Source · Select Committees · Women and Equalities Committee
Recommendation 5
5
Deferred
Mandate FCA to require venture capital firms to report and publish female-led business funding data.
Conclusion
We do not accept arguments that transparency and accountability in venture capital are too difficult, and neither should the Government. The Financial Conduct Authority should be mandated to require all registered venture capital firms to report on the number and proportion of deals that go to support female-led businesses and the overall proportion of funding that represents. These details should be published on an annual basis. Financial penalties should be levied on firms who do not comply with this reporting requirement. This regime should be introduced in this Parliament. (Recommendation, Paragraph 38)
Government Response Summary
The government deflects the recommendation for the FCA to mandate reporting and levy penalties on venture capital firms, instead highlighting Innovate UK's existing Women in Innovation Programme and its commitment to inclusive innovation.
Government Response
Deferred
HM Government
Deferred
We welcome the Committee’s spotlight on Innovate UK as a leader on this agenda and are pleased to share its recently announced programmes and commitments. Innovate UK is committed to driving inclusive innovation and realising the full potential of untapped talent in the UK. Women innovators represent a huge part of this currently untapped talent. Innovate UK’s Women in Innovation Programme has been running for 9 years. Since its inception in 2016, the programme has invested over £11 million in more than 200 women innovators and built a vibrant network of 11,000 women business leaders. Over this time, Innovate UK has seen an increase in the proportion of successful women-led applications across all competitions from 1 in 7 to 1 in 3. Success rates for applications to Innovate UK are equivalent for men and women. Over the last year, Innovate UK has engaged closely with the community to listen, learn and work together to identify opportunities to accelerate growth and scale for women-led businesses. In response, Innovate UK published a Pledge for Progress for Women in Innovation5 in April 2025, which set out 10 commitments, and a report on progress in October 2025. The 10 commitments have been designed to create more opportunities, foster inclusivity, and deliver systemic change for Innovate UK and across the wider innovation ecosystem. They include refining the Women in Innovation Awards and setting bold goals and measures for representation and inclusion in the future Innovate UK strategy. So far, new actions include establishing a Women in Innovation Community Forum, launching an assessor recruitment campaign and opening the competition for Women in Innovation Awards 2025/26 (as highlighted in the November 2025 Budget). Innovate UK is working closely with partners in the ecosystem to align efforts, including the British Business Bank, the Invest in Women Taskforce and the investment community. Innovate UK is a signatory of the Investing in Women Code and around 45% of Innovate UK’s investor partners are signatories of the code. Innovate UK is exploring opportunities to do more to help investors identify high potential women-led businesses and de- risk investments into these businesses (by providing due diligence on the innovation and offering aligned grant funding) and provide an incentive for change. 5 https://iuk-business-connect.org.uk/wp-content/uploads/2025/04/Advancing-Women- led-Innovation-%E2%80%93-Our-Pledge-for-Progress.pdf Recommendation 5a Ringfence a minimum of 30% of its funding for female entrepreneurs with year-on-year increases to 40% by 2030. Innovate UK’s Pledge for Progress for Women in Innovation sets out 10 commitments including, Commitment 4: “We will make bold commitments for inclusion and representation in our future strategy. These will feature specific, measurable goals for our entire organisation, and we will report on our progress annually.” Innovate UK is currently reviewing strategic direction for the future. Innovate UK is building inclusive innovation in by design, ensuring that it is central to the delivery of the future strategy. The Women in Innovation Awards 2025/26 has the biggest budget to date, reflecting a 20% increase over last year. There will be up to 60 awardees and to spread the benefits wider, highly commended applicants will also receive bespoke business support. Guidance on eligibility, scope, and priorities has been made clearer to ensure women innovators are spending their time on a competition that is right for them. Innovate UK is also piloting a new set of application questions designed to improve clarity and flow. In addition to the Women in Innovation Awards, Innovate UK supports other targeted programmes. These include the 2025 Global Business Innovation Programmes to Sweden and India focusing on Women in AI and Health Tech, ICURe Discover for Women Entrepreneurs, and the Women in Manufacturing Initiative. Beyond targeted programmes, it is essential that the full range of Innovate UK’s support and investment opportunities are more visible and accessible to women innovators. Opportunities are shared consistently across Innovate UK channels, including the Innovate UK Business Connect Opportunities and Events pages, the dedicated Women in Innovation newsletter, and the Women in Innovation LinkedIn group. The No Limits platform provides innovators with easy access to opportunities from more than 200 partners nationwide.6 The platform has curated content for women and highlights are shared regularly with the Women in Innovation community. 6 https://nolimits.ukri.org/ Recommendation 5b In the short-term lower leverage ratios and reduce match funding requirements for women-owned businesses to help level the playing field and allow equitable access to opportunity. Innovate UK recognises that aligned funding requirements can present barriers for some businesses, including women-led businesses. Innovate UK’s approach is to ensure that funding remains accessible