The UK tech sector’s gender challenge

Starts ups are surging; but where are the women? asks Instant Offices

 

The UK tech sector is booming. In 2024 alone, a record-breaking 144,596 new tech companies launched—a staggering 52% year-on-year increase. But beneath this headline growth lies a persistent and troubling reality: women are still being left behind.

 

Despite an ambitious government goal to grow the number of female entrepreneurs by 600,000 by 2030 (GOV.UK), the share of women-founded businesses has plummeted across the UK’s ten largest cities. In Bristol and Leicester, the proportion of female-founded businesses dropped by more than half, with declines of 57% and 56% respectively. Even in London, the beating heart of UK tech, women represent just 9% of tech founders, despite nearly 52,000 new companies launching in the capital last year.

 

 

The numbers tell a stark story

While Glasgow leads with 11% of new tech businesses founded by women, the overall picture is clear across the UK’s major tech hotspots: female founders remain dramatically underrepresented.

Top UK Tech Hotspots	Total Tech Companies 2024	Total Tech Companies Founded by Women 2024	Percentage of Female Founders 2024
London	51,943	4601	9%
Manchester	3,235	286	9%
Birmingham	2,637	207	8%
Belfast	1,818	155	9%
Glasgow	1,639	174	11%

 

 

Why is this happening?

The gender gap in tech entrepreneurship isn’t new, but the decline in female founders is alarming—especially in a sector that prides itself on innovation and progress. So, what’s holding women back?

• Funding barriers: Female entrepreneurs receive just 2p for every £1 of equity investment in the UK—a figure that hasn’t budged in a decade.
• Gender bias: Persistent stereotypes and a lack of diversity among investors mean women are often overlooked or underestimated.
• Societal challenges: The gender pay gap, the “motherhood penalty,” and a lack of visible role models all add up, making it harder for women to start and scale businesses.
• Nostalgia and whimsy dominate retail: Across all retail categories, there’s been a return to nostalgia and whimsy, from Y2K revivals to Labubu Dolls. Yet, even as trends shift, the underlying barriers for women remain stubbornly in place.

 

The cost of inaction

When women are excluded from the tech ecosystem, we all lose. Companies with more than 30% female executives are more likely to outperform companies that don’t (McKinsey). Moreover, diverse teams are proven to drive better business outcomes, foster innovation, and build more resilient companies. The current decline of female founders threatens the diversity and resilience of the UK’s world-leading tech sector.

 

 

Bridging the gap: what needs to change?

Reversing this trend requires more than just ambition from women—it demands systemic change. Here’s how we can start:

• Expand access to capital: by supporting the growth of women-focused investment funds and increase diversity among those making funding decisions.
• Enhance mentorship and networking: by creating tailored mentorship and networking opportunities that can build confidence, provide guidance, and create vital business connections for female founders.
• Challenge stereotypes: by celebrating female entrepreneurs’ success and increase the visibility of women founders in media, education, and public life.
• Support working mothers: by developing policies that address the gender pay gap and provide practical support for balancing business and family life.

 

The bottom line

The UK tech sector is thriving, but true progress means ensuring everyone has a seat at the table. By breaking down barriers and supporting female founders, we can unlock the full potential of the UK’s tech ecosystem—and build a future that’s genuinely inclusive.

 

At Instant Offices, we believe that diversity isn’t just good for business—it’s essential. We need to work together to close the gender gap and create a tech sector where everyone can succeed. 

 

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Instant Offices is a global workspace solutions provider, helping businesses of all sizes find flexible office space in the world’s leading cities. See here for more information on our research into the growth of the UK Tech Sector.

 

Main image courtesy of iStockPhoto.com and Chinnapong