Crunchbase Data analysed by Think Business Loans, a commercial finance brokerage, revealed that women-founded startups receive just 12.8% of total funding in the UK. While on average per round of funding, men receive 45% more (£2,603,140) than women (£1,796,296).
In 2019, the number of female entrepreneurs rose to 40%, with the number of successful businesses run by women increasing year on year. But despite their overwhelming success in the field, a poll taken by the Telegraph reveals that two thirds of British Female business owners say they are still not taken seriously by investors.
Disrupting the finance industry
Jamie Stewart, CEO at Think Business Loans, described the banking system as “ripe for disruption” “The banks are under serving SME businesses, especially female-led companies. 85% of our clients have either been turned down for a loan or in most cases could not even arrange a meeting with their corporate account manager.” The brokerage aims to encourage more women to obtain the finance they need to help them succeed in the business world, through their innovative matching technology. iFunds works with businesses in mind, helping UK SME’s search and compare lenders in just three minutes. Author of the technology and head of product, Leekim Chang tells The Fintech Times “our technology has helped fund many female-led businesses, once turned away by the banks, who have gone on to grow exponentially over the next few years”. Chang explains iFunds “simplifies hundreds of variables with a 90% accuracy rate”, with the hopes that combining technology with the stagnating industry will help close the gender gap and assist women in getting the funding they need.
Working across the market
Think Business Loan works with a range of high street lenders, including Barclays, Lloyds, RBS and Santander as well as challengers such as Atom Bank and Metro Bank. But what defines them is their combination of human voice and technology. “The lack of human interaction” offered by banks “might help speed up their process, but it is not easier for most customers who need an expert human touch for this service” Providing a 24-hour turnaround for commercial funding, the credit broker is trying to assist female entrepreneurs who require quicker access to funding. Think’s iFund’s technology can now retrieve bank statements “within a minute” and offer instant rates from commercial lenders.
Jessica Court graduated from the University of Portsmouth in 2017 with a bachelor’s degree in Media Studies. She has previously worked within the In... Explore Author