Europe Fintech Lending

Convertible Loan Agreements Diversity Data Published by Future Fund

Last week the British Business Bank published Future Fund data that gives a detailed picture of the 465 companies that have been approved for £468.7m worth of Convertible Loan Agreements since the scheme was launched on the 20th May. There have been 781 applications in total in the first two months of operations.

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

Data by region

The data reveals 39% of funding approved to companies for convertible loan agreements worth £183.8m have their headquarters located outside of London. Of the total amount of £468.7m, 17% is to companies headquartered in the South (South East and South West), 11% in the North (North West, North East and Yorkshire and the Humber), 6% in the East of England, 2% in the Midlands (East Midlands and West Midlands) and 2% 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 465 companies that have been approved and received their Convertible Loan Agreements for signature, 82% 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 to sign HM Treasury’s Investing in Women Code, the Future Fund will supply HM Treasury with statistics on founder gender. HM Treasury intends to publish the inaugural Investing in Women Report later this year.

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 £271.1m.

The British Business Bank will publish a report examining the state of Entrepreneurship in the UK in the autumn. This will include data on ethnicity in addition to gender and location.

  • £468.7m worth of convertible loans approved for 465 companies – 39% of funding to companies outside London worth £183.8m – 82% of senior management teams are mixed gender
  • 59% of senior management teams are mixed ethnicity

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. Analysis of the company founder data, where available, shows it tracks above market figures for gender diversity.


  • Gina is a fintech journalist (BA, MA) who works across broadcast and print. She has written for most national newspapers and started her career in BBC local radio.

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