Investors who have pledged to back women are outperforming the wider market for the sixth year in a row, according to new government commissioned research that suggests the rest of the investment industry is leaving growth on the table.

The findings, published yesterday in the Investing in Women Code annual report, show that signatories of the Code have once again directed a greater share of funding to female-led businesses than the market as a whole.

For SME owners, the message is hard to ignore. Women-founded companies continue to perform strongly and show clear growth potential, yet they still face outsized barriers to investment and scale. Business Matters has previously reported that female founders receive less than two per cent of all venture capital deployed in the UK, a figure that has barely moved in a decade.

Blair McDougall, Minister for Small Business and Economic Transformation, said: “For the sixth year in a row, Investing in Women Code signatories have outperformed the wider market, showing that backing female founders is good for business and good for growth.”

“Yet women-led businesses still face greater barriers to funding and growth. That is why the Code matters – helping more women start, scale, and succeed, while unlocking talent, creating jobs and strengthening the UK economy.”

The research also underlines the value of targeted programmes that help women start and grow businesses, particularly in regions where female entrepreneurship remains underdeveloped. Strengthening these initiatives, the report argues, would boost innovation, job creation and regional productivity.

The pressure on founders is real. A recent study found that a quarter of female business owners have taken second jobs to keep their ventures afloat as economic conditions bite, even as two-thirds expect revenues to rise over the next year.

Sheila Flavell CBE, chief operating officer of FDM Group, said: “The lack of diversity across industries including technology continues to be a significant barrier to growth. Research showing the clear economic benefits of female-led businesses highlights an issue we must address. While some progress is being made to encourage women through returners schemes and more equitable pay, barriers such as unconscious bias still exist.”

“Upskilling must be at the heart of this effort. From early education through to reskilling and career progression, there should be clear, supported pathways into technical and leadership roles. Businesses and government must work together to invest in training that equips women with in-demand digital and AI capabilities, to unlock the full potential of the UK workforce.”

Money is starting to follow the rhetoric. The Invest in Women Taskforce, which launched with more than £250 million in commitments from Barclays, M&G and others, has now deployed more than £70 million from its £635 million funding pool in its first year.

That sits alongside the British Business Bank’s £400 million Investor Pathways Capital initiative, designed to support emerging fund managers and widen access to investment opportunities.

For female founders weighing up a raise, the practical takeaway is to look first at lenders and investors who have signed the Code. Six years of data suggest they are measurably more likely to say yes.