Incubator focuses on minority-owned start-ups

Tech Nation has selected its next cohort of fintech start-ups to participate in the Libra 2.0 programme, an inclusive incubator project. The programme is the latest in a series of successful initiatives focused on minority start-up founders

In 2021, Mastercard launched its Start Path programme, dedicated to supporting minority-owned start-ups and to furthering efforts to close the racial wealth and opportunity gap. Last year also saw the launch of Google’s Black Founders Fund, following data published in 2020 that revealed less than 0.25% of venture capital funding went to black star-tup founders.

The fortunate few

Libra 2.0 is designed specifically to combat racial inequality in UK tech by supporting ethnically under-represented founders. One of three fintech start-ups chosen for Libra 2.0 is Bloom Money, a savings club app that aims to help growing UK communities. Founder Nina Mohanty says: “We are excited to join a cohort of brilliant, innovative founders on the Libra programme. One of the joys of Bloom Money is that we are serving a diverse group of people who are typically overlooked and underserved.

“I’m looking for that network of like-minded people working through similar problems, who are trying to build big businesses and want to dream big. And I think I’ve definitely found a place for that,” adds Ms Mohanty. 

Sarah Wernér is co-founder and CEO of Husmus, an insurtech start-up that helps tenants and landlords better access and afford private renting. “Tech Nation is known as the place to be for any start-up looking to lead their category,” she says. “Several of its members have gone on to do amazing things and contribute to economic growth. It has done a great job of identifying great start-ups.

“We’ve been in the programme for just under two weeks and it’s already having an impact on our trajectory,” adds Ms Wernér.

Risk of a rug pull

Shortly after the 35 start-ups selected to join Libra 2.0 had been announced, it was reported that Barclays instead may be awarded the next £12bn government grant to become the UK’s “start-up champion”. As the winner of the grant this year, Tech Nation launched Libra for under-served founders, so rumours of this targeted assistance being removed when the grant comes due for renewal in December disappointed several Libra 2.0 participants. 

Irrespective of the grant allocation outcome, Tech Nation offered reassurance by stating that Libra 2.0 will continue to run and complete up until the current grant ends in March 2023. However, Ms Mohanty says she found suggestions in the media that government funding could go to Barclays shocking. She argues it would be anti-competitive to offer the grant to just one high street bank rather than all of those which have incubators.

Jason Halstead is founder of Uome, a platform that enables small businesses to run their entire companies from their mobile phones. “I was extremely proud to have been accepted onto the Libra 2.0 programme,” he says. “I knew that Tech Nation and the Libra programme had a great reputation, so for me it’s being able to access that invaluable knowledge and support that’s needed to grow and expand my business successfully.

“As a black fintech founder there aren’t a lot of programmes that offer a springboard to help you upscale and really grow your business. I thought it would be a great opportunity for me to grow my company,” he adds.

He says if rumours are true that the contract is going to Barclays it would be a “terrible decision”. He adds: “Tech Nation is an unbiased organisation. It’s designed for grassroots and has really helped them scale. And it’s got a great track record. Barclays is a multinational organisation. If they want to help grassroots start-ups and to help diversity, they don’t need government money to do so.”

Inclusion key for Libra

Abi Mohamed, Libra programme lead at Tech Nation, says the largest and most marginalised group that is unable to be awarded venture capital continues to be black people, specifically black females. “Data also shows south Asian women are getting less venture funding, and east Asian women are getting less than 1% of venture capital,” she says. “We want to support people that sit in that different intersectionality, so our big strides this year were supporting companies with at least one person identifying as an ethnic minority, but also encouraging more female-led companies to apply for the programme.”  

Brianna Bao, investor at Simsan Ventures and a Libra 2.0 judge, says: “Ensuring diversity in UK tech is key to catalysing a new wave of breakthrough technologies and transforming UK economies, societies and our lives.” She adds that Tech Nation's Libra programme will have her continuing support “to attract those brilliant founders who not only help implement inclusion to create an enabling ecosystem but also democratise services and resources in those overlooked markets.”