In a bold move to drive inclusive economic growth, the UK Government has announced a landmark £500 million investment aimed at empowering underrepresented fund managers and entrepreneurs across the country.
According to the official UK Government website, the initiative was launched on July 10, 2025, by the Department for Business and Trade, the British Business Bank, Baroness Gustafsson of Chesterton CBE, and The Rt Hon Rachel Reeves MP. This initiative aims to create opportunities for women, individuals with disabilities, and people from low-income or underrepresented communities.
At the core of this new initiative is a £400 million package, set to launch in 2026 through the British Business Bank. This funding aims to assist fund managers from diverse backgrounds in developing the credentials and track records necessary for success in venture capital. The program will be structured around three main pillars:
- Backing diverse fund managers through the Bank’s Enterprise Capital Funds programme, which helps fuel early-stage, high-growth businesses.
- Supporting micro-funds—typically £10–15 million—which serve as the entry point into venture capital for new investors.
- Funding partnerships that provide training, mentorship, and capital to talented individuals with potential but without access to wealth or networks.
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Breaking Barriers for Women in VC
The Bank has committed an additional £50 million specifically to female-led venture capital funds, effectively doubling its existing pledge to £100 million. This funding will bolster the ongoing efforts of the Invest in Women Taskforce.
New findings released alongside this announcement reveal a positive trend in the UK’s investment landscape: for the first time, angel investors are backing more all-female founding teams than all-male teams.
However, significant gaps persist. Female-founded businesses receive only 2 pence of every £1 in UK venture capital funding, and women hold only 13% of senior roles in venture capital firms. The government’s Plan for Change aims to address this disparity by directing at least 50% of the new investment toward female fund managers.
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This initiative represents more than just a funding boost; it signals an intent to reshape the UK’s venture capital ecosystem. By promoting inclusion, the government seeks to create a more dynamic and representative economy where entrepreneurial potential is not determined by background, gender, or geography.
As the UK intensifies its focus on innovation and economic reform, this investment, confirmed on GOV.UK, serves as a stepping stone toward a future where all aspiring investors and founders, regardless of their starting point, have a fair chance at success.
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