British Business Bank's 400M Pound Initiative Targets Equity for Underrepresented Fund Managers

By: WE staff | Friday, 11 July 2025

• The British Business Bank has launched a new £400 million fund, the Investor Pathways Capital programme, which is scheduled to start in 2026
• The program seeks to enable a next generation of diverse venture capital fund managers throughout the UK

The Investor Pathways Capital program, a new £400 million initiative from the British Business Bank, is scheduled to begin in 2026. With a focus on expanding access for people from underrepresented backgrounds, the program is intended to assist diverse and up-and-coming venture capital fund managers.

This significant funding program is intended to facilitate access for new and diverse entrants, especially women, ethnic minorities, and those from underrepresented or disadvantaged backgrounds, into the venture capital business.

One of the primary objectives is to bridge the long-standing funding gap for underrepresented founders and investors. Systemic bias, dependence on closed networks, and a shortage of diversity within current investors have constrained access to venture capital. The initiative expects at least 50 percent of the capital to be invested in female fund managers.

This action is part of the British Business Bank's continued work to promote gender balance in business finance. As part of its initiative as a member of the “Invest in Women Taskforce”, the Bank had previously committed £50 million to funds run by women. Through this move, it is doubling that total—committing another £50 million to women-run funds in the UK's eight strategic growth sectors identified through the Industrial Strategy—taking the overall commitment to £100 million.

The Invest in Women Taskforce is led by entrepreneurs Debbie Wosskow and Hannah Bernard and seeks to break down the obstacles that women encounter when accessing business capital. British Business Bank CEO Louis Taylor highlighted the wider contribution of inclusive investing:

"To deliver the government's growth aspirations, it's critical that high-potential founders—irrespective of background—have access to the finance required to grow. The UK venture market today is experiencing a profound funding gap for diverse founders. This £400 million investment will attempt to fill that gap by backing nascent, diverse fund managers who, subsequently, will invest in the innovative founders that are presently underfunded."

The British Business Bank is also a founding signatory of the Investing in Women Code, a government-led initiative created in response to the Rose Review, which identified access to finance as a key barrier to female entrepreneurs.