The Purse’s Post

I interviewed Vick Pryce, a leading economist and adviser on The Purse Podcast last week. Here are the key takeaways: 1/ A historic budget Labour Chancellor Rachel Reeves presented one of the most significant tax-raising budgets in UK history. But with all this spending, can we expect real growth? Vicky Pryce unpacks the numbers: “This is about better housekeeping, but will it truly drive sustainable growth?” 2/ Impact on businesses Many firms, especially startups, are concerned. “There’s a need to balance taxing businesses with encouraging growth.” 3/ Pensions investing in UK equities & growth Rachel Reeves wants UK pension funds to invest in domestic equities & growth capital to boost innovation and growth. But as Pryce points out, “While this shows confidence in UK businesses, we must ensure it truly benefits the economy and retirees alike.” 4/ Innovation & productivity AI & digital transformation hold promise, but are we ready? Businesses need to rethink workforce strategies with AI. Pryce points to gaps in productivity. Training & tech adoption are key. 5/ Brexit & trade challenges Pryce doesn’t hold back on Brexit’s ongoing economic impact. “The bureaucracy around EU trade is a massive cost,” she says. How can the UK address these added costs to keep productivity competitive? Closer ties with Europe may be one answer. 6/ Crypto, bitcoin & CBDCs The UK needs clarity on crypto regulation to keep pace with the US, where steps toward crypto adoption are bolder. Time for proactive policy? 7/ Support for female founders Rachel Reeves supports the Invest in Women Taskforce which aims to raise a £250m for female founders. “The more we support women entrepreneurs, the closer we get to gender parity,” says Pryce. Female founders help build a stronger, more resilient economy. 8/ The US election’s ripple effect UK markets may see volatility. “Protectionist policies would polarise the global economy,” warns Pryce, highlighting the need for the UK to consider stronger EU trade ties. 9/ Final thoughts In the face of change, Pryce emphasises the need for a balanced approach: support for tech & R&D, clarity on crypto regulation, and policies that make the UK a competitive place to start & grow businesses. 🔗 Catch the full episode for more on navigating these challenges and building a resilient economy. 🎧 #Podcast #Economy (see links below) Don't forget to follow Jana Hlistova and sign up for The Purse newsletter (links below).

Well this is good news…kinda 🤔 Fantastic to see the ridiculous legislation on angel investing overturned, but still a very long way to go to level the playing field for investment in female founded businesses. Just look at the stats shared in Grace Beverley’s post below 👇 If you’d like to better understand the challenges that females face when trying to raise, and explore the opportunities to improve, take some time to read the Alison Rose Review of Female Entrepreneurship: https://lnkd.in/eSErWXeY #FemaleFounders #InvestHer #FundingGap

Here's what we talked about in last week's Investing Short: Money, and why women should be in charge. /1. We have a huge amount of respect for Christine Lagarde /2. If you like a lot of chocolate on your biscuit… /3. Investing in reverse /4. Remember Harry Patch /5. What a discretionary portfolio looks like – and what they charge you. Or, this is what Consumer Duty is all about. /6. Valuations and hot air /7. “I need a pension of £60k per year, I’ve got £90k in my pension” /8. Pay rises in 2023 – what’s in your wallet? https://lnkd.in/eZRshgs8

It's the gift that keeps on giving.... So this brilliant post by Grace Beverley highlights how OUR money, that's our tax and pension money is funding the social inequality and disproportionate under-funding of female and minority owned businesses. The stats are: -that less that 2% of VC funding goes to female founded businesses -less than 1% to minority owned businesses -0.02% to Black female founded teams, the rest goes to white male founded businesses. Research has shown that female founded businesses deliver twice as much (per dollar), yet the government hasn't put the necessary actions in place to ensure an equal footing for female and minority led businesses, who would in turn be able to significantly contribute to our economy. The math isn't mathing, for a country supposedly positioning itself at the forefront of innovation and gender and racial equality we're absolutely failing, sorry THEY are failing. Time for yet another letter to Jeremy Hunt to explain how to actually do the job that they are tasked to do. The link is below if you'd like to drop Jeremy and his team a line. And Happy Friday...I guess. #womensinternationalhistorymonth #notmymoney

Not my money ➡ 90% of VC money currently goes to all-male teams. (Dealroom) ➡ Less than 2% of venture capital funding goes to all-female founder teams, with this percentage remaining stagnant for a decade. (British Business Bank) ➡ Less than 0.02% of VC funding goes to black-female founder teams. (British Business Bank) ➡ The lack of investment translates to a loss of $4.4 trillion in missed revenue for women and minority-owned business enterprises. (Morgan Stanley) ➡ Women-owned startups deliver twice as much per dollar as men. (BCG) #NotMyMoney

An update on the VC funding campaign for female-founders. 2% is shocking - especially given the economic impact that female-founded businesses have. Take a look at Grace’s points below and sign if you agree

You might know that only 2% of VC funding is given to female-founded businesses, but did you know that’s coming out of your pension and tax money? Here’s what you can do about it. In the UK, taxpayer money is used to invest in businesses through a range of partners, whether that's through funding or government-backed VCs. The #NotMyMoney campaign is asking Jeremy Hunt, the British Business Bank, and other taxpayer-funded organisations that a fair share of our taxpayers money goes to investing in female- and minority-founded businesses. These demands are not to fill a quota, but to unleash the economic impact of these too-often-missed opportunities. The government needs reminding that up to £250 billion in new value could be added to the UK economy if women started and scaled new businesses at the same rate as men. (The Rose Review). I've signed the #NotMyMoney open letter to the Chancellor and the Shadow Chancellor and I'd strongly urge anyone else who wants to change the funding gap to do so too. If you're on the fence, here are some stats: ➡ 90% of VC money currently goes to all-male teams. (Dealroom) ➡ Less than 2% of venture capital funding goes to all-female founder teams, with this percentage remaining stagnant for a decade. (British Business Bank) ➡ Less than 0.02% of VC funding goes to black-female founder teams. (British Business Bank) ➡ The lack of investment translates to a loss of $4.4 trillion in missed revenue for women and minority-owned business enterprises. (Morgan Stanley) ➡ Women-owned startups deliver twice as much per dollar as men. (BCG) You can sign the letter here:

We did it! We overturned legislation! If you've watched my stories for the past few months, you’ll know that I’ve been getting uncharacteristically (lol) angry about the new legislation on angel investing which in some areas of the UK would’ve meant that ZERO women would be able to angel invest. In a world where we make women rely on angel investment due to the fact that only TWO PERCENT of VC funding goes to women-owned businesses, this change was just so poorly thought out and would’ve had huge impacts on the gender wealth gap. Two weeks ago we were told by the government that a reversal of the policy in the budget couldn’t be done. But last week, after the investHER-UK open letter hit over 3k signatures, the chancellor announced in his Spring Budget a reversal of both the income and the net asset threshold for angel investing - it’s been overturned!! I’m SO pleased the campaign has been able to make a difference. This morning I was invited to Downing Street to talk about it, and let me tell you, we did not use it to celebrate our ‘win’. Because in many ways, this isn’t a win. Our campaign was to stop things getting worse for women, but there’s a long long way to go before things are better, and the government need to do more to tackle the funding gap and tackle the roadblocks that are holding back female entrepreneurs across the country. A 98% funding gap is quite frankly embarrassing, and that’s before we even look at the stats for Black women (0.02% if you’re asking)… So, if, like me, you’d like to continue getting angry and change entrepreneurship landscape for the better, here’s some sobering stats to have in your arsenal: 1. Female founders recieve just 2% of Venture Capital funding in the UK across all industries (UK treasury, 2021) 2. £250 billion of value could be added to the UK economy if women started and scaled businesses at the same rate as men (Rose Review, 2019) 3. When women-led start-ups do get funded, they’re more likely to be successful. They ultimately deliver more than twice as much per dollar invested. (BCG, 2019)

"2 weeks ago we were told by the #government that a reversal of the #policy in the budget...on angel #investing which in some areas of the UK would’ve meant that ZERO women would be able to angel invest...couldn’t be done. 1. Female #founders receive just 2% of #VentureCapital #funding in the UK across all industries (UK treasury, 2021)...A 98% funding gap is quite frankly embarrassing, and that’s before we even look at the stats for Black women (0.02% if you’re asking)… 2. £250 billion of value could be added to the UK #economy if women started and scaled businesses at the same rate as men (Rose Review, 2019) 3. When women-led #startups do get funded, they’re more likely to be successful. They ultimately deliver more than twice as much per dollar invested. (Boston Consulting Group (BCG), 2019) But last week, after the investHER-UK open letter hit over 3k signatures, the chancellor announced in his Spring Budget a reversal of both the income and the net asset threshold for angel investing - it’s been overturned!! 🎉 This isn’t a win. Our campaign was to stop things getting worse for women, but there’s a long long way to go before things are better, and the government need to do more to tackle the #fundinggap and tackle the roadblocks that are holding back female #entrepreneurs across the country." All excerpts from the post below by Grace Beverley #InspiredByYou and all those who activated swiftly to ensure this was reversed. #leadership #business #power #strategy #education #advocacy #innovation #finance #economy #inclusion #belonging #money #cultureofmoney #community

It's important to recognize that millionaires and billionaires contribute significantly to the economy by creating jobs, generating wealth, and investing in various industries. Their success often benefits society at large, whether through direct employment or by driving innovation. Rather than vilifying them, we should consider the broader implications of policies that drive wealth creators away. When successful individuals leave due to heavy taxation or restrictive policies, the entire country feels the impact. Lost capital means fewer businesses, fewer jobs, and ultimately, less tax revenue. Policies that discourage wealth creators can inadvertently hurt the very people they are intended to protect, as the economic void they leave behind cannot be easily filled. It's unfortunate that in our current climate, envy and resentment sometimes overshadow the benefits these individuals bring. Instead of seeing them as part of the problem, we should be finding ways to keep them engaged in our economy, ensuring that their contributions continue to support growth, innovation, and prosperity for everyone. Protecting wealth creators isn't about favouring the rich, it's about fostering an environment where everyone has the opportunity to thrive.