The UK’s fastest growing technology startups and scaleups lack of women in top positions, according to research.
Consultancy Think & Grow’s recent study, Breaking and remaking the next generation of high-impact boards, found that only 12% of the fastest growing startups in the UK have a female CEO, chair or founder, and 36% have no women on their boards.
But those at the top of these organisations know it is important to have diversity on boards and in the C-suite, with 94% of board members and those at the top of UK tech companies saying diversity on a board is integral to a company’s success.
Jonathan Jeffries, CEO and co-founder of Think & Grow, said: “Most senior decision-makers at UK tech companies recognise the importance of board-level diversity, but many scale-up companies are failing to leverage the opportunities this brings.
“Successful companies need to think about diversity in corporate governance from day one, the founders who prioritise inclusion early can build boards that see around corners, solve problems faster and understand a broader range of markets and people.”
The lack of women not only in the technology sector in general, but in decision-making positions in tech, is an ongoing concern, with now defunct Tech Talent Charter finding that women made up only 21% of senior tech leaders in the UK within its signatories in 2024, and Frank Recruitment Group finding that women only made up a quarter of CIO positions in FTSE 100 companies last year.
Think & Grow’s research found that women make up only 18% of board roles within UK technology scaleups, though diversity at board level gets better depending on company size and revenue. Scaleups with revenue exceeding £50m, or scaleups founded in the past five years, have more women at board level. In FTSE 350 technology firms, women make up 41% of board directors.
It is an FCA requirement that boards in larger listed organisations must have a minimum of 40% representation, but the same cannot be said of C-suite representation, with only 12% of FTSE 350 companies having either a female CEO or chair – the same as in the UK’s fastest growing scaleups.
There are women in other roles in FTSE 350 technology firms that indicate diversity is improving – women hold senior roles such as chief operating officer, chief financial officer or senior independent director in 72% of these companies, and 80% have at least one woman in a senior leadership position.
But women only make up 28% of these roles overall, despite approximately a third of senior leadership acknowledging diversity at the top of companies contributes towards better customer representation, problem solving and positive company culture.
While the recent Lovelace report found that 60% of its respondents claimed they were struggling to find their way into leadership, Think & Grow’s research found that 93% of senior leaders and board members believe progress has been made in this area in the past five years.
As well as encouraging startups to think about diversity at their beginnings before they grow larger, Jeffries stated that not doing so can stand in the way of future success: “There is a clear correlation between diverse boards and strong corporate performance, yet many UK tech companies are failing to appoint board members with diverse backgrounds and expertise, which risks curbing growth.”
