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.

Investment Breakdown

• £50 million specifically earmarked for female-led venture funds.
• Brings the total commitment to female-led ventures to at least £100 million.
• Aligns with the government’s Invest in Women Taskforce.
• £400 million will support:
• Diverse fund managers.
• Early-stage companies.
• Efforts to bring more talent from disadvantaged backgrounds into the investment world.

Timeline

The rollout of this package is set to begin in 2026.

Goals

• 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.
• 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.

Current Landscape

For women and people of color, the UK venture landscape can be tough:

• Only about 13% of venture teams have women in senior roles.
• Venture funding for minorities is low, with less than 2% going to Black founders as of 2023.
• Women receive only 2 pence (around 3 cents) for every £1 ($1.35) invested.

This new package aims to change that.