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As part of our partnership with Scale and the Women Who Scale initiative, City AM sat down with Sam Smith, the former chief executive of FinnCap, to discuss one of the key challenges holding back female start-up founders and what can be done to help female-led scaleups.
Whereas the spotlight often shines on the funding gap facing female founders, a shift in focus is underway.
Beyond Funding: The Scale-Up Challenge
Sam Smith, formerly of FinnCap (now Cavendish Financial), contends that the most significant hurdle for women-led businesses isn’t initial funding, but rather scaling operations *after* launch. Over 24 years of advising growth firms, Smith observed a limited number of women building companies reaching substantial growth stages.
This observation led to the launch of The Superscalers, a non-profit supporting women building companies with revenues exceeding £50m. Smith believes this £50m revenue mark is pivotal for influence, and recognition. In 2024, The Superscalers identified just 80 women in the UK at this scale; a year later, that number rose to 144.
The Rising Tide of Female-Founded Revenue
The trend indicates progress. In 2019, under 200 UK companies founded by women reached £10m in revenue. Last year, that figure climbed to approximately 1,300, signaling more women-led firms are entering the scale-up phase.
Smith notes that reaching £20m in turnover makes doubling to £40m or £50m more attainable, with hundreds of women-led companies poised for rapid growth.
The Role of Alternative Capital
Despite this growth, female founders still face challenges securing venture capital. Smith points out that traditional VC structures may not align with how many women build businesses, often prioritizing sustainable growth and company culture over rapid exits.
This often leads female founders to rely on bootstrapping or “patient capital” before seeking larger funding rounds. Alternative funding sources, like angel investors, could become increasingly critical.
The Power of Networks and Belief
However, Smith emphasizes that access to networks and self-belief remain significant barriers. She reflects that it took her over 20 years to feel she “deserved” a seat at the table, a sentiment echoed by many women from non-traditional backgrounds.
A Growing Ecosystem and Economic Impact
Initiatives like Women Who Scale, culminating in the Scale Expo & Summit in London, aim to connect female founders with investors. The Rose Review estimates that closing the gap between male and female business creation and scaling could add £310 billion to the UK economy.
Smith’s goal is to witness at least 500 female-founded businesses surpass the £50m revenue threshold, creating a critical mass of economic power and driving systemic change.
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