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Investors must avoid tokenism to improve VC diversity

VC diversity

Entrepreneurship thrives in the UK, thanks in large part to the crucial role played by venture capital investment. Our VC market is the largest in Europe, bigger than France and Germany combined.

It delivers essential funding for high-growth potential businesses in software, fintech, the life sciences, deep tech and other R&D-intensive sectors.

Equity-backed businesses in the UK directly support 2.2m jobs and generate 11% of gross domestic product

However, when you look into the detail of these investments one troubling fact emerges: you are far more likely to attract funding if you look and sound like me.

Women, people from ethnic minorities, and those from lower socio-economic backgrounds are significantly less likely to receive VC investment.

Recent research from the British Business Bank reveals the share of total equity investment for all-female founder teams has remained stubbornly stagnant at just 2% for more than a decade....