Channel 4 Ventures unveils "Untapped," an innovative commercial venture aimed at investing in entrepreneurs often overlooked by traditional venture capital channels. Informed by recent research indicating that a narrow range of elite profiles historically secures significant investment, Untapped seeks to diversify this landscape.
Led by Channel 4 Ventures, Untapped will focus on high-growth businesses led by founders from diverse backgrounds, including considerations such as gender, education, socio-economic history, race, ethnicity, location, and employment background. Through a pioneering framework, Channel 4 aims to identify and invest in early-stage businesses with a broader founder base, encompassing women, individuals from non-elite educational institutions, diverse ethnic backgrounds, and entrepreneurs outside typical startup hubs.
Channel 4 Ventures commits to presenting a significant proportion of potential deals annually to its investment committee, focusing on businesses led by underrepresented founders. This initiative aims to inject millions of pounds of media value into supporting these entrepreneurs, fostering investment across the UK and nurturing innovation. Channel 4 Ventures benchmarked the profiles of hundreds of founders that secured investments valuing their companies at £100 million or more since 2013.
The data is based on analysis of founders’ disclosures of their race and ethnicity, gender, education background, employment history and company base 20 March 2024 2 – via analysis of publicly available data from LinkedIn and Pitchbook.
It reveals that these founders come from a narrow section of society: • 94% of founders were men, despite men representing only 41% of all UK graduates. • founders are fifty-one times more likely to have graduated from an Oxbridge university or its US equivalents, than a graduate of a university outside the top 100 institutions globally. • consumer companies in London, Oxford, or Cambridge are 11 times more likely to have raised a valuation of £100m+ than a company located anywhere else in the UK. • white university graduates are ten times more likely to have founded a consumer company at a valuation of £100m+ than a black graduate, and nearly twice as likely as an Asian graduate. • 67% of founders were either previous founders or came from within the traditional start-up/investor ecosystem.
Vinay Solanki, head of Channel 4 Ventures said, “Untapped will enable Channel 4 to invest in and incubate high-growth businesses, delivering significant commercial returns to drive forward Channel 4’s distinctive remit. The data implies that a wide range of talented founders leading attractive commercial organisations are being overlooked by the current ecosystem and we are committed to identifying and backing them. More broadly, Untapped can be a catalyst to grow the UK consumer investment landscape and encourage others to follow in the investment space.”
Speaking to Asian Voice about his ethnic minority roots, Solanki said, “I believe they (his ethnic minority background) truly influenced my perspective on the world, shaping how I interpret information, observe people, and cultivate resilience. Frankly, I don't dwell on it much. I see myself as British, that's where my mindset lies. While I have affection for India and visit often, I still identify as British. England is where I truly feel at home."
Solanki further added, “In terms of our investment activity, we're looking to bolster Channel Four's reserves based on our latest public accounts. Channel Four has long been a champion of underrepresented voices, a mission that resonates deeply with me. I vividly recall the day Channel Four launched when I was seven years old, and since then, it has been a beacon for diverse voices. Working for this organisation is incredibly meaningful to me, as it allows me to contribute to the preservation of an independent media voice. This mission motivates me daily, especially in a crowded media landscape. Channel Four's commitment to diversity and championing marginalised voices is evident in its creative output, as demonstrated by the six Oscars it recently won."
The initiative, part of Channel 4's Fast Forward strategy, aims to expand its portfolio while reinforcing its digital-first public service streaming platform. By leveraging data insights and hosting annual roadshows, Untapped will facilitate partnerships with high-growth ventures across the UK.
Interested parties are invited to submit business proposals to [email protected] by April 17. Channel 4 Ventures will assess founders' self-disclosed data to identify their profiles and conduct annual roadshows to engage with potential partners.
