British Business Bank Pledges 500 Pound M to Support Diverse & Emerging Fund Managers

• To increase investment in underrepresented founders and investors, the British Business Bank (BBB) has started a new program
• The program's main goal is to increase diverse and up-and-coming fund managers' access to capital
• It also reaffirms the Bank's continued dedication to helping more female fund managers and founders
   

In a UK-first move, the British Business Bank (BBB) has unveiled a major initiative aimed at increasing investment in underrepresented investors and founders. The Bank has pledged £400 million through its new “Investor Pathways Capital” program—marking the first time it has allocated funding specifically for underrepresented fund managers. Half of this funding is earmarked for female fund managers, establishing the Bank’s first-ever gender-based investment target. The initiative is set to launch in 2026.

In addition, BBB has pledged an additional £50 million to the ‘Invest in Women Taskforce’, increasing its overall pledge to support women entrepreneurs to £100 million. In order to invest in women fund managers, who will then invest in startups and businesses founded by women, the Taskforce is currently raising a £250 million “Women Backing women” fund-of-funds.

The BBB, in its role as a key player of UK venture capital via its Enterprise and Patient Capital Funds, has already backed female fund managers such as Blume Equity, Thena Capital, and Revaia. However, there are serious gaps—just 2p of £1 of UK venture capital is invested in businesses started by women, and only 13 percent of senior investors are women.

This expanded scheme aims to turn those numbers around by also catering to investors from ethnic minority groups, disabled individuals, and lower-income families. It hopes to fragment the investment universe and allow new fund managers to create solid track records.

Chancellor Rachel Reeves noted the imperative for all-embracing growth as she stated the scheme formed part of the government's overall ‘Plan for Change’, designed to both generate employment and boost prosperity throughout the nation.

Women investors are statistically twice as likely to invest in female founders, according to Debbie Wosskow, co-chair of the Invest in Women Taskforce. "We developed a fund-of-funds strategy to allocate additional funds to female and mixed teams," she stated.

Growing investment in minority and female-owned businesses could add up to 13 percent to the value of the UK equity market, according to research cited by the Investing in Women Code. "To reach the full potential of the UK economy, we must expand access to capital—and that begins with making investors themselves more diverse," said Check Warner, co-founder of Ada Ventures.