We want meaningful change. 

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

• 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:

• 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) 

• The lack of investment translates to a loss of $4.4 trillion in missed revenue for women and minority-owned business enterprises. (Morgan Stanley)

• 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.

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To sign and support, please complete this form (and we will add your name to the list).

Sincerely,