Unlocking potential: How the Northern Powerhouse Investment Fund II is driving investment into female founders in the North

The value that female-founded businesses add to the economy is no secret, and research has found that up to £250 billion of new value could be added to the UK economy if women started and scaled new businesses at the same rate as UK men. It’s also been shown that despite receiving significantly less funding than their male counterparts when seeking early-stage capital, businesses founded by women ultimately deliver higher revenue. Women also produce more than twice as much per pound invested, highlighting how women-owned companies can be better investments for financial backers.

Since the launch of NPIF II, we are dedicated to making sure more female-founders and leaders are able to access the investment they need to further their companies along their growth journeys. However, before we celebrate some of the female-founded businesses that secured the first NPIF II investments, it’s important to first reflect on the current landscape of investment opportunities for male- and female-founded businesses in the UK.

Narrowing the gender investment gap

According to the British Business Bank’s Small Business Equity Tracker 2024, all-female founder teams raised 162 deals worth £232m in 2023. While this is a positive figure, all-male founder teams raised 1,413 deals worth £6.5bn during the same time frame, highlighting the disparity in funding to female founders.

The recent Small Business Equity Tracker also found that all-female founder teams raised 8.2% of deals in 2023. This represented a slight decrease from 8.9% in 2022 and, in terms of improvement over the past decade, only one percentage point higher than in 2014. The Small Business Equity Tracker did find, however, that companies with at least one female founder raised 20.8% of the total funding in 2023, 8 percentage points higher than in 2014, and six percentage points more than in 2022. This shows that progress has been made over the last ten years, and the opportunities for us to continue to make real improvements.

Female founders are the first to secure NPIF II funding

Since the launch of NPIF II, female-founded businesses have led on securing the Fund’s first deals. One of these is Harrogate-based Kirsty’s, which secured £2m through NPIF II – Mercia Equity Finance. Launched by Kirsty Henshaw in 2009 after discovering that her son had multiple food allergies, she plans on using the investment to launch new ‘food-to-go’ ranges, with the aim of adding 15 new jobs to its 55-strong team in the next six months.

In the North West, Liverpool-based BioGrad raised a six-figure investment from NPIF II – FW Capital Debt Finance. Founded and led by Dr Natalie Kenny, the specialist laboratory education provider will use the investment to deliver its Skills Bootcamps, which offers free courses for adults to respond to skills shortages through flexible training.

Another female-founded business securing the first NPIF II backing is York-based Change Accountants. Launched in 2014 by Stacey McVeighty, its six-figure loan from NPIF II – Mercia Debt Finance will be used to strengthen its management team and invest in technology and training, following its acquisition of Sunley & Co, which saw the firm double in size.

These three businesses are great examples of the transformational power that access to finance can have for a business, and serve as an example to other female entrepreneurs of the potential the fund can offer. NPIF II is dedicated to unlocking the full potential of the North, and by investing in female-led businesses, the Fund helps create economic resilience and paves the way for a brighter, more inclusive future for the whole region. If you’re a female-founder looking for finance, get in touch here.