Addressing Structural Inequality in Social Investment

At UnLtd, we’ve spent the last 18 months exploring how structural inequality, racism, and bias within the investment sector impacts social business founders from underrepresented backgrounds. The statistics reveal a stark reality: whilst Black and Multi-Ethnic communities represent 14% of the UK population, all-ethnic teams received just 1.58% of all venture capital funding across stages between 2009–2019.

We know this isn’t acceptable. That’s why we’ve partnered with Big Issue Invest and learning partner Shift to develop the Growth Impact Fund—a fund designed to operate differently from traditional social investment approaches.

Over the next ten years, the Growth Impact Fund will invest £25 million into diverse-led social businesses, creating unprecedented opportunities for underrepresented founders to scale their impact and achieve sustainable growth.

What We Believe: The Power of Diverse Leadership

We believe that diverse founding teams hold some of the keys to solving rising inequity, and the Growth Impact Fund will help them unlock this potential. Our core beliefs drive everything we do:

Diverse Leadership Drives Innovation

Investing in diverse-led organisations is fundamental to addressing inequality in the UK. Diverse founders bring unique perspectives, lived experience, and deep understanding of underserved communities, enabling them to develop innovative solutions that create meaningful social impact.

Structural Barriers Create Untapped Opportunities

Structural barriers in the social investment sector have created significant funding gaps for diverse-led founders and teams, directly impacting their opportunities for sustained growth and inhibiting their potential to create greater change. These barriers represent one of the greatest untapped opportunities in the investment market.

Different Investment Approaches Yield Better Outcomes

To address these opportunities effectively, we need to invest differently. Traditional investment approaches weren’t designed with diverse founders in mind, which is why we’ve created the Growth Impact Fund with enterprise-centric processes and inclusive practices.

Inclusion as Competitive Advantage

Investing in equality, diversity, and inclusion isn’t just the right thing to do—it’s our competitive edge. Diverse teams and inclusive approaches consistently deliver superior outcomes across financial, social, and environmental metrics.

Our Transformative Approach to Social Investment

The Growth Impact Fund represents a fundamental shift in how social investment can operate when designed specifically for diverse founders. Our approach addresses systemic barriers whilst creating new opportunities for transformative impact.

Enterprise-Centric Design

Rather than expecting founders to adapt to traditional investment processes, we’ve redesigned our entire approach around the needs and aspirations of diverse-led social businesses. This means accessible application processes, culturally competent support, and flexible financial products that align with diverse founder goals.

Partnership-Driven Model

We recognise that transforming social investment requires collaborative effort. Our partnership approach brings together the best expertise, networks, and resources to support diverse founders throughout their investment journey and beyond.

Continuous Learning Framework

We don’t claim to have all the answers, but we’re committed to systematic learning and improvement. Our continuous learning approach ensures we remain responsive to founder feedback and evolving sector needs.

Patient Capital Philosophy

As an Evergreen fund structure, we can provide patient capital that aligns with the development timelines required for sustainable social impact, rather than demanding rapid returns that may compromise mission alignment.

Comprehensive Blog Series: Our Learning Journey

The following series of blogs shares our approach and learning that have shaped our beliefs and methodologies. We’re committed to transparency about our perspectives, gaps in understanding, and ongoing development:

1. Understanding the Problem

Our case for change: Why dedicated investment for underrepresented founders is essential, backed by research and data demonstrating systemic barriers and untapped potential.

2. Enterprise-Centric Fund Design

Putting founders first: How we’ve redesigned investment processes, support mechanisms, and financial products around the needs of diverse-led Social Purpose Organisations.

3. Partnership as Foundation

Collaborative transformation: How we’re building strategic partnerships across origination, support, governance, and learning to maximise impact and effectiveness.

4. Continuous Learning Methodology

Embracing iterative improvement: Our systematic approach to learning from successes, challenges, and failures to continuously enhance our support for diverse founders.

The Scale of Opportunity and Need

The Growth Impact Fund addresses both significant market opportunity and urgent social need:

Market Opportunity

• Untapped potential of diverse founders who bring innovative solutions to underserved markets
• Growing demand for social impact investments that deliver both financial and social returns
• Emerging evidence that diverse teams and inclusive practices improve investment outcomes

Social Need

• Rising inequality exacerbated by recent economic challenges
• Underinvestment in communities most affected by systemic disadvantage
• Need for scalable solutions developed by founders with lived experience and community connections

Economic Impact

• Job creation in underserved communities through diverse-led social businesses
• Economic inclusion through innovative products and services designed for marginalised populations
• Market innovation through fresh perspectives and approaches to persistent social challenges

Call to Action: Join Our Movement for Change

Achieving justice means changing the status quo. Changing the status quo starts with us, but we can’t accomplish this transformation alone. If you share our beliefs, we’re asking you to take action alongside us.

Partner with Us

Origination partnerships: Help us surface and connect with amazing, diverse-led founders who could benefit from our investment and support.

Community partnerships: Collaborate with us to build trust and accessibility within underrepresented communities.

Sector partnerships: Work with us to influence broader adoption of inclusive investment practices across social investment.

Support Our Work

Co-investment opportunities: Join us as co-investors in specific portfolio organisations, bringing additional capital and expertise to support diverse founders.

Evergreen fund support: As an Evergreen fund structure, our fundraising continues throughout our lifecycle. We seek funders who share our commitment to long-term transformation.

Capacity building: Support our organisational development and learning activities that enhance our effectiveness in serving diverse founders.

Engage and Learn with Us

Knowledge sharing: We’re actively seeking inspiration, challenge, and good practice from others working towards inclusive investment and social transformation.

Open dialogue: We’ll happily share what we’re doing, what we’re learning, and where we’re facing challenges to contribute to sector-wide improvement.

Research collaboration: Partner with us on research projects that build evidence for effective approaches to inclusive social investment.

Our Commitment to Transparency and Accountability

The Growth Impact Fund operates with unprecedented transparency about our approaches, learning, and outcomes:

Public Learning

We commit to sharing our methodologies, successes, challenges, and failures publicly to contribute to sector-wide improvement and enable others to build on our experiences.

Impact Measurement

We’ll measure and report on both financial and social returns, demonstrating the effectiveness of inclusive investment approaches and the impact achieved by diverse founders.

Continuous Improvement

We’ll adapt and improve our approaches based on founder feedback, outcome data, and sector learning, ensuring we remain responsive and effective.

Sector Influence

We’ll use our platform and learning to influence policy, practice, and investment flows across the broader social investment sector.

Looking Forward: Ten Years of Transformative Investment

Over the coming decade, the Growth Impact Fund will:

Invest £25 million in diverse-led social businesses, creating unprecedented access to capital for underrepresented founders.

Demonstrate impact through measurable social, environmental, and financial outcomes that prove the effectiveness of inclusive investment approaches.

Build evidence for sector-wide adoption of inclusive practices, contributing to systemic transformation of social investment.

Create networks of successful diverse founders who can mentor and support the next generation of social entrepreneurs.

Influence policy and practice across the investment sector, creating lasting change that extends far beyond our direct investments.

The Ripple Effect: Beyond Direct Investment

The Growth Impact Fund’s impact extends beyond our direct portfolio through:

Sector Transformation

Demonstrating that inclusive investment approaches deliver superior outcomes, encouraging broader adoption across social investment.

Policy Influence

Contributing evidence and advocacy for regulatory and policy changes that support inclusive investment practices.

Network Effects

Creating connections and collaborations between diverse founders, investors, and support organisations that generate ongoing value.

Knowledge Building

Developing and sharing methodologies that enable others to implement inclusive investment approaches effectively.

Ready to join our movement for transformative social investment? Whether you’re a potential partner, co-investor, or fellow traveller on the journey towards inclusive investment, we welcome conversations about collaboration and shared learning.

Contact us to explore partnership opportunities, learn more about our approach, or share your own experiences and insights in building more equitable investment ecosystems.

Legal Notice: The Growth Impact Fund is managed by Big Issue Invest Fund Management Ltd (BIIFM). BIIFM is authorised and regulated by the Financial Conduct Authority (FRN: 610618) as a small authorised UK AIFM in accordance with article 3(2) of the AIFMD to manage unregulated AIFs. The fund is addressed to professional investors only. Past performance cannot be relied upon as a guide to future performance. Investor capital is at risk. Any target is not a predictor, projection or guarantee of future performance.