The Treasury Committee Report on the Venture Capital Market - considering investment into early stage businesses - has been released.
No real surprises, finding that diversity in the sector is very poor with women and people from ethnic minorities highly underrepresented and London highly overrepresented.
The report recommends that certainty regarding EIS and VCT after 2025 be provided as a matter of urgency and venture capital firms be required to comply with the industry standard Investing in Women Code or explain why they are not.
To address the London-centric nature of venture capital investment and the statistics showing that firms outside London tend to take longer to get established, the recommendation is that HM Treasury consult on extended age limits for businesses to qualify for EIS with the objective of alleviating regional inequality.
The report recognises that the venture capital sector can be an engine of economic modernisation and growth but is limited in recommending resources to address lack of diversity and regional inequality.