← Back to Westminster Hall Debates
Venture Capital: Access
13 May 2025
Lead MP
Sarah Olney
Richmond Park
LD
Responding Minister
Gareth Thomas
Tags
EconomyTaxationEmployment
Word Count: 3783
Other Contributors: 3
At a Glance
Sarah Olney raised concerns about venture capital: access in Westminster Hall. A government minister responded.
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:
Lead Contributor
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.
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
Government Response
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.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.