The UK government just did something big.
On October 21, 2025, the Women and Equalities Committee published a report with 26 recommendations to fix how female entrepreneurs get funded.
The headline? They want 30% of Innovate UK funding ringfenced for women. Plus, a brand new tax break scheme that goes up to £2M.
This could change everything. Here's what you need to know. →
What Actually Happened
The committee called the Autumn Budget "a prime opportunity to unlock the full potential of female entrepreneurs."
Translation: They're tired of waiting for things to change on their own. Now they're demanding government action.
Here are the three big changes:
1. Female Enterprise Investment Scheme (FEIS)
This is a new tax relief program for investors who back female founders.
Think of it like the Seed Enterprise Investment Scheme (SEIS), but specifically designed to incentivize people to invest in women-led businesses—up to £2M.
Status: Recommended for the Autumn Budget. Not official yet, but it's on the table.
Why it matters: Right now, investors get tax breaks for backing startups in general. This would give them extra incentive to back women. That means more money flowing to female founders.
2. Innovate UK Reforms
Innovate UK is the government's innovation agency. They give out grants and funding to help businesses grow.
Here's what they're changing:
30% of funding ringfenced for female entrepreneurs
Gender-balanced assessment panels (so it's not just men deciding who gets money)
Removal of discriminatory match-funding requirements (some programs required you to already have funding to get funding—which kept women out)
Status: In progress. Innovate UK published their "10 Commitments to Women Innovators" in April 2025, and they're rolling out changes now.
Why it matters: This isn't just talk. They're actually restructuring how funding decisions get made.
3. British Business Bank Mandate
The British Business Bank is being told to make sure 30% of their finance supports female-led businesses.
And here's the big one: they want to increase equity finance for women from 2% to 10% by 2030.
Why it matters: Right now, women get 2.3% of VC funding. This mandate forces one of the UK's biggest sources of capital to change that.
Why This Actually Matters
The Rose Review found that if female entrepreneurs were funded equally, it would unlock £310 billion in economic growth for the UK.
Here's where we are right now:
Female founders get 2.3% of VC funding (that's £6.7B out of £289B total)
In AI specifically, men get £5.3M average deals. Women get £800K.
97.7% of funding goes to men.
The committee's conclusion? "Voluntary initiatives have failed. Government action is needed."
They're not wrong.
How to Access This Right Now
Innovate UK Women in Innovation Awards 2025/26
£75K grants (50 awards available)
Applications expected to open early 2026
Current Open Opportunities
The Stuff People Are Arguing About
Not everyone thinks this goes far enough.
MPs and advocacy groups are calling out the Invest in Women Fund (£250M target) for delays and not delivering on promises.
The committee is also pushing for:
10% public procurement target for female-led businesses by the end of Parliament (meaning the government would buy 10% of its services from women-owned companies)
Removal of age limits on EIS (currently, your business has to be less than 7 years old to qualify—doesn't reflect the reality that women often start businesses later)
Maternity allowance increases and making childcare tax-deductible for self-employed women
What You Should Do This Week
1. Bookmark the opportunities page Innovate UK Funding Portal
2. Sign up for the Women in Innovation mailing list So you know the second applications open.
3. If you're raising now, mention these reforms in investor conversations It shows you're informed, strategic, and paying attention to policy shifts that could impact your business.
What You Should Do This Week
1. Bookmark the opportunities page Innovate UK Funding Portal
2. Sign up for the Women in Innovation mailing list So you know the second applications open.
3. If you're raising now, mention these reforms in investor conversations It shows you're informed, strategic, and paying attention to policy shifts that could impact your business.
The Bottom Line
This is the biggest policy shift for female founder funding in years.
Will it solve everything? No. But it's a start. And it's happening because people pushed for it.
Your job now is to stay informed, apply when opportunities open, and use these reforms as leverage in your fundraising conversations.
If you need help figuring out which programs you qualify for or how to position your business for these new funding streams, reply to this email. I'll walk you through it.
That's it for this week. This is your year. Let's make it count.
See you next week,
