Open Letter:
The Rt Hon Jeremy Hunt MP
Chancellor of the Exchequer
HM Treasury
1 Horse Guards Road
Westminster, London SW1A 2HQ
Rachel Reeves
Shadow Chancellor of the Exchequer
Address Unit 8a, Bramley Centre,
Leeds
LS13 2ETV
Friday 22nd March, 2024
Dear Jeremy and Rachel,
We are writing to you as a collective group of founders and investors who, after careful consideration, have become deeply concerned with how taxpayer money is being invested through Limited Partners in the UK.
There have been many many examples of reviews (The Rose Review), voluntary codes (Investing in Women Code), and Taskforces (the newly launched Taskforce for women-led businesses and UK Government Taskforce for High Growth Female Entrepreneurs) set up to shine a light on these in the hopes that when presented with the facts, investors would change their investing behaviour. They have not.
Over the last 10 years in spite of huge efforts, there has been no change in the amount of funding given to female and underrepresented founders. This indicates that there is a deeper level of systemic bias at work in the system, which we would like to see addressed.
As taxpayers, we are deeply concerned that taxpayer-funded investments are not being utilised to their full potential due to systemic biases and unaddressed discrimination within the UN financial system. These investments should be directed towards funds and initiatives that are promoting diversity, inclusion, and gender equity in entrepreneurship and investment.
We urge you to review the current investment practices and ensure that taxpayer money is being channeled more equitably.
Therefore, we feel now is the time to ask that:
-
The UK Treasury and the FCA set a target of at least 30% investors of the underrepresented gender (with significant ownership) on investment committees by 2030
-
The Department for Business and Trade and the Treasury allocate at least £1bn in additional funding to women and ethnic-minority founded businesses
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All UK VCs, LPs and Innovate UK to track and report investment/funding by gender and ethnicity and report on value and volume of investments annually
By redirecting investments towards initiatives that support and empower female and other underrepresented communities of entrepreneurs and investors, we can unlock significant economic potential, drive innovation, and foster a more inclusive and prosperous economy for all in the United Kingdom.
We are seeking a response as soon as possible, in order to unlock the £250 billion of economic value that women led businesses and female investors could add to the UK economy.
The current state of the UK financial capital system fails to acknowledge and capitalise on the wealth of knowledge, experience, and talent within the female investor and entrepreneur community.
The statistics regarding gender equity in the UK are alarming and indicate a systemic issue that needs to be urgently addressed:
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90% of VC money currently goes to all-male teams. (Dealroom)
-
Women make up only 17.7% of those with significant ownership of venture capital firms, which in turn limits the flow of capital to female founded businesses. (Ada Ventures)
-
Less than 2% of venture capital funding goes to all-female founder teams, with this percentage remaining stagnant for a decade. (British Business Bank)
-
Up to £250 billion in new value could be added to the UK economy if women started and scaled new businesses at the same rate as men.(The Rose Review)
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The lack of investment translates to a loss of $4.4 trillion in missed revenue for women and minority-owned business enterprises. (Morgan Stanley)
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Only 14% of the 36,800 angel investors in the UK are women. (UKBAA)
-
Businesses founded or co-founded by women perform better over time, generating 10% more in cumulative revenue over five years. (BCG).
-
Women-owned startups deliver twice as much per dollar as men. (BCG)
These figures reflect a dire situation where our economic growth potential is hindered by our failure to harness the significant economic contribution that women and other underrepresented groups can make as investors and entrepreneurs. The UK ranks 19th in the world in gender equality, significantly trailing many of our European peers (Economist, 2024). Harnessing the economic prowess of women entrepreneurs and investors could inject up to £250 billion into the UK economy, representing a substantial growth opportunity that we cannot afford to overlook.
To sign and support, please complete this form (and we will add your name to the list).
Sincerely,
Hephzi Pemberton
Founder, CEO & Angel Investor
June Angelides MBE
VC Investor
Sam Smith
NED, Angel Investor
Sumer Group Ltd
Alina Lapusneanu
Co-Founder & CEO
Roxanne Goodman
Founder
Chay Pearce-Cochrane
Partner; Angel Investor
Ren Yi Hooi
Founder & CEO
Amber Ghaddar
Founder and Managing Director
Lydia Gregory
CEO & Cofounder
Jess McCarten
Head of Ops
Lynn Anderson Clark
CEO & Co-Founder
Emmie Faust
Founder
Elissa Grey
NED, Board Advisor, Angel Investor
Tess Cosad
Founder & CEO
CatherineAnn Reid
Founder
Kalkidan Legesse
Founder & CEO
Thuria Wenbar
CEO and co-founder
Evaro
Joanne Dewar
NED, Angel
Jubilat
Gabrielle Patrick
CEO & General Counsel
Francesca Bean
Journalist
BBC
Hussein Kanji
Partner
Hoxton Ventures
Sara Tateno
Co-Founder & Co-CEO
Happity
Sridevi Vegasana
Founder and CEO
klip Global Ltd
Geeta Sidhu-Robb
CEO and Founder
WCorp
Caroline Hughes
Co-Founder
Womankind Ventures & Hive Founders
Meg Blight
Angel Investor, ex CVC
Startup Amplifier
Olivia Parkes
Founder & CEO
itoms
Tudorita Poenaru
Founder
RCCT CIC
Jill Pay
Chair
The Gender Index
Carla Ottersen
Co-Founder
Hot Shoe Media Ltd
Roei Samuel
CEO
Connectd
Andreea Daly
Founder
SaaSy Software Ltd & SaaSy Money Ltd
Danae Maragoutakis
Founder, CEO
Yoxly
Magda Daniloaia
Senior Product Manager
OWGTM
Andre Bentley
Tech Recruiter
Ellena Shroff
General Manager
Rachel Swann
Steph Cork
Founder
Sunflower Homes
Gareth Ellis
Owner and Lead Copywriter
Cloud Nine Writing
Hannah Samano
Founder & CEO
Unfabled
Olivia Tilley
Lucia Crisan
Roxanne Gates
Rebeca Guzmán Vidal
Founding Partner
Cúrate Ventures
Kate Jillings
Founder
ToucanTech (ToucanTech.com)
Hatim Siyawala
Founder & Director/Investor
Siya Tech Ventures
Daniel Forde
Founder
Forde Services LTD
Lucy Rees
Director
The Comms Studio
Georgia Fleet
Founder & CEO
Zonova Animal Health
Sverre Dueholm
CEO
comundo
Kevin Withane
Founder & CEO/Investor
Diversity X
Phoebe Sennett
Associate
Taylor Wessing
Tara Attfield-Tomes
Founder
EAST VILLAGE.
Shaun Phillips
Founder
Chat Automator
Esme Verity
Founder
Considered Capital
Charlie Goodman
Partner
Employee Benefits Collective LLP
Anna Logacheva
Founder
Inkeepit
Nicky Sedgley
Emma Sinclair
Founder, CEO & Angel Investor
Hailey Eustace
Founder & Angel Investor
Lois Day
Managing Partner
Nicola Horlick
Founder & CEO, Angel Investor
Tamara Lohan
Founder & CEO
Ed Fidoe
Founder & CEO
London Interdisciplinary School (LIS)
Kiran Bhagotra
Founder & CEO
David B Horne
Founder, CEO & Angel Investor
Tamara McMillen
Board Advisor and CRO
Kelli Fairbrother
Co-founder and CEO
udorita Poenaru
Founder
RCCT CIC
Helen Burnell
Partner
Shoosmiths LLP
James Thomas
Angel Investor
Rebecca Kelly
Founder & CEO
Venue Scanner
Ozohu Adoh
CEO
Katy Tuncer
Founder
Heather Black
Founder & CEO
Vanela Bushi
Partner
H Tree Capital
Tara Cemlyn-Jones
CEO
Charlene Armour
Founder
Armour (Global) Ltd
Emilie Bellet
Founder
Vestpod
Sophie Thurner
Co-CEO
beatvest
Kath Easthope
Co-founder and COO
Boardwave
Afiya Chohollo
CoFounder
CloudFO
Kashasai Elangkumaran
Ceo and Founder
Caass limited
Alexandra Farrell
CEO and Founder
Autometry
Angela Vinci
Co-founder & CPTO
Savi
Kristian Jones & Anji Gowing
Co Founders
MagicSauce.Online
Jenny Ervine
Founder and Angel Investor
Claire Barnett
CEO & Co-Founder
YourHaven
Amy Williams
Founder/CEO
Fem Foundry
Vanessa Lovatt
Founder
Forte Futures
Hazel Mulhare
Partner
Erevena
Simon Norris
Partner & COO
Equality Group
John Zafar
Chairman
Inclusive Employers
Victoria Wylde
Marketing Manger
Gander Limited
Inês Carvalho
Entrepreneur
Aquaterra
Grace Thompson
Jemima Bunbury
CEO & CoFounder
BLEND Fashion
Felix Meller
Founder
Agora Talent
Charlotte Marlor
Senior Consultant
IMPOWER
Emelia East
Head of Delivery
Wagestream
Kelly M Whitfield
Founder & CEO
KLIK UK (SaaS) Ltd
Hatim Siyawala
Founder & Director/Investor
Siya Tech Ventures
Monik Pham
Partner
Pact
Julie Cook
Founder
Eco Green Living Ltd
Chido Hession
Consultant
Equality Group
Joan Okoye
Business Owner
Anna Sofat
Founder
Addidi Angels
Mia Jones
Audrey Mandela
Co-Founder
Multimap
Jacqueline Allison
Solicitor
Jayne McGlynn
Corporate Lawyer
Julia Phillips
Director
Julia Andrews Property Management
Holly Donohue
Fractional CPO
Product Rebel
Mary Lin
Founder, co-CEO
Odin
Lucy Killerby
CEO and Founder
Talent Spaces
Roxane Sanguinetti
Co-Lead, Investor
Sarah Turner
Founder & Angel Investor
Dawn Marriott
Partner
Andreea Constantinescu
Managing Partner
Ladi Greenstreet
Co-CEO
Alexandra Depledge
Founder & CEO
Zandra Moore
CEO
Chris Lowe
Founder & Investor
Jenni Emery
Founder and Investor
Liza Tullidge
Founder & CEO
Kate Pljaskovova
Founder & CEO
Sarah Daniel
Co-founder and Co-CEO
Be More Savi
Rohit Nanda
Founder & CEO
Julie Park
Founder & CEO
VAT Consulting
Lucy Morgan
Founder
coldharbour.io
Nimrita Dadlani
Founder & CEO
Joanne Roxburgh
Chief Operating Officer
Skilled Education
Lucy Morgan
Founder & CEO
Smita Pillai
Angel Investor
Renee Watson
Founder & CEO
Check Warner
Partner
Ada Ventures
Jana Hlistova
Founder
The Purse Ltd
Caley-Maria Cavan
Student
LSE
Helena Cavan
Founder
Milestone detox ltd
Stephanie Drax
Founder / CEO
Leapfrog Remedies
Jessica Wakefield
Headhunter
Edward Nicholson
FinTech Innovation Programme Lead
Accenture
Eunice Baguma Ball
Co-founder
Sarah Whale
Founder
Profit Imoact
Alexander McLeod
University of Warwick
Rosie Millen
Founder
Miss Nutritionist
Jessica Lindvall
Law
HFW
Sophie Winwood
CEO
WVC:E
Sasha Graham
CEO
Equality Group
Lily Elsner
CEO & Co-Founder
Jack Fertility
Bridgit Richards
Founder
Power On
Ed Hardy
CEO
Tuza
Olivia Stannah
Founder
Tuza
Lois McGuinness
Gala Jackson-Coombs
Business Director
The Corner
Effie Kanyua
Founder
We Are Warriors PR and LILA Assistant
Anna-Sophie Hartvigsen
Founder
Female Invest
Francesca Opoku-Gyamfi
Planner
Michelle Lira
Global Client Director
Zara Nanu MBE
Founder and CEO
Gapsquare and WorkVue
Mya Dowdall
Student
Emma Cox
Founder
Dirty Wknd Ltd
Miles Angell
Co-founder & Creative Director
Angell Brothers
Dominique Mullally
Director
D Mullally Consultancy Ltd
Andrea MacDonald
Female Founder
Avenir
Erika Bahr
Founder, CEO
Daxe
Dale Amanda Heron
Director
Little Heron
Diane Blaxland
Director
Blaxland Consulting Ltd
Natasha minter
CEO
Modelme
Christelle Tumba
Senior Customer Success Manager
Natalie Connor
Head of Legal and Expansion
Crowdcube
Maggie Bolger
CEO
M+ADS
Sandra Hatugari
Founder, MD
Follett Parker
2X
Women-owned startups deliver twice as much per dollar as men. (BCG)
90
90% of VC money currently goes to all-male teams. (Dealroom)
10
Number of years VC investment has remained at 2% for only female-founded ventures. (BBB)