Inbizzy, London, – The UK government, through its economic development bank, British Business Bank (BBB), has announced a £500 million ($674 million) fund package aimed at supporting underrepresented venture fund managers and startup founders, including women and ethnic minorities.
Inclusive Growth Through the Plan for Change
Part of the government’s broader Plan for Change, the initiative is designed to create a more inclusive venture capital landscape and accelerate long-term economic growth. The funding will be allocated as follows:
- £50 million specifically for women-led venture capital funds, supporting the Invest in Women Taskforce
- £400 million to back diverse fund managers and early-stage businesses, and to expand access for individuals from disadvantaged backgrounds who aspire to become investors
The program targets at least 50% of investments to go to women-led fund managers.
Official Statement from BBB
As reported by TechCrunch,
“The initiative announced today aims to reduce the significant gap in venture capital investment for underrepresented founders and investors,” the BBB said in its press release. “It will target at least 50% of investment going to female fund managers.”
The Numbers Behind the Gap
The statistics underscore the need for such measures:
- Only 13% of UK venture capital teams have women in senior roles
- Black founders receive less than 2% of VC funding
- Just 2 pence of every £1 invested goes to women-led businesses
Launch Timeline
The fund will begin deployment in 2026, with an emphasis on transparent selection processes and long-term impact on equity in investment ecosystems.
This funding marks one of the most ambitious steps taken by the UK government to bridge systemic funding gaps and elevate inclusive economic growth through equitable access to venture capital.
