It’s no secret that the first UK female chancellor in 800 years, Rachel Reeves has received lots of criticism and ridicule about are decisions for the country.
But hold on!
Don’t worry this blog is not about politics.
No, no, no, no, no.
It’s about sharing opportunities and tactics for small business owners and entrepreneurs like you, who don’t have the ‘right connections’ or a rich aunty to guide them on the exciting but difficult journey of building a business.
It’s about giving you the tools to elevate your business solutions so that your ideal customer clearly understands how your product or service is the answer to their problems.
Anywhoo, back to this funding blog post!
The £500m funding problem
It’s a lovely summer’s day during the Investing in Women Code 2025 report launch, and Rachel Reeves announces £500m of government funding for women, ethnic minorities, people with disabilities and those from deprived backgrounds.
£400m provided by the government-owned British Business Bank (BBB), will be spread across three strategic pillars:
1. Backing diverse fund managers
One of the main problems in the venture capital world is that most of the people look like each other and tend to give investment to people who look just like them.
Mirror, mirror on the wall!
Having diverse investors on the other side of the table, who invest in early-stage businesses with high growth potential, could mean that underrepresented entrepreneurs get a chance at receiving investment.
2. Investing in micro-funds
With £10-15m, these micro-funds are often the first step on the venture capital ladder for new investors ready to dish out the cash.
3. Backing partners / venture capital funds to support talented people
To build their track record of investing in small businesses, by providing training to those without personal wealth or connections, the opportunity to become investors.
This BBB economic package is due to drop in 2026 and will target at least 50% of investment going to female fund managers.
The 2025 Investing in Women Code report claims that investing in female and ethnic minority-led businesses could add 13% to the value of the UK equity market.
So this funding package is smart economics.
This investment matters for your business
Why?
Research shows just 2p of every £1 invested in venture capital funding in the UK goes to female-founded businesses and only 13% of senior individuals on UK venture capital investment teams are women.
So yeah, there is work to do!
But now you can look forward to:
- Increased funding opportunities through diverse fund managers – now there will hopefully be more mirrors on the wall…
- Better access to networks previously closed to many women entrepreneurs, those with disabilities and people with an ethnic background
- Enhanced support systems designed specifically for underrepresented entrepreneurs
- Greater representation in the investor decision-making processes that affect your funding opportunities
Be ready, so you don’t have to get ready!
You know good planning is key for your business, for any successful business.
Eventhough this Investor Pathways Capital initiative starts in 2026, don’t wait until the new year to start thinking about how to make your business investor-ready.
If your business is UK-based, has a high-growth potential and you’re looking for investment around the £10,000 to £2 million mark, this and (other opportunities) is something to be ready for.
What’s the connection between the Investing in Women Code report and the BBB?
I’m glad you asked!
The Investing in Women Code report is essentially a promise by financial institutions to give women a fair chance to get business loans and investments.
There report is published yearly to show how well these institutions are living up to their promise.
These financial organisations include Community Development Finance Institutions (CDFIs), which are like neighbourhood banks with a mission to help entrepreneurs who usually get a big fat “no” from traditional banks.
Trends show women founders and those with an ethnic background get a higher proportion of rejections.
With CDFIs usually having a larger proportion of women in their leadership teams, they tend to support more high-growth potential underrepresented founders.
The British Business Bank gives chunks of cash like the £500m mentioned in this blog to diverse fund managers, including CDFIs, so they have the capital to invest.
So, the overall aim of the Invest in Women Code is to build a bigger and fairer money pipeline, so that anyone with a great business solution has a real chance of receiving funding.
Real success stories
The Investing in Women Code programme builds on existing wins.
After being turned down by traditional banks, Ada Uchegbu, founder of Homeland Delicacy secured funding through Purple Shoots, a CDFI and Investing in Women Code signatory.
CDFIs are mission-driven lenders which exist to address inequalities in access to finance.
This allowed Ada to transition from cooking West African takeaways from her home to infusing recipes from the Motherland with her own style in Europe’s largest purpose-built food hall, Cambridge Street Collective in Sheffield.
The loan from Purple Shoots meant Ada could scale up her business and buy equipment.
Purple Shoots is a specialist microfinance charity and Investing in Women Code signatory. It offers loans from £500 to £5,000 designed for start‑ups, sole traders and micro‑businesses.
After a devastating MRSA infection in 2007, Lyndsay Watterson had her left leg amputated and created her walking stick business, Neo Walk from her kitchen in York in 2013.
Lyndsay created prototypes by moulding acrylic in her oven, using a wine bottle to shape the handles. Real growth started in 2020 and by 2022 Lyndsay had eight staff.
An advisor from Innovate UK EDGE introduced Lyndsay to Investing in Women Code signatory – the Business Enterprise Fund (BEF).
BEF inspired by her story gave Lyndsay a £60,000 loan.
Remember these tips when applying for any type of investment
Market Research: Investors want to see that you understand your market, know your competition, target customers, and market size.
Financial Projections: Be realistic and make sure you can clearly explain your assumptions. Binge on a few seasons of Dragon’s Den to remind yourself how this can go well and terribly wrong!
Constructive feedback: Use it to improve upon each application you send.
Don’t apply too early: Have sufficient traction and know where you’ll spend the money before asking someone else to invest in your business.
Join accelerator programmes: To increase your network and build key connections within your sector.
Oh, just in case you did the maths and are thinking, “where is the other £100m!”
The BBB has already supported the Women Taskforce by investing £50m into female-led funds through its existing programmes.
It will add another £50m to female-led funds that are aligned with the eight growth-driving sectors of the governments new Industrial Strategy.
These include:
Manufacturing and Engineering: Advanced manufacturing and engineering solutions
Technology and Innovation: Including AI, fintech, and digital solutions
Healthcare and Life Sciences: Biotechnology, medical devices, and health tech
Sustainable Business: Clean energy, circular economy, and environmental solutions
Creative Industries: Design, media, and digital content
The BBB considers diverse founders to include women, ethnic minority founders, disabled founders, and founders from lower socio-economic backgrounds.
Adelina, Your Content Marketing Strategist
Jeitent Content Marketing 
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