Chantelle Young leads the Tech Nation program, which helps “underrepresented” founders grow. … [+]
Now let's look at some statistics. Fast forward to 2023, and the UK government-backed Rose Report revealed that 150,000 women started their own businesses in the previous year. This is twice her number recorded in 2018. The findings have significant implications for entrepreneurs and those seeking evidence of increasing diversity within the small business community. Tick-tock. There has definitely been progress.
But that's not all. Rose's research also found that less than 1 percent of VC investments were allocated to women-led companies. Meanwhile, separate statistics from Extend Ventures show that between 2013 and 2023, only 0.14% of venture funding went to companies led by women of color.
This last statistic was highlighted by Tech Nation in its launch announcement for the latest edition of a program aimed at supporting the UK's “underrepresented” founders. The initiative, dubbed Libra, is now in its third year and is committed to helping participants address the challenges they face on their entrepreneurial journeys. This year, 25 companies have decided to participate.
When I spoke to Chantelle Young, Head of Libra Program at Tech Nation, I was curious to find out more about the thinking behind the program and why we need active support for diverse founders in the UK. I did.
Tech Nation was originally established in 2014 as a publicly funded body with a mission to accelerate the growth of the UK's technology-led innovation economy. It was shut down early last year when the government withdrew funding, but was later revived by entrepreneurial community Founders Forum. This resurgence has allowed programs like Libra to continue.
Emphasis on diversity
But this is what we need in 2024.
As Chantelle Young explains, efforts to support underrepresented and marginalized groups were seen as a continuing need. “When we came back, this was an area we wanted to prioritize,” she says.
Young acknowledges the UK's achievements in developing a more diverse group of founders, but more needs to be done. “Progress has been minimal,” she says.
It's backed up by statistics. Black and multi-ethnic communities in the UK make up around 14% of the total population, but between 2009 and 2019, the proportion of VC investments in ethnic minority-led teams was 1.7%, according to Extend Ventures. For black women, this number was just 0.02 percent.
actual support
Therefore, targeted support is required. But what does that actually mean? “We're looking for people who have been historically underrepresented,” Young says. “Black, Asian, Middle Eastern, Latinx, and mixed ethnic backgrounds. These are the people least likely to receive VC funding.”
People in this group were selected in some cases because they were known to advisors within the Tech Nation and Founders Forum communities, but Young said there was an active engagement campaign with strong candidates. he says. “We did a lot of outreach,” she says.
One of the aims of the six-month program is to provide a forum for founders to discuss the issues they face and provide peer-to-peer support. In addition, Tech Nation provides mentoring and coaching tailored to the needs of companies and also facilitates introductions to potential investors, customers and business partners.
“There is interaction with the broader ecosystem and an opportunity to build connections,” Young says. “And we've already seen the introductions.”
Peer-to-peer contact, combined with coaching and referrals, was a familiar practice in old technological nations. The question, of course, is how can we ensure that community-centered programs actually deliver results?
Young said participants set measurable goals for themselves. “We talk to founders and have goal-setting sessions. We ask them what they want to achieve. It could be funding, rebranding, or international expansion. ” This provides the basis for measuring the success of the program, along with more general indicators such as investment, employment, and revenue, which are measured over time across cohorts.
So what does this program offer from an entrepreneurial perspective?
Entrepreneur's perspective
Sade Amale is the CEO and co-founder of Deeploop, a startup that provides an AI-driven market research platform. As Amare explains, the platform uses data from multiple sources such as text and video to analyze consumer sentiment. The output from the platform provides clients with insights into consumer behavior and attitudes. After a period of development, the platform was launched in 2023.
Amare cited several reasons for joining, including meeting other founders. “I wanted a sense of community,” she says. “Being a CEO is one of the loneliest roles.”
Additionally, she was looking for advice and guidance to make her business more visible, establish herself as a thought leader, and raise funds. Once Deeploop was shortlisted, her goals (which included scaling up, learning about HR, and eventually having the opportunity to give back) were all discussed.
These are ambitions that may motivate many founders to participate in acceleration and mentoring programs. So was there something particularly appealing about joining Libra, which focuses on underrepresented founders?
Amare said he initially decided to apply based on the program's alignment with his business, rather than Libra's core mission. “For me, what meant the most was what stage I was in,” she says.
It was only once the session began that the combination of ethnicity, gender, and background really became apparent. Amare says it provides an opportunity to share experiences. “You don't have to dwell on it, but it's a safe space,” she says.
But it's complicated. While peers can exchange “tips and tricks” based on their own experiences, Amare says a balance needs to be struck between the benefits of a diverse group and the need to avoid a feeling of separation. I am aware of that.
There are benefits associated with being part of a peer group. “We're building a business, but we're also building a business ecosystem,” she says. And participants stay in touch beyond the group and within the broader Founders Forum network of entrepreneurs, investors, and advisors.
A program built around networking and coaching could go a long way toward correcting some of the current imbalances in the startup experience. Chantel Young acknowledges that there are systemic issues that can only be addressed over time. One thing the program can do in this regard, she says, is identify issues that particularly impact underrepresented groups. The issue could then be raised at the policy level.
Almost by definition, the people in this cohort have already made some progress in building their businesses in technology. Elsewhere, some people may start a business with lower ambitions or delay growth plans, perhaps deterred by statistics showing a lack of funding or advice. Leveling the playing field will take time.
