Backing female fund managers is the pathway to growth

Leandros Kalisperas, Chief Investment Officer at British Business Bank writes about how the Bank is championing diversity within the VC industry and how up to £250 billion of new value could be added to the UK economy if women started and scaled new businesses at the same rate as men.

Growth and diversity come hand in hand – you do not need to sacrifice one to achieve the other. The government has made it clear that growth right across the country comes from taking advantage of the UK’s unique strengths and untapped potential. Untapped potential is exactly what we face in our equity market’s funding gap for diverse founders, and it’s critical this is addressed at pace. 

There are several reasons why this gap exists, but one of the key challenges is the lack of women in investment decision-making roles. Research shows that there is a correlation between female representation at venture capital firms and how much they invest in female-led businesses. Only 23% of senior individuals on UK VC investment teams are women, and just 2p of every £1 invested in VC funding in the UK goes to businesses founded solely by women.

As the largest investor in UK venture and venture growth capital funds, the British Business Bank champions diversity within the industry and is one of only three LPs signed up to the Investing in Women Code. As the Bank’s first Chief Investment Officer, I see it as a priority to continue this leadership. But the Bank also recognises the clear commercial opportunity: up to £250 billion of new value could be added to the UK economy if women started and scaled new businesses at the same rate as men. Furthermore, the 2025 Investing in Women Code report found that unmet, viable demand for equity investment from female and ethnic minority-led businesses could add 13% to the value of the UK equity market. The Code itself, of which the Bank is a founding signatory, is a commitment to support the advancement of female entrepreneurship in the UK - in part by increasing the transparency of VC investors’ data concerning support for female entrepreneurs.  

In the last few months alone, the British Business Bank’s other actions in this area have gained significant momentum. The government’s recent Industrial Strategy announced that the Bank is committing £2.6bn of capital to help drive the growth of smaller businesses across the UK’s Nations and regions. Three of these measures are targeted at underrepresented investors and founders, including expanding the Bank’s Regional Angels Programme and diverse angel networks through new Angel Syndicate Support. 

Women are still in the minority of angel investors, and syndicates are key to bringing in more female angels. Earlier this year, the Bank committed £7 million to a new platform enabling it to invest alongside five of the UK’s emerging angel syndicates, including two female-led angel groups. Other investments in the last six months include to the Blume Equity Fund and Revaia Growth II, both focusing on sustainable and climate innovation, and to THENA Capital’s inaugural Med Tech Fund. These are just a handful of the unmistakable investment opportunities that also happen to be female led. 

Most recently, the Bank announced a £500 million package to back diverse and emerging fund managers. Of this, £100 million has been committed to the Invest in Women Taskforce funding pool, to be invested through the Bank’s existing programmes, and £400m is a new Investor Pathways Capital initiative. This will operate across three pillars: backing more diverse fund managers through the Bank’s Enterprise Capital Funds Programme; investing in micro funds to support early-stage funds; and backing partners to, in turn, invest smaller amounts in talented individuals to build a track record. 

Supporting the pipeline of female talent is an incredibly important part of this journey. In recognition of the need to unlock other doors, the Bank has launched an Emerging Female Investor Office Hours initiative to those considering making an application to one of the Bank’s equity programmes. This will deliver pre-application drop-in sessions, connecting potential or emerging female investors with members of the Bank’s equity teams, enabling them to seek clarity on the process. Crucially, sessions will be held remotely to ensure all those interested can access the office hours, regardless of where they are based. This initiative is spearheaded by Christine Hockley, Managing Director & Co-Head of Funds, who recognises the unique position the Bank is in to offer tailored, non-financial support as well as funding. Initial take-up in the few weeks since launching is proof of the demand. 

In short, the UK has one of the most exciting innovation ecosystems in the world. Underserving the diverse and female investors and entrepreneurs within it, is underserving the UK equity market and its future success. I look forward to seeing this recent momentum build as we implement these initiatives from 2026. 
 

Authored by Leandros Kalisperas, 
Chief Investment Officer at British Business Bank

The opinions expressed in this article are those of the author. For more information, visit the British Business Bank website.