriers to capital for women.

One way they are doing so is by ensuring that all capital in the ‘Women backing Women’ fund is deployed via female investment decision-makers across the UK in the knowledge that female investors are twice as likely to invest in female-led and mixed businesses. 

The fund launch comes as new data shows that all-female founded businesses received just 1.8% (£145m) of the total value of equity investment in the first half of 2024, a fall from 2.5% in 2023. 

This stat is particularly sobering given that, if women started and scaled businesses at the same rate as men, it would deliver a potential £250 billion boost to the UK economy.

With over 80% of the beauty industry’s workforce being female and 86% of these people being business owners, beauty has a unique ability to unlock economic growth for women and level the playing field when it comes to investment.

The Council was pleased to attend the fund launch, with Advisory Board member Renee Parker saying: ‘I’m delighted to witness such enthusiasm and shared public and private sector support for female entrepreneurs in the UK. 

‘This £250M capital commitment will help unlock the currently under-realised commercial power and GDP growth that women are proven to deliver as thought leaders and business owners.’

The Taskforce has been repeatedly backed by the government with Chancellor Rachel Reeves showing clear support for the ‘Women backing Women’ fund. She said: ‘We all, including myself as the first female Chancellor, have a responsibility to make the economy work better for women. 

‘Initiatives like the Invest in Women Taskforce funding pool are a fantastic example of the public and private sectors working together to help unlock the potential of female founders and seize opportunities to fire up the government’s number one mission of economic growth.’

You can read more about the Invest in Women taskforce and the fund here.