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British Business Bank’s Investor Pathways Capital initiative open for Microfund applications to support underrepresented and first-time fund managers

Press release 18 November 2025

  • £400m initiative designed to support first-time and underrepresented fund managers
  • Targeting at least 50% of all investment to go to female fund managers who meet the initiative’s access-to-capital requirements, British Business Bank will act as a cornerstone Limited Partner, helping managers build a track record and gain early fund management experience

The British Business Bank has opened applications for Microfunds as part of its new £400m Investor Pathways Capital initiative. Microfunds is dedicated to supporting very early-stage investors from a wide range of backgrounds in building investment track records and launching their first venture capital funds. 

Designed exclusively for first-time fund managers, Microfunds aims to widen access to capital and lower the barriers to entering venture investing for those with: limited personal or closed-network capital; and / or limited connections to established Limited Partner networks. It aims to address key challenges, such as securing cornerstone investors and raising sufficient commitments to establish an initial investment track record. 

The British Business Bank aims to address these barriers by providing targeted support to solo general partners and teams looking to raise early-stage micro funds ranging between £5 million and £20 million. The Bank will act as a cornerstone Limited Partner in these funds, giving high-potential investors the opportunity to gain early fund management experience, expand their track record, and accelerate future fundraising momentum. 

Targeting female fund managers

As part of our commitment to widening access, the Bank will target at least 50% of all investment to go to female fund managers who meet the initiative’s access-to-capital requirements. Research shows that there is a correlation between female representation at venture capital firms and how much they invest in female-led businesses. 

Just 2p of every £1 invested in venture capital funding in the UK goes to female-founded businesses and only 13% of senior individuals on UK venture capital investment teams are women. The 2025 Investing in Women Code report has found that investing in female and ethnic minority-led businesses could add 13% to the value of the UK equity market, underscoring the importance of backing diverse founders.

Christine Hockley, Managing Director & Co-Head of Funds, British Business Bank said: 

First time venture capital fund managers often face difficulty attracting sufficient commitments to raise a fund without already having an established investment track record. These constraints restrict the ability of talented individuals to back high-growth businesses and limits progression towards becoming long-term institutional-grade fund managers.

Investor Pathways Capital has been designed to address these challenges and helps unlock the UK’s commercial potential by establishing a more inclusive investment ecosystem that supports new and emerging talent, giving them the tools that they need to succeed.

Mark Sims, Senior Director of Funds, British Business Bank said: 

The British Business Bank has a strong track record in supporting emerging fund managers through its Enterprise Capital Funds. With this new initiative, we hope to support even more funds dedicated to UK startups and early-stage businesses. In doing so, we will drive further investment into the domestic VC market and build a stronger investment ecosystem.

Blair McDougall, Minister for Small Business and Economic Transformation, said: 

By lowering the barrier to enter investing, Microfunds will play a key role in helping more of the UK’s talented and ambitious fund managers take their first step and reach their potential.

This is the latest step in the delivery of our ambitious Industrial Strategy and will open up growth opportunities by encouraging a greater flow of capital to a wider group of entrepreneurs. This will ensure that those of all backgrounds and demographics have the chance to grow their business and the economy.

Application criteria and process

The Investor Pathways Capital initiative will back underrepresented, first-time fund managers raising UK-domiciled venture funds with a total fund size between £5 million and £20 million. Applications can only be made by prospective managers raising their first fund and cannot be made by companies seeking to access finance. 

Before entering the formal application process, prospective managers must first complete the pre-application form How to apply  on the British Business Bank website, which will provide an initial assessment of eligibility for the programme.

For those who meet the initiative’s high-level requirements, the process thereafter consists of the following five stages:

  1. Formal application
  2. Exploration call
  3. Pitch meeting
  4. Due Diligence
  5. Investment Committee
  6. Legal Execution

At each stage of the process, proposals will be carefully reviewed by the British Business Bank Investment team, with submissions that meet the initiative’s criteria progressing to the next stage. 

How to apply

Prospective managers interested in applying are encouraged to start by reviewing all relevant information. Full details on the initiative and the submission process are published on British Business Bank.

Further Information

If you are a journalist and have a media enquiry, please contact [email protected].

Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support £23bn 1 of finance to almost 64,000 2  smaller businesses.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at British Business Bank.

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