The “Women Backing Women” fund, which is backed by the UK government, has announced that it has reached the first close of £130 million of its £250 million goal.

Bootstrap4F, which is managing the fund of funds, said it received investment from Barclays, the British Business Bank, M&G and Nationwide.

Stephanie Heller, managing director at Bootstrap4F, said: “Securing £130m in commitments with Barclays, the British Business Bank, M&G plc and Nationwide is an exceptional outcome in this market.” We have built the infrastructure to deploy capital efficiently, and the funds that have expressed interest so far are both strong and high in quality. We are committed to making every investment count.”

In a recent report by the Women and Equalities Committee about female entrepreneurship, it was found only two per cent of venture capital investment went to female founders. All-male teams got 80% of the funding available.

The “Women Backing Women” fund is a key part of the UK government-backed Women Taskforce, aimed at addressing the long-standing challenge of women struggling to secure investment capital. The fund is thought to be the largest dedicated FOF in the world and is the first female-led initiative of its kind, focused on deploying capital into female-founded businesses and mixed investment teams in the UK.

Minister for Investment Lord Stockwood said: “The UK is a thriving business hub, and this £130m investment into the Women Backing Women fund is a major moment in showcasing the power of government and industry in coming together to make a positive difference in our investment environment.”

“Through the Invest in Women Taskforce, we are creating further opportunities for female founders and encouraging more women to become investors to make a real difference in the sector and in our country.”