UK's Big Move to Back Diverse Investors and Founders

The UK is stepping up its game to support diverse investors and founders. A whopping £500 million (around $674 million) is being put into action by the British Business Bank, a government-owned entity. This money is aimed at helping underrepresented fund managers and founders get the backing they need. Out of this package, £50 million is specifically earmarked for female-led venture funds. This brings the total commitment to female-led ventures to at least £100 million, aligning with the government’s Invest in Women Taskforce. The remaining £400 million will support diverse fund managers, early-stage companies, and efforts to bring more talent from disadvantaged backgrounds into the investment world. The rollout of this package is set to begin in 2026. The goal here is clear: to shrink the huge gap in venture capital investment for underrepresented founders and investors. At least half of this investment is targeted at female fund managers. This initiative is part of the UK’s broader plan to attract and keep top talent in its venture ecosystem. Breaking down barriers is seen as a key driver for economic growth, as outlined in the government’s Plan for Change. For women and people of color, the UK venture landscape can be tough. Currently, only about 13% of venture teams have women in senior roles. Venture funding for minorities is also low, with less than 2% going to Black founders as of 2023. Additionally, women receive only 2 pence (around 3 cents) for every £1 ($1. 35) invested. This new package aims to change that.