The women backing women fund has reached a £130 million first close, marking a major step toward reshaping how venture capital flows across the UK.
Led by Bootstrap4F, the fund of funds brings together backing from Barclays, Nationwide, the British Business Bank and M&G. As a result, it combines both public and private capital to support female-led and mixed-gender investment managers at scale.
Importantly, the initiative aims to address long-standing funding imbalances. Therefore, it focuses on changing who controls capital allocation, not just who receives it.
Women Backing Women Fund Targets Investment Gap
The women backing women fund directly responds to a significant imbalance in venture capital. In 2025, fully female-founded teams received just 1.75% of £18 billion in UK equity investment.
Because of this, the fund takes a systems-level approach. Instead of investing directly into startups, it backs fund managers who prioritise gender diversity. Consequently, this creates a ripple effect that increases funding for female founders over time.
The fund is led by Fatou Diagne and Stéphanie Heller of Bootstrap Europe, alongside Matthias Ummenhofer of Mojo Capital. Together, the team brings a £4.4 billion track record in fund selection. Therefore, the initiative combines diversity goals with strong commercial expertise.
Institutional Backing Signals Market Shift
The £130 million first close highlights growing institutional support for inclusive investment strategies. Barclays, Nationwide, the British Business Bank and M&G have all committed capital to the fund.
In addition, the initiative forms part of the government-backed Invest in Women Taskforce. This wider programme has secured £635 million in commitments, with more than £70 million already deployed.
Because of this scale, the fund represents more than a niche initiative. Instead, it signals a broader shift in how investors approach diversity and performance.
This trend aligns with wider efforts to improve access to capital across the UK. For example, new investment platforms are expanding funding pathways for startups, as highlighted in our coverage of UK Angel Investment Fund Boosts Startup Growth. Together, these developments aim to create a more inclusive and effective investment ecosystem.
Driving Long-Term Change in Venture Capital
The women backing women fund aims to reach a £250 million final close. Once deployed, it will invest in fund managers that meet strict criteria for both diversity and financial returns.
Importantly, the model challenges the idea that inclusive investment is separate from performance. Instead, it positions diverse teams as a driver of stronger outcomes.
Debbie Wosskow, Co-Chair of the Invest in Women Taskforce, said the initiative was designed to address structural barriers in venture capital. Therefore, the focus remains on delivering both impact and returns.
A New Model for Inclusive Investment
Overall, the women backing women fund represents a strategic shift in the UK’s venture capital landscape. By targeting the decision-makers behind investment, the model aims to unlock broader access to funding.
As competition for innovation intensifies, ensuring diverse founders can access capital will become increasingly important. Therefore, initiatives like this could play a key role in shaping the future of UK entrepreneurship.
