Investor Pathways Capital

About the initiative

The Investor Pathways Capital initiative aims to support diverse and emerging fund managers across the economy and make it easier for new entrants, particularly those from underrepresented groups, to break into venture capital. The initiative, which will capture the value of a more inclusive investment ecosystem, is expected to launch during the first half of 2026.

The initiative is designed to increase investor diversity by reducing barriers to entry in venture capital investing for underrepresented founders and investors, which may stem from reliance on closed networks, limited diversity among investors, and industry biases.

Key objectives of the initiative

The Investor Pathways Capital initiative will operate across three pillars which include:

• Backing more diverse fund managers through the British Business Bank’s Enterprise Capital Funds programme.
• Investing in microfunds to support small, early-stage funds.
• Backing partners investing smaller amounts in talented individuals to build a track record, providing capital and training, to give them the opportunity to become investors.

Together, these pillars will create a pathway for new investors to build the experience and track record needed to raise their own venture capital funds.

A target of at least 50% of all Investor Pathways Capital investment going to female fund managers has also been set to further drive these efforts.

Programme focus and timelines

As announced in the recent Spending Review, the British Business Bank will continue to invest in Enterprise Capital Funds (ECFs). However, the focus of the Investor Pathways Capital will be on supporting microfunds, typically those under £20 million. This represents a new and exciting area for the British Business Bank.

Importantly, funding through the programme will be dedicated to backing underrepresented fund managers, with a particular emphasis on those investing predominantly in the UK. Our ambition is to support emerging fund managers in building a track record and taking their first steps into venture capital.

At this stage, we are not accepting applications, as the investment and application processes are still in development. We expect these to take shape over the coming months, with deployment of funds anticipated during 2026. If your team, or teams you are aware of, are considering launching a microfund, please keep an eye out for a formal application announcement expected in late 2025.

Interested in the Investor Pathways programme?

If you are a prospective applicant, we invite you to register your interest to stay informed. By sharing your contact details, you will receive updates once the key elements of the programme are confirmed. Please note this is not an application, but a means of receiving updates and announcements regarding the initiative.