Commons Sense

House of Commons · Westminster Hall

Venture Capital: Access

13 May 2025 · 3 other contributors · 3,783 words

Opened by Sarah Olney Lib Dem Richmond Park

Responding minister: Gareth Thomas

Business & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Sarah Olney raised concerns about venture capital: access in Westminster Hall. A government minister responded.

Key points

  • Venture capital in the UK is inequitable, with ethnic minorities receiving only 10% of first-time equity deals and 6% of total investment value in 2022.
  • The Minister acknowledged the need for more action and noted the launch of a call for evidence to address challenges faced by ethnic minority business owners.
  • A BVCA study covering 370 firms and over 14,000 employees highlighted the need for improving diversity within the VC industry.

Key requests to Government

The Government should take meaningful action to ensure that the UK’s venture capital industry is accessible and inclusive by increasing transparency in data reporting on VC deals.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Sarah Olney Lib Dem Richmond Park

Venture capital in the UK is inequitable, with ethnic minorities receiving disproportionately lower percentages of VC deals and funding. In 2022, only 10% of first-time equity deals went to all-ethnic minority teams, and only 6% of total investment value went to all-female founder teams. Additionally, black founders received just 0.24% of venture capital funding between 2009 and 2019.

Other contributors (3)
  • Gareth Thomas Lab Cynon

    The hon. Member for Cynon highlighted world-leading experts such as Professor Monder Ram, whose comprehensive report “Time to Change: A Blueprint For Advancing the UK’s Ethnic Minority Businesses” sets out a potential £75 billion growth opportunity in ethnic minority businesses. The Government plans to become an implementation partner and work with Aston University's Centre for Research in Ethnic Minority Entrepreneurship.

  • Jesse Norman Con Richmond Park

    Called for more urgent action on closing the finance gap for ethnic minority-led businesses.

  • Jim Shannon DUP Strangford

    Committed to securing this debate, Jim Shannon highlights Northern Ireland's Minorities Recognition Awards which offers grants of up to £10,000 for entrepreneurial individuals from ethnic minority backgrounds.

Government Response

Gareth Thomas

The Parliamentary Under-Secretary of State for Business and Trade

The Minister acknowledged the progress made but highlighted that more needs to be done, noting a call for evidence on access to finance launched last month to consider challenges faced by ethnic minority business owners among others. The BVCA study covered 370 firms and over 14,000 employees, underlining how far there is still to go in improving diversity within the VC industry. The hon. Member for Richmond Park cited a recent British Business Bank report focusing on venture capital investment professionals’ ethnic diversity. The Minister acknowledged the disparity in representation across different levels within VC firms and supported voluntary industry codes like the Investing in Women code, which has seen signatories accounting for 47% of venture capital deals, growing annually. Acknowledged progress but admitted it was not enough, committed to accelerating progress through industrial strategy, small business strategy, and partnerships with the private sector.

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