Source · Select Committees · Women and Equalities Committee
Recommendation 1
1
Accepted
Require venture capital firms to increase the proportion of women on investment committees.
Recommendation
It should be a concern to all that a tiny fraction of venture capital investment goes to supporting women-led businesses. Despite numerous reviews and initiatives this situation is getting worse not better. Venture capital firms must do more to challenge themselves into providing investment on a more equitable basis including by increasing the proportion of women on investment committees as a priority. The Government should use the levers at its disposal to encourage systemic change in the industry. We set out some key steps it can take later in this Report. (Conclusion, Paragraph 19)
Government Response Summary
The government accepts the recommendation, outlining new specific actions through the British Business Bank's Strategic Plan. These include launching the £400m Investor Pathways programme, expanding support to diverse angel networks with new Angel Syndicate Support and Embracing Diversity programmes, and strengthening data collection to promote transparency.
Government Response
Accepted
HM Government
Accepted
We welcome the Committee’s focus on improving access to finance for female entrepreneurs and share the ambition of ensuring that innovative businesses can thrive regardless of the gender or background of their founders. The British Business Bank’s new Strategic Plan places a clear emphasis on unlocking the potential in people and places, supporting high-potential companies, whoever leads them and wherever they are based, to access the capital they need to start, scale and succeed. Within this framework, the Bank already embeds diversity and inclusion across its investment processes and partner assessments, ensuring that its interventions contribute to a more accessible and inclusive finance ecosystem. The Bank is delivering a substantial programme of activity that aligns strongly with the intent behind the Committee’s recommendations. This includes the Start Up Loans programme, which consistently supports a significantly higher share of female and ethnic minority entrepreneurs than the wider market; the expansion of the Angel Syndicate Programme, which is increasing the number of women and other underrepresented individuals participating as angel investors; and major initiatives such as the £400m Investor Pathways Capital scheme and the £100m commitment to female fund managers, deployed through existing Bank programmes. More recently, the Bank announced an additional £30m anchor investment in the Invest in Women Taskforce’s Women Backing Women Fund of Funds, which will broaden the diversity of decision-makers and help channel more capital to diverse founders. The Bank also continues to strengthen data collection and encourage responsible investment practices to promote greater transparency and best practice across the fund managers and lenders that it supports. We will continue to work closely with the Bank, the Invest in Women Taskforce and industry partners to build a more inclusive finance environment that supports women-led businesses across the UK. We welcome the Committee’s recommendations as a valuable contribution to this shared ambition, and we remain committed to ensuring that the Bank’s strategic plan delivers meaningful progress for female founders as part of a more dynamic and representative entrepreneurial ecosystem. We would encourage the Committee to meet representatives of the British Business Bank to hear more about its current work and forward planning in this space, and to support continued constructive engagement.