The British Business Bank has announced a new £400m Investor Pathways Capital initiative to support those from diverse backgrounds entering fund management and investing.
The goal of the initiative is to support new entrants entering the field by backing diverse fund managers, investing in microfunds to support small, early-stage funds and working with partners investing smaller amounts in individuals to build an investment track record.
The British Business Bank hopes the plan will reduce what it has described as the “significant gap in venture capital investment for underrepresented founders and investors due to industry biases, reliance on closed networks, and limited diversity among investors”.
It will target at least 50% of investment going towards female fund managers.
“To deliver the government’s growth mission it is critical that our most promising entrepreneurs can access the finance they need to grow their businesses, no matter who they are or what their background is,” said chief executive Louis Taylor.
“The UK equity market currently experiences a significant funding gap for diverse founders, negatively impacting their ability to start a business.
“This new £400m Investor Pathways Capital initiative has the potential to unlock the UK’s full commercial potential and boost the UK economy.”
Alongside the Investor Pathways Capital initiative, the bank has also committed an additional £50m to the Invest in Women Taskforce, a government-appointed group tasked with addressing the gender disparity among founders.
This brings the total amount invested by the bank in the taskforce to £100m.
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