The British Business Bank, owned by the UK government, is creating a £500 million (around $674 million) economic package to help support diverse and underrepresented fund managers and founders in the country.
Fifty million pounds will be set aside for female-led venture funds, which means the BBB has now committed at least £100 million (around $135 million) to supporting female-led ventures and the government’s Invest in Women Taskforce. Meanwhile, £400 million (around $539 million) will go to backing more diverse fund managers and supporting early-stage companies, as well as helping to boost the talent pipeline to provide those from disadvantaged backgrounds the opportunity to become investors. The package begins deployment in 2026.
“The initiative announced today aims to reduce the significant gap in venture capital investment for underrepresented founders and investors,” the BBB said in a press release announcing the investment last week. “It will target at least 50% of investment going to female fund managers.”
It comes as the U.K. continues its push to attract and sustain talent to its venture ecosystem. The press release states that “breaking down barriers to opportunity will help drive growth as part of the government’s Plan for Change,” which encompasses various strategies to help drive economic growth in the country.
For women and people of color, the UK venture landscape can often be as disheartening as it is in the U.S. Around 13% of venture teams in the UK have women at a senior level, while dismal amounts of venture funding goes to minorities (less than 2% for Black founders as of a 2023 report, and 2 pence (around 3 cents) for every £1 ($1.35) invested goes to women.