UK Announces Over $500M For Diverse And New Fund Managers
The British Business Bank (BBB), the UK Government’s economic development bank, has announced a new £500 million ($674 million) economic package to back diverse and emerging fund managers.
The initiative aims to address the significant gap in venture capital investment for underrepresented founders and investors, which is often attributed to industry biases, closed networks, and limited diversity among investors.
Investing in women-led funds
Investing in female and ethnic minority-led businesses could add 13% to the value of the UK equity market, according to the 2025 The Investing in Women Code report. Additionally, research has found a correlation between the representation of women at venture capital firms and the amount they invest in female-led businesses.Â
The UK government-owned bank will set aside £50 million for female-led venture funds. The Bank has already committed to supporting the aims of the Invest in Women Taskforce by investing £50 million into female-led funds through its existing programmes, bringing the total commitment to at least £100 million ($135 million).
Read: Meet The Woman Helping Emerging Fund Managers Grow Their First Funds
Investing in diverse and emerging fund managers
The remaining £400 million ($539 million) will be allocated to support diverse fund managers, early-stage companies, and provide opportunities for people from disadvantaged backgrounds to become investors. The package begins deployment in 2026.
“The UK equity market currently experiences a significant funding gap for diverse founders, negatively impacting their ability to start a business,” Louis Taylor, Chief Executive Officer, British Business Bank, said.
“This new £400m Investor Pathways Capital initiative will support diverse and emerging fund managers across the UK, in turn supporting talented entrepreneurs currently underserved by the UK equity market.”
Image: Christina @ wocintechchat.com
