The research shows that while 94% of UK board members believe that it is essential to have a diverse mix of people on a company board, women hold just 18% of board roles across the UK’s fastest growing technology scaleups. Additionally, more than a third (36%) of these companies have no board-level female representation at all.

The findings highlight a disconnect between how companies within the UK’s fast-growing tech ecosystem think about diversity, and how they put this into practice. These findings are taken from Think & Grow’s latest report, Breaking and Remaking the Next Generation of High-impact Boards.

Board-level gender diversity at UK scaleups and startups is significantly lower than at listed technology firms – women make up 41% of all board directors across FTSE 350 tech companies, more than double the level seen inside early-stage businesses. Larger listed organisations must adhere to FCA diversity and inclusion rules that require a minimum of 40% female representation on boards. This points to an ecosystem where government or agency initiatives or recommendations play an important role in supporting diversity and highlights the need for scale-ups to be more proactive in boosting diversity.

Lack of female representation in senior leadership roles

Women also hold few senior leadership positions on the boards of the UK’s fastest-growing technology scaleups, just 12% of the UK’s fastest-growing technology companies have a female CEO, founder, or co-founder, and the same proportion have a female chair.

While these figures are identical across the largest FTSE 350 technology firms, where 12% have female CEOs and 12% have female chairs, larger companies have appointed more women to other senior positions.

For example, at 72% of these firms, women serve in senior board roles such as Chief Operating Officer, Chief Financial Officer or Senior Independent Director. Overall, women hold less than a third (28%) of senior board roles (CEO, chair, COO, CFO, senior independent director) at these listed companies, but 80% have appointed at least one woman to a top leadership position.

Diversity and performance

The findings also indicate that UK early-stage businesses may be missing out on improved performance through failing to prioritise board-level diversity.

Over a third (35%) of board members or senior decision makers at UK technology firms believe board diversity improves customer representation, while 32% say it enhances creative problem solving and helps boards identify blind spots. A further 30% highlight its positive impact on company culture.

Beyond this, the data highlights a notable link between gender diversity and financial performance. Among the UK’s fastest-growing tech companies, those with more than £50 million in annual revenue, have an average of 22% female board representation, compared to 15% among those below that threshold. This pattern holds for larger listed companies: at FTSE 350 technology firms with more than £500 million in revenue, for example, gender diversity stands at 42%, versus 37% at firms with revenue below this level.

Signs of progress

There are early signs of progress in terms of gender diversity among UK tech scaleups and startups.

At scaleups founded within the last five years, on average women hold a quarter (25%) of board positions, compared to just 10% among those founded more than five years ago. This suggests that diversity is more of a focus for the next generation of companies.

This aligns with the views of board members and senior decision makers at UK technology firms, 93% of whom believe tangible progress has been made on gender diversity within the last five years.

Jonathan Jeffries, CEO and Co-Founder of Think & Grow, says: “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.

“Most senior decision makers at UK tech companies recognise the importance of board-level diversity but many scaleup companies are failing to leverage the opportunities this brings. Enhancing diversity is not just a social responsibility for organisations, it’s a strategic advantage which can improve problem solving, reduce risk and bring in new perspectives to help identify challenges and opportunities to gain a competitive edge.

“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.”

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