Women investing in early-stage unlisted companies, known as angel investing, at the same rate as men would see the status quo disrupted significantly. Creating a much more inclusive and diverse investment ecosystem, we would see more balanced investment across traditionally underfunded sectors. These sectors include food and drink, retail, creative industries and perhaps most crucially, women’s health and wellbeing. Women-led companies which address critical yet long overlooked issues, such as hormone health, menstruation, menopause, and pregnancy, would receive funding to thrive at the critical early stages.

Traditionally these underfunded sectors include more women-led start-ups, perhaps because they are intrinsically linked to the woman’s role as primary household budgeter, with 80% responsible for household budgeting. At Mint Ventures, we have found this unique perspective has given way to purpose-led investing, often characterised by Environmental, Social and Governance (ESG) criteria, more prevalent among women investors. Women are more likely to invest in companies that align with their visions of a better world, focusing on socio-economic returns alongside financial gain. This has been shown to demonstrate better investment decisions.

Historically, no thanks to engrained gender biases, the investment sector has been male dominated, with women notably underrepresented. Incredibly, even now women represent just 14% of UK angel investors. This in turn has a detrimental impact on women-led start-ups. The Young Company Finance’s latest Diversity Data Report 2018-2023 shows, at best, women-led businesses receive 2.6p for every £1 equity invested in Scottish businesses.

Despite this situation, women currently own around 40% of Scotland’s wealth, so the opportunity for investment and business growth for women-led start-ups is considerable. However, the networks to support the transition from creator or holder to investor are simply not as established for women as they are for men.

There is enormous potential for women to become angel investors, but unfortunately women face a number of barriers which include historical cultural, educational, and financial wellness issues, as well as the use of complex investment language and jargon which can be difficult to relate to. Simplifying how we talk about investment increases the accessibility to women to either start their own business, raise investment, or think about personally investing themselves.

Awareness and education play a crucial role in bridging the gender investment gap, by helping women to understand that they too can become an angel investor. At Mint Ventures we are seeking to address this by supporting women to become accredited angels through our six-month online training program. This equips women with all the knowledge and tools needed to make effective investment decisions. A huge misconception is that you need to be wealthy to invest in these early-stage unlisted companies. We make this more accessible by starting at £2,000 per deal.

Many women are unaware of the significant tax benefits available through angel investing. In fact, research from the Enterprise Investment Scheme Association (EISA) indicates that only 10% of women know about these tax advantages. They enable a UK taxpayer to claim back between 30% and 50% of an investment made.

The more we talk about the challenges and work in collaboration with professional advisors, together we can take steps to achieving a more inclusive and diverse investment ecosystem, championing businesses addressing issues specific to women which have been disregarded for far too long.

Gillian Fleming is co-founder and CEO of Mint Ventures