Women-powered businesses achieve record exits but barriers remain

Women-powered businesses are delivering record exits, expanding their influence in venture capital and key sectors but funding headwinds remain

By Suzanne Elliott

ME+EM store front in Madison Avenue — Clothes store, ME+EM are a women-powered success story / Imagge: ME+EM

Female-led businesses are a ‘driving force’ that continue to close the gap on their male counterparts, delivering record-breaking exits and the highest number of deals in five years, J.P. Morgan’s women in business power list has revealed.

Firms led by women delivered £5.23 billion in exits in 2024, nearly matching the £6.74 billion achieved by male-led firms, the report found.

Women-led SaaS companies completed 44 exits in 2024, representing 21.7 per cent of sector exits compared with just 6.8 per cent a decade earlier.

Marice Brown, region head for the UK, Channel Islands and Ireland, said women-powered businesses as a ‘driving force behind innovation and growth’.

The gains made by women-powered companies in the last half-decade signal the increasing maturity and scale of women-founded, led, owned or managed companies. But those behind the report warned that challenges in funding and networks remain.

Charlotte Bobroff, of J.P. Morgan Private Bank, and Spear’s UHNW Wealth Manager of the Year 2023, said that ‘although the gap still exists, the rising exit value among women-powered businesses is notable,’ particularly given their smaller share of the high-growth business population.

Empowering women entrepreneurs is one particular focus for Bobroff. She spearheads the private bank’s UK Women & Wealth initiative, overseeing the annual report on the top 200 UK businesses powered by women, which ‘shines a light on the success’ that women entrepreneurs are having in the UK business community.

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The report, now in its fifth year, identifies areas where women are excelling as well as highlighting bigger challenges, equipping female entrepreneurs with insights that ‘everyone can benefit and learn from it’.

Women-powered businesses are defined in the report as high-growth companies founded, led, or majority-owned by women, or those with management teams comprised of at least 50 per cent women.

What is behind the rise in exit values?

Even excluding £5.31 billion exit of Darktrace, the British cybersecurity firm co-founded by Poppy Gustafsson in 2013 with the Autonomy founder Mike Lynch, in September 2024, exit values still surpass prior years, Bobroff told Spears.

‘Part of this is improving market conditions after 2022-2023 challenges,’ she added.

‘There’s also been more women in SaaS and digital-enabled businesses, which have matured and reached a stage to achieve strong exit values. Another factor is realistic expectations; many women-powered businesses have raised more conservatively, avoiding inflated valuations, which facilitates exits.’

Challenges remain

While the improvements reflected in the report are to be welcomed, Bobroff acknowledged that there are still barriers, both institutional and structural.

‘Fewer women in investor roles is an institutional dynamic. Historically, women have been concentrated in consumer businesses, attracting fewer VC (venture capital) or private equity investors. But there’s been progress: more women in VC, broader sectors for women-powered businesses and better education around fundraising.

She adds: ‘Initiatives like our report, Buy Women, and Invest in Women hubs help close the knowledge gap. Role modelling also plays a big part, seeing other businesses succeed inspires founders and provides benchmarks.’

Lingering stereotypes

Women’s perceived lack of ambition is a stereotype that holds back female entrepreneurs and one Bobroff would like to see banished.

‘Financial literacy is key; women should be confident discussing wealth, aiming to sell their business, and managing money. Men often communicate ambition more openly, which can affect perceptions and negotiations.’

But she suggests that the shift to a more risk-conscious investment climate may benefit female founders who have pushed harder for their success.

‘Resilience is key,’ Bobroff says.

She suggests that the shift to a more risk-conscious investment climate may benefit female founders’ typically transparent approach to risk

‘In today’s cautious economic environment, women may have an advantage due to a transparent view of risk, Bobroff said.

‘Women hold a larger stake in their businesses because they often raise capital later, focusing on profitability first. This gives them a stronger position when fundraising, as they can demonstrate a track record of profitability and spend capital wisely to drive growth.

‘Women-powered businesses that scale without early external capital, through bootstrapping or profitability, are well-positioned for future investment or exits. This built-in resilience strengthens their trajectory in the market.’

Top 10 Women-Powered Businesses (2025):