Women entrepreneurs are achieving 25 per cent lower valuations than their male peers when exiting their businesses, according to new research unveiled by Evelyn Partners at its No Diversity, No Deal event in Glasgow.
The preliminary findings, drawn from Evelyn Partners’ upcoming Next Exit report, reveal that male business owners secured an average of £5.2 million at exit compared to £3.9 million for female founders. The report will be published in full in October.
Business leaders, investors and advisers gathered at The Ivy on Buchanan Street to discuss the figures at the biannual event, hosted by Evelyn Partners alongside executive search firm Livingston James and supported by KPMG in Scotland.
Alison Fitzsimons, Head of Entrepreneurs Business Development at Evelyn Partners, said the valuation gap was “disappointing but not surprising.”
“This seems indicative of structural barriers, such as access to funding in order to scale, and negotiation bias when it comes to an exit. Securing funding is no easy task for all entrepreneurs, but especially for female founders. Less than 2% of venture capital funding, and only 3% of equity capital overall in the UK, goes to women-led businesses. These are headwinds that leave female entrepreneurs with lower returns from their hard graft in building businesses.”
The Next Exit study also shows that 65 per cent of female founders report high stress during the exit process, compared with 47 per cent of men, and that women are 15 per cent less likely to be satisfied post-sale.
“Undervalued all the way through”
Attendees at the Glasgow event said the challenges facing women entrepreneurs stretch far beyond the early funding stage.
Caroline Macgregor, founder of scale-up consultancy Up-Scale, said: “The challenges for female founders don’t stop at the funding gap. With data showing women achieve on average 25% less than men at exit, it’s clear they are undervalued all the way through their journey, including at the negotiating table. For Scotland, where our entrepreneurial ecosystem already suffers a sharp drop-off at the small-to-large scale-up stage, this compounds the challenge.”
Sophie Randles of Livingston James added: “There’s real power in creating a space like this — where business leaders and advisers come together not just to share insights, but to take ownership of driving meaningful change for women in business. The energy and support in the room never surprises me; it’s personal, it’s passionate, and it’s purposeful.”
No Diversity, No Deal was founded by Alison Fitzsimons, Sophie Randles and Jane Stewart, an ambassador for Women’s Enterprise Scotland, to inspire and empower female business leaders.
Alison said the aim of the series was to build a supportive community: “Each event has a theme, but there are perennial issues we address: How do we help the next generation of female founders access resources, unlock potential, and realise ambitions? How do we give women the confidence to make the right calls for their businesses, put decisions into action and grow dynamic companies? These events spark innovation, growth and diversity of thought.”
The latest edition of No Diversity, No Deal has reinforced the need for systemic change, with business leaders urging more investment and advisory support for women founders across Scotland and the UK.
Read more:
Women founders secure 25% less than men at exit, Evelyn Partners reveals