£130 Million Close Marks a Milestone for Female-Led Investment Teams in the UK
Updated: Oct 7
The UK investment landscape has taken a significant step toward gender diversity with the recent first close of £130 million for Bootstrap4F’s Women Backing Women fund of funds. This fund, backed by four major institutions, aims to support female-led investment teams, addressing a critical gap in the venture capital ecosystem. The move signals a fresh approach to improving funding for female founders by focusing on the fund managers who decide where capital flows.
Tackling the Root of Gender Disparity in Investment
In 2025, female-founded teams in the UK received only 1.75% of the £18 billion equity investment. This figure has remained stubbornly low for over a decade, highlighting a systemic issue in how investment decisions are made. The Women Backing Women fund targets this problem by investing in venture fund managers who are female or part of mixed-gender teams. The idea is simple: diverse investment committees are more likely to fund a broader range of founders, including women.
By focusing on fund managers rather than directly on female founders, the fund addresses the structural barriers that have limited female-led ventures from receiving adequate capital. This approach aligns with the UK government’s Invest in Women Taskforce strategy, which aims to create lasting change in the investment ecosystem.
Strong Institutional Support and Ambitious Goals
The fund’s first close attracted commitments from Barclays, the British Business Bank, M&G, and Nationwide, four well-established institutions with a shared interest in promoting gender diversity. Bootstrap4F, selected from over 25 applicants to manage the fund, brings a proven track record with £4.4 billion in fund selection experience.
The fund aims for a final close of £250 million, which will enable it to back a wide range of venture fund managers who meet both gender diversity and commercial return criteria. This milestone is part of a larger £635 million commitment pool by the Invest in Women Taskforce, with over £70 million already deployed by partners such as BGF, Aviva, and Morgan Stanley.
Overcoming Challenges to Build Momentum
While the fund’s launch is a positive development, it has faced some challenges. Reports indicate that two founding partners left Bootstrap4F ahead of the close, and some fund managers expressed concerns about communication and shifting timelines during the fundraising process. Despite these hurdles, the fund’s successful first close demonstrates strong institutional confidence and a shared commitment to advancing female-led investment teams.
What This Means for the Future
The Women Backing Women fund represents a clear step forward in addressing gender imbalance in UK venture capital. By channelling capital through female and mixed-gender fund managers, the fund aims to create a more inclusive investment environment that benefits a wider range of entrepreneurs.
This approach could serve as a model for other markets looking to increase diversity in investment decisions. The fund’s progress will be closely watched as it begins deploying capital and supporting fund managers who can drive change.
How we got here
The fund of funds sits inside the Invest in Women Taskforce, co-chaired by Debbie Wosskow and Hannah Bernard and backed by HM Treasury and the Department for Business and Trade. Its stated aim is to make the UK the best place in the world to be a female entrepreneur.
The British Business Bank moved first. On 9 December 2025 it agreed, subject to final terms, a £30 million anchor commitment to the fund, on top of its existing £100 million commitment to the Taskforce. The fund then reached its £130 million first close on 31 March 2026, with Barclays, M&G and Nationwide alongside the Bank. Individual commitments from the other three investors were not disclosed.
What happened next
On 22 June 2026 the Taskforce announced the first three commitments from the fund. They went to Evertrue Capital I, a pre-seed fund founded by Yvonne Bajela, and to two Seedcamp vehicles: Seedcamp VII, a first-cheque seed fund co-led by Reshma Sohoni, and Seedcamp Nation II, which typically invests at Series B in existing Seedcamp companies. The size of each commitment was not disclosed.
Bootstrap4F expects to build a portfolio of 20 to 25 venture fund investments, and says more than 90 funds have expressed interest. The £250 million target remains, with no published date for a final close.
What it means for UK founders
Founders cannot apply to this fund directly. The capital reaches companies through the venture funds it backs, so the practical step is to track which managers receive commitments and approach them in the normal way. The first three span pre-seed, seed and Series B, which suggests the money will not be confined to the earliest stage.
For emerging fund managers, the criteria are public in outline: women-led or mixed-gender teams, UK operations and a credible case for commercial returns. A commitment from a British Business Bank backed vehicle can also help a first-time manager when approaching other limited partners.
Key facts at a glance
First close: £130 million on 31 March 2026, against a £250 million target.
Anchor investors: Barclays, British Business Bank (£30 million), M&G and Nationwide.
Manager: Bootstrap4F, chosen from more than 25 applicants.
First commitments: Evertrue Capital I, Seedcamp VII and Seedcamp Nation II, announced 22 June 2026.
Planned portfolio: 20 to 25 venture funds.
Wider pool: £635 million across the Invest in Women Taskforce, per Beauhurst data fully female-founded teams took 1.75% of UK equity investment in 2025.
Sources
Frequently asked questions
What is the Women Backing Women fund of funds?
It is a fund of funds managed by Bootstrap4F for the Invest in Women Taskforce. It invests in UK venture fund managers with women-led or mixed-gender teams that also meet commercial returns criteria.
Who invested in the £130 million first close?
Barclays, the British Business Bank, M&G and Nationwide. The British Business Bank committed £30 million. The other commitments were not disclosed.
Can female founders apply to the fund directly?
No. It backs venture funds, not companies. Founders reach the capital by raising from the funds it commits to, such as Evertrue Capital and Seedcamp.
How many funds will it back?
Bootstrap4F expects to build a portfolio of 20 to 25 venture fund investments. The first three were announced in June 2026.
Comments