Number of angel investors in female-led businesses falls

New analysis shows a continuing trend of falling angel investment in female-led businesses.

woman working from home at night

 

The proportion of angel investors putting money into female-led businesses has dropped significantly over the last year, according to new analysis which says this is part of a continuing trend.

Business data platform mnAI says the total number of investors has also fallen with women investors – who are more likely to invest in female-led businesses – dropping significantly. The total number of investors is down from 274,789 in 2016/17 to 188,117 in 2020/21 – a fall of 86,672 investors. Between May 2016 – May 2021, the number of female investors dropped by 23,647, from 66,444 in 2016/17 to 42,797 in 2020/21. mnAI says the decrease in investors began in 2019/20, slipping by 33,933, then by 49,530 in the following year.

Drop in investment in female-led businesses

Its analysis shows that, over the last five years, the number of women investing in female-led businesses dropped by 6.05% and the number of men investing in those same businesses dropped by 11.76% over the same period of time. Its figures show the number of women who invested in female-led businesses in 2016/17 was 18,671 (28.1%), but by 2020/21 that number had fallen to 11,298 (26.4%).

The total number of male investors in 2016/17 was 163,829, of those, 41,776 (25.5%) were backing businesses with at least one female founder. By 2020/21, the total number of male investors had dropped to 115,034 and the number of those investing in female-led businesses has dropped even more, with just 25,883 (22.5%) opting to put their money into female-led businesses.

A spokesperson for mnAI says: “The trend toward female businesses being overlooked in favour of the alternative has been gradually growing over the last few years, with the percentage of angels investing in female-led businesses decreasing. The percentage of angels investing in female businesses has been decreasing year-on-year since 2016/17 and has shown no signs of stopping up to now. This clear decrease in the numbers brings with it a lot of questions about the future of female-led businesses and how they can achieve that crucial funding to get their business off the ground.”



Post a comment

Your email address will not be published.

Your Franchise Selection

Click the button below to register your interest with all the franchises in your selection

Request FREE Information Now

Your Franchise Selection

This franchise opportunity has been added to your franchise selection

image

title

Click the button below to register your interest with all the franchises in your selection

Request FREE Information Now


You may be interested in these similar franchises