The British Business Bank has unveiled a £400m programme to address diversity challenges in the UK’s venture capital sector.
Set to launch in 2026, the Investor Pathways Capital initiative will target underrepresented fund managers, aiming to break down traditional investment barriers. The programme will focus on providing opportunities for diverse fund managers to establish themselves, with at least half of the funding earmarked for female fund managers.
Current research highlights the limited access that female founders have to venture capital, with only 2p of every £1 invested in the sector going to businesses led by women. In response, the initiative plans to channel investments into emerging microfunds and partners who can help build diverse investor track records.
In addition to the new programme, the British Business Bank will invest an extra £50m into female-led funds, increasing its total commitment to £100m. This move aims to address the persistent funding gap for diverse founders, which hampers their ability to scale businesses and limits overall market growth.
