How diverse has the distribution of the ‘Future Fund’ been during the pandemic?

Today the British Business Bank publishes Future Fund data that gives a detailed picture of the 1,055 companies that have been approved for £1,066.6m worth of Convertible Loan Agreements since the scheme was launched on 20 May. There have been 1,616 applications in total since the scheme launched. The Future Fund will close for applications on Sunday, 31 January 2021.

This data shows where companies are based across the UK and the composition of the senior management teams by gender and ethnicity. This data is self-reported by the companies applying to the Future Fund.

Data by region

The data reveals that 39% of the funding approved for companies, relating to convertible loan agreements worth £419.8m, was for businesses with their headquarters located outside of London. Of the total amount of £1,066.6m, 15% is to companies headquartered in the South (South East and South West), 10% in the North (North West, North East and Yorkshire and the Humber), 8% in the East of England, 4% in the Midlands (East Midlands and West Midlands) and 3% in the Devolved Nations (Scotland, Wales and Northern Ireland). London accounts for 61% of companies, in line with the wider market trends for equity investments. The British Business Bank’s 2019/20 Small Business Finance Markets report showed that London received 66% of equity investment by value in 2019.

Data by gender mix of senior management team

Of the 1,055 companies that have been approved and received their Convertible Loan Agreements for signature, 77% of funding is to companies with mixed gender senior management teams. Since the launch of the Future Fund more than 30 venture capital firms and angel groups have become signatories to the Government’s Investing in Women Code, alongside the Future Fund.

As part of its commitment as a signatory to the code, the Future Fund will supply HM Treasury with statistics on founder gender. HM Treasury intends to publish the first annual Investing in Women Code Report in the first quarter of 2021.

Data by ethnicity mix of senior management team

Black, Asian and Minority Ethnic (BAME) only and mixed ethnicity management teams account for 63% of funding to companies that have been approved for Convertible Loan Agreements so far, worth £617.4m.

Future Fund data by gender of company senior management team (self-reported by applicant)

Management Team No. of
convertible loans
approved
Value of
convertible loans approved
All female team 13 £13.7m
All male team 278 £216.6m
Mixed gender team 722 £786.7m
Chose not to provide data 42 £49.6m
Grand Total 1055 £1066.6m

Future Fund data by ethnicity of company senior management team (self-reported by applicant)

Management
Team
No. of convertible loans approved Value of convertible loans approved
All BAME team 54 £52.3m
All white team 425 £370.3m
Mixed ethnicity team 494 £565.1m
Chose not to provide data 82 £79.0m
Grand Total 1055 £1066.6m

Future Fund data by location where company applying to Future Fund is based

  No. of convertible loans approved Value of convertible loans approved
East Midlands 14 £18.0m
East of England 73 £81.5m
London 606 £646.8m
North East 29 £24.8m
North West 56 £54.5m
Northern Ireland 11 £11.8m
Scotland 19 £7.0m
South East 122 £130.5m
South West 45 £29.9m
Wales 16 £8.7m
West Midlands 33 £22.5m
Yorkshire and the Humber 31 £30.6m
Total 1055 £1066.6m

The Future Fund uses an online platform based on a recognised financial instrument, and a set of standard terms with published eligibility criteria. The process provides a clear, efficient way to make funding available as widely and as swiftly as possible without the need for lengthy negotiations.

Official statistics report senior management team composition because Future Fund is available to many companies beyond early stage. Our analysis of the company founder data, where available, shows it tracks above market figures for gender diversity.

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