Women in fintech still grapple with discrimination when trying to secure investment, even as this topic gets attention within the industry. Recent data from Innovate Finance shows troubling trends: investment in UK fintechs fell significantly, and women-led ventures saw an even greater drop—78% compared to the overall 37%.
The numbers reveal that women-founded fintechs attracted just under £100 million, which is about 3.3% of the total investment. This situation hasn’t improved much since 2018. Back then, a report indicated that just 3% of the £2.61 billion in venture capital went to women-led firms. Charlotte Crosswell, former CEO of Innovate Finance, noted in 2019 that the lack of women on investment teams contributes to this disparity.
Looking at 2024, the increase in investment for women-led fintechs since 2018 is a meager 0.3%. Maria Scott, founder and CEO of Taina Technology, pointed out that female founders often face bleak funding statistics, even though they generally make sound financial investments. She believes we need more role models to inspire future female entrepreneurs. Scott also mentioned that many women founders are prudent with their finances, which might make them hesitant to seek funding in a challenging market.
Innovate Finance stresses that female fintech founders in the UK encounter considerable obstacles in obtaining essential funds. The organization emphasizes the importance of creating equal opportunities and fostering innovation from diverse leadership teams.
Nina Foote, a partner at the venture capital firm Volution, echoes this sentiment. Although there’s increasing awareness and targeted efforts, female founders still face significant challenges. She argues that while there’s promise in current initiatives, more support is needed to provide women with the necessary networks and capital to scale their businesses.
Foote highlights the crucial roles of leaders like Anne Boden, Anna Maj, and Meri Williams in paving the way for future female entrepreneurs. However, she insists that male allies are equally important in advancing these efforts.