UK Government Unveils £500 Million Fund to Boost Diversity in Tech Investment
📷 Image source: techcrunch.com
The UK government has announced a £500 million funding initiative aimed at supporting underrepresented investors and founders in the technology sector. The program, unveiled on July 13, 2025, seeks to address systemic disparities in venture capital access for women, ethnic minorities, and other marginalized groups.
According to the Department for Science, Innovation, and Technology, the package will provide grants, mentorship, and networking opportunities to level the playing field in an industry where less than 2% of venture funding currently goes to Black founders and only 1% to all-female teams. The initiative will be administered through the British Business Bank in partnership with regional development agencies.
Industry leaders have welcomed the move. 'This is a crucial step toward unlocking the full potential of Britain's diverse entrepreneurial talent,' said Tech Nation CEO Gerard Grech. The announcement follows similar efforts in the U.S., where the Biden administration launched the $100 million 'Equity' program in 2023 to support minority-led startups.
Critics argue more structural reforms are needed, but proponents see this as a significant commitment to creating a more inclusive innovation economy. The first round of applications is expected to open in September 2025, with priority given to founders from disadvantaged backgrounds and investors focused on underserved regions outside London.
