A third of UK tech scale-ups lack women on boards, study finds

New analysis indicates that more than a third of the UK's fastest-growing technology start-ups have no women on their boards, with overall female representation in boardrooms lagging significantly behind that of larger, listed technology firms.

Board representation

The study found that just 18% of board roles among the 25 fastest-growing UK technology scale-ups are held by women. More than a third-36%-of these companies have no women on their boards at all. The figures contrast with those for FTSE 350 technology companies, where women account for 41% of board directors. Government and regulatory initiatives, such as the Financial Conduct Authority rules mandating a minimum 40% female board representation for listed companies, are seen as a contributing factor to the higher gender diversity among larger organisations.

Jonathan Jeffries, Chief Executive and Co-Founder of Think & Grow, said:

"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."

Leadership roles

Women remain underrepresented in senior board-level leadership roles at high-growth technology firms. Only 12% of the fastest-growing scale-ups have a female chief executive or founder, and an equal share have a female chair. These numbers are in line with the largest UK-listed technology companies, where 12% have a female chief executive and 12% have a female chair. However, 72% of these larger firms have women in additional key board roles including Chief Operating Officer, Chief Financial Officer, or Senior Independent Director. In total, women hold just under a third (28%) of senior board positions at these public companies, and 80% have appointed at least one woman to a top leadership role.

Diversity benefits

Board members and senior decision-makers from UK technology companies largely acknowledge the value of gender diversity, with 94% viewing a diverse board as essential. Despite this consensus, a disconnect persists between the recognition of diversity's importance and actual board appointments. A significant proportion of surveyed board members said that diversity improves customer representation (35%), enhances creative problem-solving (32%), and positively impacts company culture (30%).

Companies with higher revenues also display stronger board-level gender diversity. Among the fastest-growing technology companies, those generating more than GBP £50 million each year have an average female board representation of 22%, compared with 15% at those below this revenue level. At FTSE 350 tech firms, those with revenues above GBP £500 million see women holding 42% of directorships, compared with 37% at smaller listed businesses.

Progress indicators

There are indications that newer companies are placing a stronger emphasis on diversity. Scale-ups established within the past five years have, on average, a quarter (25%) of board positions filled by women, compared to just 10% at firms founded prior to this period. Views from industry leaders suggest optimism about recent improvements: 93% of surveyed board members and senior decision makers at UK technology firms believe there has been tangible progress in gender diversity over the last five years.

Jeffries 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. 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."

He also said: "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."