Advancing Diversity in UK Venture Capital: Where We Are & Where We Need to Go

The latest BVCA/Level 20 Diversity Report gives us reason for cautious optimism – but let's be honest about how far we still have to go. 
 

Key Findings: Progress and Areas for Improvement 

Women now make up 27% of investment professionals in UK venture capital, up from 24% in 2023. At the senior level, women hold 15% of roles compared to 12% last year. Progress? Absolutely. Enough? Not even close.
 

The Strategic Importance of Diversity 

On ethnic diversity, the numbers tell a complicated story. While 18% of investment professionals come from Black, Asian, and other minority ethnic backgrounds (broadly mirroring national demographics), senior decision-making roles remain disproportionately white. The UK ranks third in Europe for female representation on investment teams – better than many, but still trailing behind France and Sweden.

I've spent years talking about why diversity matters in venture capital, but it bears repeating: this isn't just about fairness. Diverse teams make better decisions, spot opportunities others miss, and generate stronger returns. The business case is clear and compelling. Yet diverse founders, particularly women and those from ethnic minority backgrounds, still face significant barriers to accessing capital. The disconnect between what we know and what we do continues to hold our industry back. 
 

Moving Forward: A Commitment to Long-Term Change 

So, where do we go from here? Moving the needle requires more than good intentions – it demands concrete action and accountability, ranging from: 

• Setting measurable and aspirational diversity goals with transparent reporting 
• Implementing inclusive recruitment practices 
• Creating structured pathways for underrepresented groups to reach check-writing positions 
• Fostering genuinely inclusive workplace cultures where different perspectives are valued 
• Collaborate across the ecosystem to amplify impact 

 
Conclusion: The Path Ahead 

The BVCA/Level 20 report shows we're making progress, but the pace of change remains frustratingly slow. This work isn't a sprint – it's a marathon that requires sustained commitment even when the headlines move on to other topics. 

At Diversity VC, we remain focused on creating the infrastructure that makes lasting change possible. I'm convinced that together, we can build a venture capital ecosystem that truly reflects and serves the society we live in. 

Authored by Meghan Stevenson-Krausz
Co-CEO, Diversity VC