TLDR:
- Just 0.7% of venture capital funding for AI software in the UK since 2010 has been invested in women-led startups.
- The Alan Turing Institute report recommends investors ringfence capital for women and underrepresented groups in the AI sector.
Article Summary:
The influx of cash into AI startups has disproportionately left female founders behind, according to new research from the Alan Turing Institute. Only 0.7% of venture capital funding for AI software in the UK since 2010 has been invested in women-led startups, with women-led startups accounting for just 4% of the total companies in the subsector. The lack of diversity was highlighted by Prof Judy Wajcman, lead author of the report, who emphasized the economic implications of this disparity. The report recommended investors specifically allocate funds for women and other underrepresented founder groups in the AI sector to address this issue.
Another recommendation from the report is for investors to collect and publish diversity data, particularly when investing in new tech ventures. This aligns with the suggestions made by the women-led high-growth enterprise taskforce, advocating for transparency and accountability in the VC ecosystem. In response to these findings, the Invest in Women Taskforce was announced by Prime Minister Rishi Sunak, aiming to drive more investment into female-founded businesses. Co-chaired by entrepreneur Debbie Wosskow and Hannah Bernard of Barclays UK, the taskforce’s core aim is to create a funding pot specifically for female-founded businesses.
The gender disparity highlighted in the report is further compounded by the observation that women-led startups are less likely to receive funding due to such imbalances in the VC ecosystem. This calls for policy reform and industry-led initiatives to promote diversity, equity, and innovation in the AI sector.
