The government may roll back changes to startups after critics warned they could deter female ‘angel’ investors.
The Nugget: Sam Smith fears women are being excluded
The government may reverse changes to rules encouraging start-ups after critics warned they could deter female “angel” investors.
Bim Afolami, the city’s minister, said this week that the government had noted the “major concerns”.
Angel investors pump money into startups.
Under current rules, companies need approval from city regulators before they can market themselves to investors.
But promotions targeting high-net-worth individuals — which includes most angels — are exempt.
A row has erupted over moves from January 31 that raise the high net worth threshold to £170,000 a year – from £100,000 previously – because only 72,500 women in the UK earn that amount. This has led to fears of women being excluded.
“This change puts blockers where they are not needed,” said Sam Smith, founder and former president of brokerage FinnCap.
“People from underrepresented backgrounds tend to support companies founded by other people from underrepresented backgrounds.”
“The lack of females able to invest in female founders is disastrous and patriarchal,” added Emma Sinclair, founder of digital marketplace EnterpriseAlumni.
(tags for translation) Daily Mail