What the rise of impact VCs means for UK startups

Does greater impact mean better results?

Early last year saw the founding of Pink Salt Ventures, the UK's very first female VC fund - formed by two female investors, Samira Ann Qassim and Saloni Bhojwani, specifically for female founders.

L-R: Saloni Bhojwani and Samira Ann Qassim of Pink Salt Ventures

Technically unlawful due to its discriminatory nature by the British Business Bank, it turns out positive discrimination is still discrimination.

It's hard to follow the rules of a playbook for a broken game

But when less than every £1 of venture capital investment goes to all-female founding teams, or when we learn that 1.1% of of Europe’s venture deals in 2021 went to all-women founding teams, it's hard to follow the rules of a playbook for a broken game.

Whilst the British Business Bank makes some effort (they are "a founding signatory of the Investing in Women Code") the sore state of gender equality in business make it impossible to sit back and hope these shocking inequities will just sort themselves out.

The good news is that since the trailblazing Pink Salt Ventures (or PSV for short) came into existence, others have thankfully followed suit.

The Female Founders Fund team in NYC

Hollywood actress Anne Hathaway was recently in the news for backing Pact, an all-women led VC for mission-driven startups in the UK, with Voulez Capital now in Europe. These funds add to the burgeoning group of female-focused investment firms in the United States, including Female Funders Fund, January Ventures (formerly known as Jane VC), Astia (excuse the website), BBG Ventures -

From L-R: Tong-Gu Reem, Mobassaleh Wyndham and Monik Pham of Pact VC

These female-focused VCs have been gaining traction, with female founders reporting an increased willingness to invest in female led businesses – a clear and much-needed sign of progress. On top of that, the recent emergence of what are known as ‘impact venture capitalists’ has redefined the way startups and scaleups can operate - not only offering female founders access to funds, but bringing a wider focus on purpose and positive social impact.

DEI is front & centre of their thesis without alienating other demographics.

This is particularly welcome news for startups in the UK - with the rise of impact VCs with at least one female founder themselves (like Carbon 13 or Ada Ventures), female founders now have access to an ever-growing pool of venture capital that is committed to their success, as well as a long-term success. Here, DEI* is front & centre of their thesis without alienating other demographics.

L-R: Check Warner, Xun Ning Choong, Diarra Smith, and Matt Penneycard of Ada VEntures

Ultimately, gender equality is a generational social justice fight that runs deep in the fabric of our society - from unconscious bias to overtly broken systems - this is a problem that won't be solved right away, but these funds are examples of steps taken in the right direction.

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*DEI = Diversity, Equity & Inclusion