Despite progress, barriers persist in access to finance for underrepresented founders.
Public and private sectors share a responsibility to dismantle these barriers and create equitable opportunities.
The funding gap for underrepresented founders
In the UK, the British Business Bank reports that all-female founding teams capture a tiny share of equity funding – just 2% in 2024. Mixed-gender teams do better, approaching 20% of deals, but still trail all-male teams seeking funding. Recent updates are blunt: most deals still involve founding teams with no women at all.
The problem extends beyond gender. Ethnic minority founders also face persistent gaps, with just 8% of total funding going to teams with at least one ethnic minority founder in 2024. Disabled founders also encounter additional barriers to accessing finance.
These gaps are not about individual capability, they reflect structural inequalities requiring systemic solutions. Investors are increasingly seeking diversity and acknowledging that fair evaluation isn’t just a moral imperative but a business advantage. Research published by McKinsey in 2023 noted that companies in the top quartile for gender diversity were 25% more likely to outperform financially while an ethnically diverse team correlated with 36% higher profitability. Investors are recognising that diversity of perspective and thought leads to better outcomes. Many investors see heterogeneous teams as better at spotting blind spots, serving wider markets and driving innovation and this can become a point of differentiation.
Confronting structural challenges
Every entrepreneur faces obstacles when raising money, but for underrepresented founders, those challenges can be more complex.. Access to networks and networking opportunities can be one of the biggest hurdles. The venture capital ecosystem still depends heavily on personal connections and warm introductions.
Then there’s the question of perception. Unconscious bias might mean that investors gravitate towards proposals that match past success whether this is demographics, education or backgrounds. This might make it harder if your proposition doesn’t mirror that track record.
Such subtle bias may frame questions: some might find they face additional scrutiny on projections, leadership ability or time commitment. But you can look to steer those conversations in the direction you wish – perhaps towards ambition, scale and opportunity. Reset the tone.
Disabled founders may face other challenges, unique to them. Accessibility, from physical access to spaces to the nuances of due diligence, and as in other areas of life, lags broader efforts to tackle inclusivity. Yet such lived experiences can also sharpen innovation and market insight, particularly in sectors where accessibility or adaptive technology is core to the solution. Such perception can be a valuable way of setting yourself apart.
The point isn’t to internalise any barriers, but to recognise them and build deliberate strategies to overcome them. You can’t control every investor’s mindset, but you can control your preparation, your network-building, and your ability to find aligned partners who value difference as an advantage – not a risk.
Building strategic networks
Networking is one of the most effective bridges to opportunity, but it’s about quality, not quantity. Focus on building authentic relationships with people who share your values and understand your sector. The most valuable introductions often come through trusted mutual contacts—individuals respected by both you and the investor.
Remember, this process is not just about convincing an investor of your proposal; it’s about finding a partner whose mindset aligns with yours for the long term. Look for investors who value diversity and understand your perspective—and consider whether their own team reflects those principles. A diverse investor team often brings broader insights, stronger governance, and better access to varied markets.
Strong networks also increase visibility. Attend industry events, join accelerator programmes, and engage with founder communities that offer active sponsorship rather than passive advice. A warm introduction from a peer or mentor can save weeks of cold outreach. Don’t leave this to chance—approach networking with the same precision and planning you would apply to a product launch.
Mentorship and peer support
A more targeted form of networking might take the form of individual mentorship. This can be about more than guidance – it’s also about access. The right mentor can help you understand investor expectations, refine your pitch, and connect you to capital. For underrepresented founders, peer networks can be incredibly valuable. Other entrepreneurs who’ve navigated similar challenges can share experiences, positive and negative, and provide introductions.
Mentorship also builds confidence. Knowing that someone credible believes in you can help you when meeting investors. It can put a spring in your step and help you show a confidence that might have been otherwise lacking. The combination of preparation, perspective, and moral support can be the difference between a conversation that stalls and one that ultimately turns into funding.
Learning from success
Following the news about successful companies in your sphere can be really helpful. Examples of underrepresented founders breaking through are increasingly visible and the media are keen to amplify such stories. Whether it’s women leading fintech start-ups, ethnic minority entrepreneurs building brands, or disabled founders pioneering innovative technology, there are plenty of role model stories.
Each of these prove that barriers can be overcome – and that authenticity sells. If anything, that is what investors really want. Few founders succeed by mimicking others, but by embracing their difference as a competitive edge. Their lived experience becomes the insight that drives innovation and connects with customers in ways that homogenous teams often miss.
The takeaway
There’s no single playbook for levelling the playing field, but the principles are clear: understand your strengths, build your network strategically, find mentors who open doors, and choose investors who share your values.
Underrepresented founders belong at the table. What’s more, investors increasingly recognise that diverse teams make better decisions and build stronger, more resilient companies. The task now is to turn that difference into differentiation: to make your story, your perspective, and your product impossible to ignore. Find what makes you unique and embrace it.
