Business & Technology
Diversity VC says certified firms boost team diversity
Diversity VC has published a report marking its tenth year in venture capital, saying firms that use its certification standard have made stronger gains in team diversity than the wider market.
Titled The Infrastructure of Change: What 10 Years Taught Us About Driving Impact in Venture Capital, the report reviews the non-profit’s work over the past decade and sets out recommendations for the sector. More than 100 venture capital firms representing USD $44 billion in assets under management are now certified through the Diversity VC Standard, it says.
According to the report, certified firms increased gender representation across teams by more than 10 percentage points after certification. It also found higher ethnic representation across teams, including a doubling of Black representation at senior levels.
These findings come alongside broader shifts in the UK venture market. Women on UK venture capital investment teams rose from 18% in 2017 to 31% in 2025, while the share of UK firms with no women on investment teams fell from 48% to 21%.
Structured processes
Diversity VC said the strongest evidence of change came from firms that adopted structured processes rather than relying on informal commitments. It argues that diversity work in venture capital has moved from the margins towards the mainstream of how some funds are organised and assessed.
The review also points to the role of investors and public bodies in driving those changes. It cites activity by institutional backers, including the British Business Bank and UK Private Capital, as evidence that inclusion is becoming part of fund selection, research and market practice.
Programme impact
One section focuses on Future VC, a programme designed to widen routes into the sector. According to Diversity VC, 97% of Future VC alumni are now in full-time venture capital or wider investment ecosystem roles.
The organisation has also expanded its own output during the period covered by the report. Since launch, it has run 447 workshops and published 19 reports and six toolkits, alongside programmes including Future VC, the Career Development Program, the Diversity VC Standard and the Diversity Data Alliance.
Long cycle
Meghan Stevenson Krausz, Chief Executive Officer, Diversity VC, said, “Over the past decade, there has been measurable progress in how venture capital understands and approaches diversity. Representation has improved, awareness has grown, and expectations have shifted. And yet, when viewed through the most visible metrics, progress can still appear slow and uneven. It would be easy to read this as a lack of change. But that interpretation misses what is actually happening beneath the surface.
Part of this disconnect comes from the nature of venture capital itself as a long-cycle asset class. The outcomes we most often measure – who gets funded, who holds power – are, by definition, lagging indicators that reflect decisions made years earlier. They tell us where the system has been, not where it is going.
Over the past decade, Diversity VC and Extend Ventures focused on something different: not just measuring outcomes, but changing the conditions that produce them. Many diversity efforts begin with culture, with a shared belief that things should be fairer, more inclusive and more representative. But without structure, culture remains fragile.
Funds that adopt structured frameworks like The Standard are moving faster than their peers. Limited partners and development finance institutions are beginning to embed diversity into capital allocation decisions. Policymakers are shifting from aspiration to transparency. And for the first time, there are credible pathways into venture capital for people who would previously never have seen the industry as accessible. These are signals that the system is beginning to shift. If the first decade of this work was about making the invisible visible, the next will be about making change unavoidable.”
Next steps
The report argues that venture capital should apply diversification principles to the people making investment decisions, not just to sectors, stages and geographies in portfolios. It says narrow networks and shared backgrounds can shape pattern recognition in early-stage investing and cause firms to miss investment opportunities.
The same argument extends to limited partners, which decide which funds to back and which managers build track records. Progress will remain uneven unless diversity and inclusion are treated as a core part of how those investors assess funds, the report argues.
Diversity VC also calls for more formal policies within firms. It says diversity should be built into hiring, investment decision-making, portfolio support and performance tracking, rather than treated as a separate initiative.
The report sets out a series of measures it says are already established elsewhere in financial services. These include equalised parental leave, continued pension contributions and carried interest vesting during leave, flexible working arrangements, broader hiring pipelines beyond investment banking, and development programmes for mid-level talent from underrepresented backgrounds.
Its central argument is that venture capital has become better at gathering diversity data, but weaker at acting on it. The next phase, it says, should focus on using those figures to shape how firms are built and how careers progress within them.
More than three-quarters of respondents in a recent survey said Diversity VC had contributed significantly or moderately to making the venture ecosystem more inclusive, according to the report.
Business & Technology
Shirtless intruder wakes couple in Travelodge hotel room
Kim Hutchison, 60, and Harry Grieve, 57, were staying in a Travelodge in Dundee when the early morning incident happened last month.
Ms Hutchison said she was “petrified” before the man – wearing just shorts – left after about a minute of arguing over who was actually in the wrong room.
READ MORE: MP meets Travelodge bosses following room key assault case
Travelodge, which has headquarters in Thame, apologised to the couple and said room access security policies were not correctly followed.
Earlier this year, a man was jailed for sexually assaulting a woman in her hotel bed after Travelodge staff gave him a key card and her room number.
Kyran Smith had gone to the reception of the Maidenhead branch of the hotel chain in the early hours in December 2022 and said he was the woman’s boyfriend.
He was jailed for seven-and-a-half years following the assault.
The chain’s chief executive Jo Boydell apologised to the victim and said changes would ensure additional or replacement keys were only issued with permission from the person staying in the room.
In the latest incident, Ms Hutchison and Mr Grieve had been visiting relatives in Dundee and had gone to bed at the Strathmore Avenue branch of Travelodge, before they were disturbed at 2am on July 11.
“I just woke up, I had heard the door click, and sat up in bed,” Hutchison told the BBC.
“Here was a guy at the bottom of the bed, just standing with shorts on. He had something in his hand which I took to be the key card for the room.”
It is understood that the man had made a mistake regarding the room number, believing he was in room 316 not 313.
Mr Grieve, who works in Aberdeenshire, got dressed and went down to reception to try to find out what had happened and “get some answers” about why a stranger had been able to get into their room.
Following their complaint, the couple were given a room refund, as well as a £100 Travelodge voucher – which Mr Grieve said he doubted they would use.
The couple decided to publicise their case after becoming aware of the Maidenhead assault.
In April, Freddie van Mierlo, Liberal Democrat MP for Henley and Thame, met the senior leadership team at Travelodge’s headquarters in Thame to discuss guest and employee safety following serious concerns about hotel room security.
Henley and Thame MP Frieddie van Mierlo (Image: Contributed)
Travelodge said it was “very sorry” for what had happened, and that customer safety and security was a priority.
“Any case of an unauthorised person entering a guest’s room is a significant cause for concern and we want to be clear that this should not have happened,” a statement said.
“Our updated room access security policies were not correctly followed in this instance, which is not acceptable.
“We have retrained the team at our Dundee Strathmore Avenue hotel on our updated room security and check-in procedures, and would like to apologise again to Mr Grieve and Ms Hutchison for their experience with us.”
The previously-announced Travelodge safety review remains ongoing.
Business & Technology
Orbital Industries signs BASF deal to speed research
JOSEPH GABRIEL LAGONSIN
News Editor
Orbital Industries has signed an agreement with BASF Environmental Catalyst and Metal Solutions to license its CurieOS materials discovery platform, bringing the software into catalyst research for automotive emissions applications.
BASF’s Environmental Catalyst and Metal Solutions unit, known as ECMS, supplies aftertreatment systems and catalytic products to the automotive market. Under the agreement, the division will use CurieOS in its catalyst research and development work.
The deal expands Orbital Industries beyond its existing work in data centres, where it has used the same platform to develop a PFAS-free cooling material for its Orbital IT brand. CurieOS is designed to help researchers identify promising materials before producing laboratory samples.
Materials discovery in industrial settings often involves long testing cycles, as candidate substances must be synthesised, characterised and assessed under operating conditions. CurieOS is intended to shorten that process by combining literature review, data analysis and simulation in a single scientist-directed workflow.
At the centre of CurieOS is Orb, the company’s atomistic simulation model. Orbital Industries says the model can predict the properties of new materials and give researchers what it describes as a virtual laboratory for evaluating candidates computationally before committing to physical testing.
Orb can simulate 100,000 atoms on a single graphics processing unit, according to Orbital Industries, which also says the model runs faster than competing systems from large technology groups and academic teams. It cited independent benchmark results in support of those claims.
Automotive pressure
The BASF unit is entering the agreement as carmakers and suppliers face continued pressure to adapt emissions technologies to tighter regulation, changing powertrain designs, alternative fuels and cost constraints. Those factors have kept catalyst development a priority across the automotive supply chain.
Saeed Alerasool, Senior Vice President and Chief Technology Officer for ECMS at BASF, said this backdrop had made faster development more important.
“The agreement comes at a critical time for the automotive sector. The development of mobile emissions catalyst technologies continues to be driven by tightening emissions regulations, evolving powertrain technologies and alternative fuels, as well as growing cost pressure. At BASF ECMS, we continuously explore new approaches to accelerate development and further improve R&D and application efficiency. Through this agreement, we look forward to leveraging emerging AI technologies to enhance our ability to deliver leading solutions and help address evolving customer and market needs,” Alerasool said.
Research tool
Orbital Industries describes CurieOS as an AI research system that can follow goal-based instructions from scientists across several steps, including reviewing published work, analysing experimental results and running simulations to generate new hypotheses. It says this approach can reduce the number of physical experiments needed in the earliest stages of a programme.
That matters in catalysis because the field involves interactions at material surfaces that can be difficult to model accurately with lower-cost methods. Larger, more detailed simulations can help researchers narrow which candidates should move to laboratory testing.
James Gin-Pollock, Chief Technology Officer at Orbital Industries, said the technical demands of catalyst work made it a useful proving ground for the software.
“Catalysis is a brutal test for any simulation model – you’re dealing with complex surfaces, large systems, and subtle interactions that cheaper methods miss. Orb was built for exactly this: it can simulate systems of a scale and complexity that were previously out of reach, fast enough that scientists can actually iterate. That’s what makes it valuable for real industrial workflows rather than just a research demo,” Gin-Pollock said.
Jonathan Godwin, Chief Executive Officer of Orbital Industries, said the BASF agreement was a practical application of the company’s work in industrial materials development.
“The hardest part of materials discovery is knowing where to look. CurieOS gives scientists a way to explore and test ideas computationally before committing time in the lab, which means more of their effort goes into the candidates that matter. ECMS hosts exactly the kind of demanding, real-world materials development we built this for,” Godwin said.
The agreement places Orbital Industries in a segment of the industrial software market where chemical and materials companies are increasingly testing artificial intelligence tools against established laboratory processes. For BASF ECMS, the immediate use case is catalyst development for emissions systems, an area where small gains in material performance can carry commercial and regulatory significance.
Business & Technology
Why some tax transformation projects succeed while others struggle
RUSSELL GAMMON
Chief Innovation Officer
Alphatax
As professionals across the industry will be all too aware, the tax function is experiencing one of the most significant periods of change seen for many years. Whether the priority is to address broader reporting and compliance obligations or respond to more demanding business expectations, teams are under significant pressure.
To deal with these challenges, many organisations have turned to digital transformation, with an increasing number accelerating their move to cloud-based technology to modernise legacy systems and automate manual processes. Progress, however, is far from consistent, with some tax teams moving extremely quickly while others continue to rely on desktop software, manual methods and spreadsheet-based workflows. Indeed, organisations operating in similar markets often achieve very different outcomes.
So what’s happening, and why are some making rapid progress while others continue to struggle? At the heart of the matter is digital maturity, or in other words, how well an organisation uses digital capabilities to achieve its strategic goals.
Organisations that can be categorised as having higher digital maturity already have the foundations needed to modernise successfully. They typically have connected systems, robust data governance, standardised processes and infrastructure that can support modern applications, whether deployed in the cloud or on-premise. In these environments, introducing new tax technology becomes an extension of existing capabilities rather than a wholesale overhaul. By contrast, organisations with lower digital maturity often find that new platforms expose existing weaknesses rather than resolving them, limiting the value they ultimately deliver.
This explains why organisations investing in similar technologies can experience very different outcomes. One may accelerate transformation, while another struggles to realise the benefits it is hoping for.
Getting the foundations right
The challenge rarely lies just with the software itself. The bigger obstacle is the environment in which it has to operate. For example, moving tax applications into the cloud does not automatically solve fragmented data. If tax information originates from multiple business systems and is inconsistent or difficult to access, cloud implementations simply expose those issues more quickly.
Then there are the challenges associated with data quality, which should be addressed before implementation begins rather than treated as something that can be corrected after the fact. The objective should be that changes made in one area flow consistently across the overall tax function, minimising the need for manual intervention and improving confidence in the information used. This also means that tax teams spend less time resolving data issues and more time focusing on higher-value activities.
Many transformation projects fail because organisations concentrate on selecting technology before understanding the processes it needs to support. The approach taken to data, for example, is key and strongly indicative of whether a transformation strategy is set up to succeed. In practical terms, organisations with higher digital maturity can work from a shared data foundation rather than maintaining multiple versions of the same information across different processes.
Existing processes also play a major role. If workflows are inefficient or poorly defined (even if they have been considered fit for purpose for many years), digital transformation rarely produces the desired improvements. Success also depends on the wider organisation being ready to support new ways of working, rather than viewing implementation as simply replacing one software platform or legacy process with something new.
Reaping the benefits
Building digital maturity allows organisations to move away from the tendency many have to adopt disconnected point solutions towards a more integrated tax operating model.
Consistency also makes it easier to identify issues or errors earlier in the process, when they are generally quicker and less costly to resolve. The cumulative effect is greater control, rather than simply a faster way of completing existing tasks.
The underlying point is that digital maturity should not be viewed as a destination that organisations eventually reach. It is an ongoing capability that becomes increasingly valuable as processes need to change or there are new opportunities for improvement.
This is crucial because future tax obligations, from reporting to compliance and everything in between, are becoming even more demanding, making it more important than ever to build an operating model that can adapt without requiring fundamental redesign every time priorities change. Organisations that continue investing in those underlying capabilities will be better placed to take advantage of future technologies because the conditions needed to support them already exist.
Ultimately, successful modernisation is about more than adopting cloud technology. Organisations that invest in the right digital foundations will be far better positioned to realise the full value of cloud and take advantage of future innovations, including AI, as the demands on the tax function continue to evolve.
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