Almost two-thirds (64 percent) of funding went to companies with all BAME or mixed management teams and 82 percent went to companies with mixed management teams.
Image source: Rishi Sunak / Trésor HM
Firms with Black, Asian and Ethnic Minority (BAME) and mixed ethnic groups account for well over half (64%) of companies that have accessed funding from the Future Fund, according to data released by the British Business Bank.
The vast majority (82 percent) of companies that have accessed financing through the Future Fund program have mixed senior executives.
Women and ethnic minorities have often been seen as under-represented in terms of access to venture capital, but this news shows the level of diversity of companies receiving convertible loan agreements under the Future Fund program supported by the government shows an improving trend in UK.
Data from the European Investment Bank shows that the percentage of female-led participation in venture capital in the EU has remained fairly stable, but low, since 2008, dropping from around 5% to a low. just under 10% in 2017.
To date, 590 companies have been approved for convertible loan under the Future Fund program, totaling over £ 588million.
Firms with purely BAME management reams received 28 convertible loans to the tune of £ 21.8million, while ethnically-run mixed ventures received 287 loans totaling £ 322.4million .
Despite a clear positive trend towards greater diversity in management teams, companies run entirely by white people still accounted for 224 loans, which amounted to just under £ 193million.
Companies with all-female management teams received 8 convertible loans worth £ 7.2million and all-male teams represented 147 loans totaling £ 94.1million.
Unsurprisingly, when it comes to regional distribution, London came out on top.
London companies have received 59% of convertible loans totaling more than £ 346million, although the city is not home to 19 percent of UK businesses.
The South East lags behind the capital, receiving 17% of loans to the tune of £ 89.5million.
The region with the lowest number of successful Future Fund applications was the East Midlands where only four companies were approved for a convertible loan.
Not too far ahead of the East Midlands, Northern Ireland was the penultimate region on the list, with just five Northern Irish companies receiving cash from the Future Fund.
East Midlands companies received £ 2.1million in convertible loans, while Northern Ireland companies received £ 5million in Future Fund loans.