Over the past several years, we’ve proudly partnered with Barclays on our research into all aspects of female entrepreneurship. Together, we’ve highlighted a range of different challenges women-led startups face, showcased some of the country’s most trailblazing female founders, and put forward a variety of proposals to both the government and the private sector to ensure nobody is unfairly held back in their ambition to build a flourishing business. In this year’s report, which shines a spotlight on the critical role that female angel investors play in supporting female founders in every corner of the United Kingdom, we are delighted to have also joined forces with the Invest in Women Taskforce, which has recently raised £255 million to invest in female-founded businesses.
Executive summary
The UK’s entrepreneurial ecosystem showcases both vibrancy and disparity. While sectoral innovation clusters around the country highlight regional strengths, investment remains heavily concentrated in London and the South East.
Angel investors are a crucial source of early-stage capital and nurturing companies towards the venture capital stage. Angel investors contribute approximately £1.5 billion annually to small businesses. Often the first to back startups, their support extends beyond financial input, as they often mentor and guide entrepreneurs through the challenging early phases of business development.
Similarly to the regional distribution of broader venture capital and private equity activity, angel investors exhibit geographic imbalance. Nearly 56% of angels were based in London and the South East in 2019. Over half of angel investment is focused on the golden triangle of London, Oxford, and Cambridge. This concentration limits the flow of capital and expertise to underserved regions, perpetuating regional inequalities.
Increasing the participation of female angel investors would help address these regional imbalances and drive diversity. Though still underrepresented at only 14% of the total angel investor population in 2022, they are emerging as agents of change. As our qualitative research shows, they tend to prioritise investments with social and local impact, favouring diverse founders and female entrepreneurs in particular. Out of all companies backed by female angel investors, about 25% had at least one female founder. Female angels have been involved in deals worth £2.34 billion over the past decade, backing over 4,000 businesses – including over 1,000 female-founded businesses – and helping to create more than 10,000 jobs. Angel groups with significant female participation allocate a higher share of funding to all-female teams, creating a ripple effect that benefits regional innovation ecosystems.
However, barriers persist. Regional disparities in angel networks, education, and deal flow hamper progress, especially outside established hubs. Tailored support, such as lower investment thresholds, structured education and mentorship programmes, and operational funding for regional angel groups can expand female participation. Meanwhile, tax incentives like EIS/SEIS remain critical for risk-aware investors. While there have been welcome developments, our research shows that more targeted actions could help to support angel investing activity in the regions, and especially among women.
In addition to desk research and call for evidence, this report draws on six roundtables across the UK with 55 active or prospective angel investors, leaders of angel groups and syndicates – collaborative networks of individual investors who pool resources to make larger investments – and other key ecosystem players.
FOREWORD — Poppy Gustafsson OBE
If women started and scaled their businesses at the same rate as men, we could unlock a staggering £250 billion for the UK economy. However, it is clear that significant barriers persist.
In my role within government, our number one mission is for economic growth, and so tackling this problem is an obvious opportunity to unlock untapped economic potential across the country.
And as the former co-founder and CEO of Darktrace, I have first-hand experience of the transformative power of investment.
The recently announced Invest in Women Taskforce funding pool, which has raised £255 million to be invested through female-led investing teams to supercharge female-led businesses, is a big step in the right direction. But more must be done.
This report, Gaining Altitude: Female Angel Investors Across the Regions, underscores the critical role female angel investors play in addressing regional and gender imbalances in the investment landscape. Female investors are not only expanding the flow of capital but are also prioritising businesses with local and social impact, supporting diverse and female entrepreneurs. But it also highlights that there is a clear disparity in their ability to access investment. Only 1.8% of equity capital goes to all-female-founded businesses, women represent just 11% of venture capital decision-makers, and only 14% of angel investors are women.
The insights in this report make it clear that solutions exist. Building on initiatives like the British Business Bank’s Regional Angels Programme, supporting the emergence and growth of angel syndicates, and creating a centralised educational platform can provide the tools, knowledge, and confidence for more women to engage as investors. Such actions would help level the playing field for female founders and foster a more equitable and inclusive entrepreneurial ecosystem across all regions.
The industry-led, government-backed Invest in Women Taskforce brings together a group of dedicated and ambitious organisations, who exemplify a deep commitment to this agenda. This report, I believe, will not only spark new ideas but also inspire action to continue driving meaningful progress. Together, we can ensure that investment flows to every corner of the UK, unlocking the full potential of Britain’s talent and innovation.
Baroness Poppy Gustafsson OBE is the Minister for Investment in the Department for Business and Trade and HM Treasury.
Foreword — Hannah bernard obe and debbie wosskow obe
We are pleased to introduce this report from The Entrepreneurs Network, focused on enhancing women's participation in angel investing across the UK. As co-chairs of the Invest in Women Taskforce, we are committed to driving meaningful change and creating a more inclusive investment landscape.
This Taskforce was established with a clear mission: to make the UK the best place in the world to be a female entrepreneur. But let’s face it – this mission is easier said than done when you’re up against centuries of systemic bias and a funding landscape that is male dominated. We all know female-powered businesses are significantly underfunded, with only a fraction of investment capital reaching female founders. The barriers facing female entrepreneurs seeking investment are significant, but they are not immovable. Through the taskforce we have three primary objectives to drive our mission forward, address the barriers and challenge the status quo:
Deliver at least £250 million in funding through female-led investment managers, supporting UK-based female-powered businesses at all stages of growth.
Increase the proportion of angel investment into female powered businesses, and increase women’s representation in the angel investor community, up from the 14% as at 2022.
Improve the availability of entry-level funding, such as grants, to enhance access to finance for women-led businesses and boost founders' confidence to start, develop and grow.
In November 2024 we celebrated the remarkable progress we have already made, including the launch of the Invest in Women Taskforce funding pool, which has raised over £250 million to support female investors and entrepreneurs. This funding pot, backed by leading financial institutions and organisations, is a testament to the collective commitment to driving gender equality in the investment world.
As we continue to build on this momentum, we remain focused on creating opportunities for women to thrive as angel investors and entrepreneurs. It is clear from this report that the role of syndicates and networks cannot be underestimated in enabling women to consider angel investing. They provide women with a sense of community, help demystify the process and let women share their expertise and experience. Hearing directly from women angel investors in this report has proven enlightening with many similar themes emerging, from women stating “Once you’re in the group, you can find out everything you need to know.”… to the power of having women in the conversation… “For the first time, I saw women on both sides of the table – investors and founders. It felt like the ecosystem was finally starting to reflect the world we live in”.
This is very much the ethos of the Invest in Women Taskforce – we see time and time again how women back women and the same is true of angel investing; in 2022 just 14% of angel investors were women, 25% of female powered businesses are backed by female angels. By increasing the number of women angels, more capital will be unlocked to female founders to scale their business. We already know that if women were to start and scale businesses at the same rate as men, that would mean a potential £250bn boost to the UK economy so we understand how vital investment is needed into early-stage female-powered businesses to scale.
This report draws on six roundtables held across England and the devolved nations with 55 active or prospective angel investors, angel syndicate leaders, and other key ecosystem players. This report shows that, for many women, syndicates provide not only financial opportunities, but also a sense of community. Whilst these developments are positive and offer a helpful blueprint for how to enable more women to consider angel investing, there is still a long way to go. In particular, whilst certain regions’ syndicates are thriving, others are still facing challenges for which further support and interventions may be required. The role of other Government policies, in particular the introduction of tax incentives such as the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS), have encouraged an environment that is much more conducive to angel investing. These changes have incentivised investments across the UK, but raising awareness of these schemes to investors and founders alike remains critical.
We would like to extend our personal ‘thank you’ to the contributors behind this report. It is uplifting to see such a willingness to share stories, guidance and inspiration. Despite the challenges faced, their success is an undeniable show of hope and a potential source of belonging for future female angels.
We recognise that there is far more work to be done. Changing the game for aspiring female angels and female entrepreneurs will take more than capital: it will take a community – of investors, entrepreneurs, policy makers and allies – who share our vision. Through addressing regional imbalances and supporting the work of female led networks and syndicates, the UK can unlock the full potential of its angel investing ecosystem, driving growth and opportunity across all regions.
Hannah Bernard OBE and Debbie Wosskow OBE are Co-Chairs of the Invest in Women Taskforce.
Foreword — jenny tooth obe
Our work in the Angel Investment Sub Committee of the Task Force recognises the vital role that women angel investors play in bringing risk capital to support the early stage growth of women founders across the UK and that by increasing the number of women angel investors we will significantly impact the level of capital available for female founders. To achieve this, we are working on three key areas with the aim of addressing the current barriers at practical and policy level to unlock the enormous potential of women angel investment across the UK – and as a core complement to the exciting new £255 million fund, recently launched through the work of the Taskforce and the tenacity of our Co-Chairs, Hannah Bernard and Debbie Wosskow.
One of the key areas we are keen to address is the existing regional imbalances as revealed in the joint UKBAA-Beauhurst report in 2022. It was identified that of the 5,000 women investors, nearly half of their investment was focused on London. In many areas of the UK, women angel investment amounted to less than 5% of the total, with the figure dropping to less than 1% in Northern Ireland.
However, against these odds, more and more women have been stepping up to address these disparities in their localities and regions. Many have formed new syndicates, some of which are all-female, or with a high proportion of female investors. But all of these groups share a common focus: backing women founders. These women are raising awareness, providing bespoke new educational programmes and mobilising women to join syndicates. By facilitating smaller investment amounts, they are enabling women to pool their capital, share their knowledge and skills, and build diverse portfolios of women-led businesses.
This research has enabled us to gain valuable insights into the experience of some of these women angel leaders in the regions and what more is needed to support their impact.
Following on from it, we will be revisiting the findings and data from the Beauhurst 2022 Women Angel Insights report to establish new baselines and get the latest data on women investment across the UK. We are keen to identify the impact of both policy and practical measures supported by many players across the UK, including the actions of women-led syndicates, in growing the pool of women angel investment to back many more women innovators across the UK regions.
Jenny Tooth OBE is the Chief Executive of the UK Business Angels Association.
Introduction
Securing funding from angel investors has been instrumental in the success of countless startups. Over the past two decades, a strong angel network has taken root in the UK, frequently highlighted in our conversations with entrepreneurs. The British angel investment market is the largest in Europe, and in terms of its age and functioning, the UK is the second most developed angel market after the US. It is not unusual to hear statements like, “I wouldn’t be here without my first angel backers,” even from those now raising Series B funding from venture capitalists (VC).
Angel investing – where individuals invest in startups with their personal wealth in exchange for equity – plays a role in supporting diverse entrepreneurs and growth across the ecosystem. Usually providing smaller cheques, it is a source of capital that is especially prized by companies that may not immediately be on the VC radar. Angels often step in at a stage when startups are considered too early or too high-risk for VC investment.
Angels are not insignificant contributors to the investment ecosystem. In 2022, small businesses were receiving roughly £1.5 billion annually through angel investment, with the overall value of deals involving angel investors exceeding £2 billion each year. Individual business angels and angel networks participated in nearly 30% of all announced deals in 2022. Having overtaken crowdfunding in 2021, business angels were the second most common investor type in the UK equity market in 2022, and seem to have been the least impacted by market conditions that year.
But a fundamental challenge persists: the unequal distribution of angel investors across the regions. The concentration of angel investors is skewed towards London and the South East, mirroring the VC and private equity (PE) landscape. In 2019, nearly 56% of active angels in the UK were located in London and the South East, with around 40% of total angel investment deals made in London alone and the South East and Cambridge capturing nearly 11% and 9% respectively. Reflecting the geography of angel domicile, low levels of activity are seen in Northern Ireland (0.7% of total deals), Wales (1%) and the East Midlands (1.3%).
This regional distribution of angel investing activity mirrors the broader VC and PE investing landscape. Out of total equity investments in 2023, London accounted for 48%, followed by 9% in the South East, 6% in Scotland, 2.9% in Wales, and 1% in Northern Ireland.
The regional disparity not only affects the availability of capital, but also the diversity of expertise and networks that angel investors often bring to the table for founders. Angel investors often bring more than just funds. They contribute valuable sector expertise, introduce founders to potential clients or partners, and provide guidance based on their own entrepreneurial experiences. The regional imbalance can create a self-reinforcing cycle, where successful startups and experienced investors continue to cluster in already-established hubs, further widening the regional divide.
This picture suggests that the level of entrepreneurial opportunity varies across the UK. An assessment of the demand for growth capital throughout the UK reveals that most regions are struggling to attract the investment they need, but this is particularly acute outside the South East. At the same time, the North West has more startups than the East of England, which includes Cambridge.
The regional landscape of angel investing is changing towards a more complex inter-regional web of capital flows. Traditionally, angels largely invested locally, explained by better information flows and quality of investor-investee matching, improving decision-making as a result. But recent evidence reveals that angels rarely make the largest investments in their home regions. Multiple angels and other ecosystem key players who we spoke to for this report stressed that local investors find it challenging to identify and capitalise on these significant opportunities in their home regions.
Against this backdrop, encouraging more diversity among angel investors in the regions could counteract this trend and some challenges of thin markets observed in some regions. Female angels, in particular, tend to invest differently. Conversations with 55 angel investors and other key players from across the UK-wide angel investing ecosystem that we undertook during the research for this report revealed that women often prioritise businesses with social and local impact and are more inclined to back regional startups, counterbalancing the outflow of capital to broader markets.
Though still under-represented at only 14% of the total angel investor population in 2022, female angels make a significant contribution to the investment ecosystem. Female angel investors have been involved in deals worth £2.34 billion over the past decade, backing over 4,000 businesses – including over 1,000 female-founded businesses – and helping to create more than 10,000 jobs.
Women are also more likely to support more diverse founders and invest in female entrepreneurs in particular. This point was not only evident from the regional roundtables we organised for this report, but is also supported with data. Out of all companies backed by female angel investors, about 25% had at least one female founder.
In 2023, angel groups with at least 15% female investors backed over four times as many female-led businesses as those with fewer female investors. These groups also allocated 21% of their total investments to all-female teams, three times the 7% invested by angel groups with less than 15% female investors.
Female angel investors are active across every region, but over two thirds of their investments were made in London and the South East of England, reflecting the broader investing landscape. Just 5% went to startups in the North West and South West, while 1% went to startups in Northern Ireland. This could reflect the quality of potential deals that can attract investments in some regions. However, large angel cheques do reach areas like Northern Ireland, which are otherwise significantly underserved by female angels.
If the goal is to stimulate local economies by boosting demand for capital from a greater diversity of founders, expanding a region’s investor base can only be a good thing. For this report, we organised a series of six roundtables in London, Birmingham, Newcastle, Edinburgh, Belfast, and Cardiff to investigate what is needed to grow the pool of female angel investors in different parts of the country. In addition to desk research, this paper draws on these roundtables with 55 active or prospective angel investors, leaders of angel groups and syndicates, and other key ecosystem players. Their unique insights enable us to pinpoint the obstacles to greater participation of women across the UK.
The goal of this report is to provide qualitative insights to understand the current landscape for female angel investors across different UK regions and to identify potential strategies for increasing their participation. We believe that while our qualitative findings offer valuable perspectives on the challenges and opportunities for diverse angel investors, a comprehensive, updated quantitative analysis would be most beneficial to understanding whether developments of the last two to three years have begun to have a measurable impact on the regional angel landscape. Such quantitative data would complement our qualitative insights and provide a more complete picture of the evolving angel investment ecosystem in the UK.
Tailwinds
The winds of change are lifting angel investing. The conversations we held with angel investors and other key ecosystem players have revealed that larger deal sizes in the regions, a shift towards bigger investing rounds and growing diversity in the investor pool, driven by the rise of formal angel groups and syndicates – collaborative networks of individual investors who pool resources to make larger investments – and awareness-raising activities spearheaded by investors themselves, have been reshaping the landscape.
The Investing in Women Code was established following the recommendations of the Alison Rose Review of Female Entrepreneurship. The Code is aimed at increasing transparency around the level of investments into female founders by providing annual gender-specific data on equity and debt finance. To date, the Code has 270 signatories from finance providers including banks, VC funds, and 44 angel groups.
Government policy has played no small part in changing the investment landscape. From the introduction of co-investment funds, such as Angel CoFund, to tax incentives like the Enterprise Investment Scheme (EIS) and its seed-stage equivalent SEIS, policymakers have been working to cultivate a more fertile ground for investing.
The Government introduced the Enterprise Investment Scheme (EIS) in 1994 to encourage individuals to play a larger role in funding startups. By offering tax benefits and downside protection, the schemes reduce the risks associated with investing in high-risk, high-reward ventures.
Through EIS, investors can claim income tax relief of up to 30% on investments up to £1 million (£2 million if at least £1 million is directed towards knowledge-intensive companies) in qualifying businesses. Investors also benefit from capital gains tax exemption on investments held for at least three years, loss relief against income tax, and inheritance tax exemption on EIS shares.
Seed Enterprise Investment Scheme (SEIS) is designed for earlier-stage innovation. Introduced in 2012, it was specifically created to further incentivise investment into very early-stage businesses. SEIS follows the same principle as EIS, but with a higher rate of income tax relief at 50%, but with a lower investment ceiling.
One insight from the roundtable discussions is how unambiguously valuable investors find SEIS and EIS. It was quoted as particularly game-changing for women. As one angel group co-founder told us, “given the higher risk associated with early-stage investments, the tax incentives offered by EIS and SEIS help mitigate potential losses, providing women investors who may be more risk aware, with greater confidence and security in supporting early-stage ventures.”
EIS also provides a passive investment option with tax relief. This allows individuals to invest in startups without direct involvement, catering to those who want exposure to the startup ecosystem but may not have the time or expertise for active angel investing with a high degree of participation in a startup’s journey.
Despite the clear benefits of SEIS and EIS, more could be done to increase the take-up of the schemes. Roundtable participants in the regions told us that there is often a lack of knowledge about the schemes and what they offer. This is where key ecosystem players, such as angel groups and banks, can step in to raise awareness among both investors and entrepreneurs, especially within the under-represented groups.
Recommendation 1: Convene an ecosystem-led national awareness campaign for SEIS and EIS.
The government should act as a convener to facilitate a national awareness campaign run by key ecosystem players, such as angel groups, banks and financial services firms. It should be aimed at increasing knowledge and uptake of the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS), with a focus on new and prospective investors across regions and among female investors. The Government’s role won’t imply public funding but rather will leverage its position to bring together different parts of the ecosystem.
angels in the regions
Another Government-led initiative that was frequently mentioned by our roundtable participants is the British Business Bank’s Regional Angels Programme (RAP). Designed to address regional imbalances in access to early-stage equity finance for high-growth potential businesses across the UK, it has been a beacon of hope for underserved parts of the UK in particular.
The Regional Angel Programme which launched in 2019 has had an important objective to increase the supply of capital, bringing £250 million co-investment capital through providing pots of £5-£15 million to selected angel groups and early-stage funds to back entrepreneurs in the regions and professionalise the ecosystem. So far, £150 million has been invested, with 85% of this going to companies outside London.
But there is scope to strengthen the Programme’s impact. While some of our roundtable participants praised its effectiveness, others noted that angels in the regions, including nascent and female-led angel groups, are struggling to benefit from it.
The current requirements mean that it is mostly well-developed angel groups that can access the Programme. These groups tend to be based in financial hubs, such as London or Scotland, and have VC-like structures. The Programme’s eligibility criteria create structural barriers for many smaller and nascent angel groups, including women-led ones. There is more to be done to ensure the Programme supports the growth of diverse angel communities in the regions.
Recommendation 2: Revise the requirements and structure for access to the RAP to enable smaller and nascent angel groups, including women-led ones, in the regions to benefit from the Programme’s co-investment funds.
Many regional angel groups, including women-led ones, are nascent and therefore don’t fit the requirements of the RAP. They do not usually have an extensive track record of annual multi-million investing, or evidence of exits.
A series of revisions to the RAP are needed to better align the Programme with its primary aim of reducing regional imbalances and enhancing the British Business Bank’s role in supporting regional growth. The changes, covering eligibility criteria and structures for access, would help redirect more capital to truly underserved regions, amplifying the Programme’s impact on regional economic development. It would also enhance additionality, as investments in areas with less developed angel ecosystems are less likely to have occurred without RAP support.
By concentrating resources on regions with the greatest need for intervention, the Programme can achieve better value for taxpayer money and more effectively drive the professionalisation of angel investing beyond the capital.
“Women come in tribes, that’s what women do”
Until very recently, there was a significant lack of female angel investors in the regions outside of London and the South East. This is now changing. And yet, at our roundtable in Birmingham, one angel investor mentioned that she had never come across another female angel investor until an event she attended a day earlier. If there is one lesson from this, it is that social infrastructure matters.
Here is where angel syndicates and groups come in.
Angel syndicates
Most angel groups across Britain are based on syndicate models. The UK Business Angels Association has 125 angel groups or syndicates within its community.
Syndication offers a number of benefits. It involves pooling deal flow, creating structures for collaborative due diligence, and allowing smaller investments to be pooled. The structures of doing that are flexible and varied.
In Scotland, for example, the syndicate model was supported historically by public funding, translating into more structured support many syndicates offer to their angels. Syndicates like Archangels and Mint Ventures emphasise structured investments, due diligence, and collaborative decision-making, which appeal to new female investors.
Investors at our Edinburgh roundtable noted that syndicates provide a “safer and more structured entry point,” particularly for those unfamiliar with the nuances of investing. This structure fosters confidence by alleviating fears of inadequate knowledge, a sentiment echoed at the Newcastle session: “Once you’re in the group, you can find out everything you need to know.”
Opening doors for female investors
Even though this model has existed for nearly 40 years, angel syndicates were historically led by men, and often composed of all-male investors. Women-led angel syndicates and groups are a more recent development, which have fundamentally altered the perception and accessibility of angel investing. Historically, angel investing was seen as the preserve of high-net-worth individuals in urban hubs, often dominated by men. For women, the barriers were steep: from high financial thresholds to a lack of visibility and role models. Syndicates and angel groups, like Mint Ventures, Lifted Ventures and many others whose leaders and members we had at our roundtables, are actively dismantling these obstacles.
Affordable investment entry points have proven effective in encouraging participation. Many women-led groups are offering angels to start with £2,000 to enable them to gain confidence in investing. Some groups allow for even lower minimum cheques. Mint Ventures, for example, lets members invest as little as £500, enabling women from diverse financial backgrounds to take their first steps into investing. One Edinburgh roundtable participant noted: “This is the first time I’ve seen angel investing framed as something I could actually do – not just something I’d hear about in the news.”
Allowing small ticket sizes is a way to democratise angel investing and a pathway for women to get started and gain confidence. But the goal is not to have many investors with only small contributions. Instead, this approach provides an entry point that encourages growth in investment amounts as confidence builds.
While angel syndicates and groups provide valuable support to the investment ecosystem, they face significant challenges. Sustaining them over the long term requires significant resources, which are often scarce in smaller regions. Running an angel syndicate and group is inherently expensive due to the costs associated with providing access to deal flow, supporting pitch presentations, facilitating investor interactions, and offering education to new members. Angel syndicate and group leaders, as well as their members, have told us that these operational expenses are a major hurdle.
If a group is dominated by investors contributing small cheques, it struggles to lead deals and provide substantial investment levels. This can make it harder to attract co-investment and results in lower success fees. To address these challenges, supportive infrastructure is needed to help alleviate operational costs, allowing these groups to grow and strengthen, while also helping them democratise angel investing with low entry points.
Educational support is another hallmark of these groups. Workshops, mentoring, and hands-on training sessions demystify the complexities of investing. As one participant from Newcastle explained: “When I first learned about angel investing, I thought it was only for people with millions in the bank. Joining a group showed me it’s not about being wealthy – it’s about being informed.” Another roundtable attendee said that “understanding the mechanics of investing demystified the process and allowed them to participate confidently.”
For many women, syndicates offer not just financial opportunities but also a sense of community and shared purpose. Collaborative decision-making, providing members with detailed due diligence and fostering discussions about the potential of each deal were cited as key. As one member reflected, “I never felt confident asking tough questions before, but being part of this group has given me the knowledge and the confidence to engage fully in the process.”
The impact of syndicates extends beyond simply increasing the number of female investors. They are also changing the way investments are made. Female investors often bring different perspectives to the table, which can result in more holistic evaluations of potential deals. One Newcastle roundtable participant explained how “women ask questions that others might overlook: about ethics, sustainability, and team dynamics. It’s not just about the numbers.”
Women-led angel syndicates and groups, and those adhering to the Invest in Women code, are actively prioritising diverse-led businesses. A participant at our London roundtable described this as a pivotal shift: “For the first time, I saw women on both sides of the table – investors and founders. It felt like the ecosystem was finally starting to reflect the world we live in.” This comment highlights the positive impact of increased diversity in the investment ecosystem, while also showing the ongoing need for more angel syndicates and groups to embrace this approach.
Regional challenges and the power of local networks
While syndicates are thriving in certain regions, the picture is not uniform.
Northern Ireland, for example, has a well-established angel ecosystem, supported by Invest NI and the British Business Bank, including an angel co-investment fund that has been operating for several years. But the region has been slower to develop a female angel investment ecosystem. A Belfast roundtable participant highlighted the lack of visibility for female investors: “Until recently, I had never even heard of women investing in startups. It was always something men did.” We found that this sentiment was not uncommon. A significant game-changer in this space is AwakenAngels, which has built a syndicate of nearly 80 women investors in Northern Ireland, demonstrating substantial progress in engaging women in angel investing.
In Wales, Women Angels of Wales is addressing this challenge by creating a dedicated space for women to connect and learn and has built a community of over 40 women focused on investing in women led businesses in Wales. One person who spearheaded the group’s formation noted: “We realised that women wanted to invest but needed a space where they could feel comfortable asking questions and building confidence.” The syndicate has successfully fostered a culture of peer learning and mutual support, which has encouraged more women to participate.
Nonetheless, regional disparities persist. One Birmingham-based investor confessed, “if I want to access serious investment opportunities, I still have to travel to London. It feels like we’re always playing catch-up here.” This reliance on centralised hubs highlights the need for sustained investment in regional syndicates to ensure that opportunities are truly accessible.
Deal flow continues to be a major issue in underserved regions. Multiple angel investors from the regions have highlighted the difficulty of finding quality opportunities locally. One of them said: “It’s not that women don’t want to invest, it’s that the deals aren’t here. We need to build a stronger pipeline.”
Another point that was frequently raised is the perception of risk. Multiple roundtable participants mentioned that while women are not inherently more risk-averse, they are often more risk-aware. As one Newcastle-based investor explained: “It’s not about being afraid to invest, it’s about making sure we’re investing in something meaningful and sustainable.” Syndicates and angel groups play a crucial role in addressing this by providing detailed due diligence and fostering collaborative discussions.
To address some of these challenges the British Business Bank launched an Angel Syndicate pilot programme in April 2023 to enhance capacity and participation in angel syndicates, focusing on female-led groups across the UK. Over 18 months to September 2024, the programme facilitated the recruitment of 137 new angel investors (133 female, including 100 novices), resulting in 18 deals worth £11.1 million, with £717,000 directly invested by syndicates [1]. Support included financial assistance for events, training, and operational infrastructure, alongside non-financial resources like best practice sharing sessions addressing key challenges such as syndicate sustainability and deal flow. This balanced approach has fostered confident novice investors, built diverse portfolios, and strengthened syndicate self-sufficiency.
Ultimately, syndicates are engines of cultural change and with support they can strengthen their impact. By lowering barriers, fostering education, and creating supportive communities, they are helping to build a more inclusive and dynamic investment landscape. The challenge now is to ensure that these benefits are felt across all regions.
Recommendation 3: Building on its Angel Syndicate pilot, the British Business Bank should allocate up to £1 million annually in grant funding to support development of emerging angel groups.
Angel groups can become viable once they reach a certain size and level of investment. But many angel groups, especially nascent ones including new women led angel groups and those in the regions, operate on limited resources, which can affect their ability to maintain membership, organise engagement and awareness raising initiatives, launch educational programmes, or conduct thorough due diligence. Our research has revealed that much of this work is being carried out on a voluntary basis. Support for operational expenses and technical assistance could help professionalise regional angel groups. This can incentivise more angel groups to form which, as our research suggests, has benefits for local ecosystems.
The British Business Bank’s Angel Syndicate pilot demonstrated that targeted financial support can be instrumental in the delivery of several interventions that strengthen capacity and capability of angel syndicates: events to raise awareness, developing training content for novice investors, and establishing operational infrastructure. The Bank should seek to build on this success and expand the pilot to a full programme.
Grants of £50,000 for emerging angel groups annually, supporting their growth for three years could be made available, with a view to the groups becoming financially viable within three years and being eligible to access the RAP co-investment funds. The eligible expenses will include establishing awareness, education and mentoring programmes for new investors, and early operations and infrastructure costs to establish strong linkages with the local ecosystem.
Recommendation 4: Establish the opportunity to facilitate deal sharing and co-investment between angel groups and early-stage investors through an existing platform or a new bespoke service
During this research, roundtable participants noted the lack of collaboration among angel groups located in different parts of the country. There is a need to enhance co-investment opportunities between regional investors. While existing platforms facilitate co-investment generally, they do not specifically target cross-regional investing. We therefore point at an opportunity to develop a platform that specifically encourages and supports co-investment among regional angel syndicates and groups.
Whilst recognising that there may be regional restrictions limiting the location of investable businesses, this approach would still create a more efficient way for angel groups to pool resources, share risks, share deals, leverage diverse expertise when evaluating investment opportunities, and attract co-investment across the regions.
This can lead to better outcomes for investors alongside larger cheques and enhanced support for startups. This should be supported by standardised co-investment protocols which would create guidelines for how syndicates from different regions can collaborate on deals, including due diligence sharing and investment terms.
By involving more angel groups in collaboration, including those with higher female representation, it could help build economies of scale, and lead to more investments in diverse founders. This approach would also leverage the strengths of different regions and angel groups to create a more balanced and effective angel investing ecosystem across the UK.
Education
Education remains one of the most critical yet unevenly distributed pillars of support for female angel investors. Across the UK, regional disparities in access to structured investment education perpetuate barriers for women aspiring to enter the field. Many regions outside of London and the South East lack the necessary infrastructure to provide consistent, high-quality, structured training for new investors.
At the Newcastle roundtable, one participant said: “When I first heard about angel investing, I thought it was something for people who lived in London or worked in finance. It felt entirely out of reach.” This sentiment was echoed across the regions.
Regional disparities are compounded by the lack of awareness campaigns tailored to women. In many underserved areas, potential investors remain unaware of the opportunities available to them. A participant in Birmingham explained: “I didn’t know there were programmes or networks for women investors until I stumbled upon an event completely by chance.”
Successful existing efforts
Despite the gaps, there are examples of successful education initiatives making significant strides in empowering women. One angel investor who benefitted from one such initiative described the approach as “holding your hand through the first few investments, then giving you the tools to go forward confidently.” According to many others who we heard from, this model has proven particularly effective in building a pipeline of new female investors in regions where angel networks are still emerging.
Alma Angels started in 2019, with 20 people in a room from very different backgrounds. Now it has grown into a community of 500, where 75% are women and 40% are ethnic minorities. More than a third have joined as first-time investors.
Alma Angels believe in a learning by doing approach. They give the community all the tools to get started as well as ongoing educational support. But the real strength of their community lies in new angels benefitting from the experience of established ones. They run workshops and programmes for corporates, such as banks, law firms, and tech firms, to train senior professionals to kickstart their angel investing journey and grow the ecosystem.
Alma DD is one such initiative. When an angel is looking to do due diligence on a startup, she can ask for the community to join. Alma organises a group due diligence session, where angels with relevant industry expertise or interest in similar startups collaborate. Participants share knowledge, provide feedback to the founder, and gain deeper insights collectively.
As a community, Alma Angels have invested in over 200 female (co-)founded ventures. Across at least 30 verticals, such as AI, impact, femtech, fintech, and climate, they see about 1,000 deals a year. At least 15 Almas are now raising their own fund or started a syndicate, while remaining in the community.
Lifted Ventures, co-founded by Jordan Dargue and Helen Oldham, is an early-stage investment network focused on increasing funding access for female founders outside of London. At its core, Lifted Ventures operates two angel investment networks, one built solely of women backing women, complemented by additional offerings in education, community building, and consultancy. In 2024, it supported female-led businesses to leverage investment of over £4.3 million.
Lifted Ventures offers angel investment education programmes that simplify early-stage investing. These programmes guide participants through a step-by-step process of identifying, evaluating, and investing in startups. They emphasise due diligence to build confidence in assessing opportunities and explain tax incentives to help maximise returns while managing risks. By equipping women with these essential tools, the programmes empower informed decisions and boost female participation in the investment ecosystem. These programmes have already been successfully run in Yorkshire and Newcastle, with new cohorts starting in Birmingham and Manchester in 2025.
The Black Angel Group (BAG) is a collective of black tech operators who invest in early-stage startups. It is also an example of how angel groups can both foster diversity and encourage female participation in angel investing. The collective, founded in 2021, was largely an effort to diversify the early-stage investment ecosystem by creating more diverse cheque writers, who are well-positioned to advise and guide emerging technology businesses. In 2023, BAG membership expanded beyond Google employees to welcome other operators from across the big tech ecosystem (including Amazon, Nvidia, Microsoft, Meta and Uber) who were keen to use their skills and expertise to nurture the next generation of talent. By fostering a supportive community and providing educational resources, BAG has empowered black investors to actively participate in the venture capital ecosystem.
BAG’s impact is evident in its diverse portfolio, which includes startups founded by individuals from various backgrounds. By actively seeking out compelling founders and providing them with access to capital and mentorship, BAG is helping to level the playing field and create a more inclusive investment landscape. Additionally, BAG’s educational initiatives, such as workshops and webinars, have equipped aspiring angel investors with the knowledge and skills needed to make informed investment decisions. As a result, BAG has seen a growing number of women join its ranks, contributing to a more gender-diverse angel investing community.
With more than a third (35%) of the collective identifying as female, and more than 75% participating in educational initiatives, the group’s ongoing efforts and commitment to these goals are clear. By highlighting the success stories of BAG and similar organisations, we can hopefully inspire more individuals to embrace angel investing and contribute to a more equitable and inclusive future for entrepreneurship.
Collaborative learning environments
One of the most effective methods of education is peer learning, which fosters collaboration and knowledge-sharing among participants. In regions where formal educational opportunities are limited, peer networks have filled an important void, creating spaces where women can learn together and from each other.
At the Newcastle roundtable, participants highlighted the importance of these networks: “Being in a room with other women who’ve done this before makes all the difference. You see that it’s possible, and you learn from their experiences.” Collaborative environments reduce the intimidation often associated with entering a male-dominated field, replacing it with mutual encouragement and shared growth.
Regional collaborations further enhance these learning opportunities. In Scotland, syndicates such as Archangels and Mint Ventures work closely with local universities and business hubs to deliver tailored education programmes. This approach ensures that resources are not only accessible but also relevant to the unique challenges of each region. A participant in Edinburgh said: “The collaboration between the syndicates and local institutions has created a network that supports you at every stage.”
Digital platforms are also emerging as powerful tools for collaboration and education. Initiatives like Lifted Ventures’ online dashboards provide real-time access to educational resources and investment opportunities, enabling women from across the UK to participate regardless of location. These platforms complement in-person events, creating a hybrid model that blends accessibility with community-building.
Recommendation 5: Develop a centralised platform with comprehensive beginner-to-advanced angel investor education resources, and enabling access to existing Angel educational programmes and materials.
Our research has shown that comprehensive training programmes can build confidence among new investors while enhancing the skills of seasoned angels. A structured approach can build a more knowledgeable investor base. Even though some angel groups and syndicates offer educational support to their members, that information is dispersed and not often easily accessible. To address this need efficiently and effectively, we recommend the creation of a centralised, shared educational platform.
The recommended key features of the platform:
Comprehensive content: it should offer a range of educational resources from beginner to advanced levels, covering topics such as the mechanics of angel investing, tax benefits (such as SEIS/EIS), due diligence, risk management, portfolio management, and supporting scale-ups.
Diverse resource pool: it should leverage existing high-quality educational materials developed by established angel groups, UKBAA, and other key players in the ecosystem. This approach would create economies of scale and avoid duplication of efforts.
Accessibility: the platform could implement a hybrid approach combining online modules, webinars, and resources for in-person workshops to ensure accessibility across diverse regional contexts.
Customisation options: it could allow for white-labeling of resources, enabling regional angel groups to tailor the content to their specific needs while maintaining cost-efficiency.
Peer learning and networking: it could incorporate features that facilitate peer learning networks, mentoring sessions, and virtual networking events.
Implementation:
The British Business Bank could lead the development and maintenance of this platform, similar to its Finance Hub.
Funding could be sourced through a combination of government support, contributions from participating organisations, and potentially a small user fee for accessing some content and features.
Regularly update the platform with new resources and adapt to emerging trends in angel investing.
This centralised approach would provide a cost-effective solution for angel groups and individual investors across the UK, ensuring access to high-quality educational resources while allowing for regional customisation where needed.
conclusion
This report highlights the critical role of angel investors in shaping the UK’s entrepreneurial present and future. But despite a thriving investment ecosystem in London and the South East, the potential of underserved regions and female investors there remains largely unrealised.
Female angel investors are uniquely positioned to drive meaningful change, prioritising local and social impact and supporting diverse founders. However, systemic barriers continue to stifle progress. Strengthening regional syndicates with operational funding, expanding education tailored to women, and lowering entry barriers can unlock that untapped capital.
Taken together, the actions for the Government and angel groups proposed in this report can better support angel investors across the entire country. By prioritising inclusivity and regional development, the UK can create a vibrant ecosystem where innovation thrives everywhere, not just in established hubs.
Acknowledgements
Central to this research were all the angel investors, leaders of angel groups and syndicates, and other individuals and organisations who contributed to our roundtables, call for evidence, and individual conversations. We thank them all for their time, and insights. Any errors of fact or judgement are those of the author’s alone.
Alex Lusty – Gatekeeper, Gabriel Investments
Alexander McLeod – Relationship Manager, Minerva Business Angel Network
Andrea Nicol – Management Consultant and Advisor, The Talent Director / Angel Investor
Anika Henry – Programme Manager, Investment Royal Academy of Engineering / Angel Investing School / Black Angel Group
Ayesha Ofori – Founder & CEO, Propelle
Beth Crosier – Investor and NED
Carol Hall – Investment Manager, Development Bank of Wales
Charlotte Scott – Senior Investor Relations Manager, Innovation SuperNetwork/UMi - Northern Investor Hub
Clare McGee – Co-Founder & Chief Executive Officer, Awaken Angels
Dama Sathianathan – Partner, Bethnal Green Ventures
Dana Drzikova – Founder and Director, Purple Light Midlife
David Woods – Senior Manager, UK Network (London), British Business Bank
Elaine Ferguson – CFO, Enough
Erika Brodnock – CEO, Kinhub
Hana Hussain – Advisor, Transform VC
Hannah Brynn – Managing Director, Anglia Capital Group
Jane Galsworthy – Managing Director, Oxford Innovation Advice
Jenny Tooth OBE – Executive Chair, UK Business Angels Association
Jess Jeetley – Founder and CEO, Bot Theory
Joanne Clough – Director, Social Sustainability, Lloyds Banking Group
Jordan Dargue – Co-Founder, Lifted Ventures
Lindiwe Gararirimo - Venture Scout, Ada Ventures
Liza Sutherland – Founder, Tillir; Head of Ecosystem, Techstart Ventures LLP
Louise Tait – Angel Investor
Luke Willetts – Deputy CEO, Worcestershire Local Enterprise Partnership
Marie Labus – CEO, AMLo BIOSCIENCES LIMITED
Marla Shapiro – CEO, HERmesa Angel Syndicate
Martin McTague – National Chair, Federation of Small Businesses
Michael McDowell – Co-Founder, Raise Ventures; Ireland Country Manager, SeedLegals
Michaela Kendall – Co-Founder and CEO, Adelan Limited
Michelle Lestas – CEO & Founder of the MENTupLEADup
Michiel Smith – Gatekeeper, Apollo Informal Investment
Monica Langa – Director, Fletcher Jones Ltd
Nichola Bates – Ventures & Innovation Lead at Boeing Global, Managing Partner at Aerospace Xelerated
Niki McKenzie – Joint Managing Director, Archangel Investors Ltd
Rachel Jones – Founder, SnapDragon Monitoring Ltd
Rebecca Macdermid – Investment Manager, Maven Capital Partners UK LLP
Roderick Beer – Managing Director, UK Business Angels Association
Roxane Sanguinetti – Founding Partner, Alma Angels
Sarah Bingham – Events Manager, Minerva Business Angel Network
Shaun Fooy – Senior Manager, UK Network (North East & Tees Valley), British Business Bank
Shkun Chadda – Life Sciences Investor, Chadda Family Offices
Sonia Powar – Venture Partner, Anthemis
Sophia Lan – CEO, WInvest Collective
Susan Nightingale – Director, Devolved Nations UK Network, British Business Bank
Tara Attfield-Tomes – Founder and Managing Director, EAST VILLAGE.; Founder, The 51% Club; Co-Chair (Birmingham Board), The Lifted Project
Tracy Sherratt – UK Network Senior Manager (West Midlands), British Business Bank
Verity Batchelder – Founder / NED / Angel investor, Good Life Sorted
Yvonne Greeves – Director of Women in Business, NatWest Group
[1] British Business Bank MI data, October 2024. Publication forthcoming.