EISA’s new report, in partnership with Beauhurst, looks into the impact of the Enterprise Investment Scheme on the UK economy over the last 30 years. The report was released on the 18th of September 2024 for the 30th Anniversary of the EIS conference. IFA Magazine is taking a look into the reports main sections, such as a pivotal focus point which highlights the achievements of women in EIS, and the groundbreaking impact that women have in driving economic growth.
According to the report, today, more than 14.0k high-growth enterprises are led by women, reflecting a steady rise in female ventures. Investment in EIS-backed companies with at least one female founder has shown consistent growth over the years, reaching a notable peak between 2021 (£1.51b) and 2022 (£1.52b). In 2023, 25.0% of EIS-backed deals were secured by companies with at least one female founder. These findings align with the broader high-growth ecosystem, where 2021 and 2022 were record years for investment in many high-growth industries.
The surge in investment can be largely attributed to the role of government stimulus measures. These measures were designed to incentivise investment during the COVID-19 pandemic and stimulate economic recovery. As a result, investment activity accelerated, leading to a spike in equity investment across high-growth industries.
n addition, significant fundraisings by EIS-backed companies contributed massively to the spike in investment. The top 10 deals by enterprises with a female founder in 2022 all exceeded £17.0m. Among these, battery technology developer Nyobolt secured the largest investment, raising a £50.0m funding round in July 2022. IQ Capital Fund and German-based H.C. Stark backed this fundraising round. Although the cleantech company raised the largest individual fundraising within this cohort, it only accounted for 3.29% of total investment in EIS-backed companies with a female founder.
The broader impact of female founders is reflected by the significant increase in fundraising deals completed over
the decade. EIS-backed companies with a female founder participated in over 1,200 fundraising deals in 2022, up from just 265 deals in 2014. This rise is representative of the impact and influence of female-founded companies in the UK’s startup ecosystem.
To read the full report in its entirety, please see here
