More than a third of the fastest growing tech companies in the UK have no women on their boards. This is according to a new study that reveals a striking gap between rhetoric and reality when it comes to diversity in the UK tech sector.
The report by global growth consultancy Think & Grow found that women occupy just 18% of board roles in the UK’s leading tech scale-ups, while 36% of these companies have no female board members at all.
This is despite the fact that an overwhelming 94% of board members and key decision makers say they believe a diverse board is essential to success.
The results show a clear discrepancy between the industry’s stated commitment to inclusion and its implementation in practice. Data published in Think & Grow’s latest study, “Breaking and Remaking the Next Generation of High-impact Boards,” suggests that diversity is not yet a priority in the boardrooms of many fast-growing tech companies.
In comparison, listed technology companies are doing much better: in the FTSE 350 technology companies, 41% of board members are now women, more than twice as many as at scale-ups. This improvement is partly due to the Financial Conduct Authority’s diversity and inclusion rules, which require at least 40% female representation on boards.
The contrast highlights the importance of regulatory frameworks in driving change and the need for scaleups – regardless of such requirements – to proactively embed diversity into their governance models.
The underrepresentation extends beyond the boardroom table. Only 12% of the fastest growing tech companies in the UK are led by a female CEO or founder, and the same proportion have a female chairman.
While these figures reflect the FTSE 350 technology sector, larger listed companies are significantly more likely to employ women in other senior roles such as Chief Operating Officer, Chief Financial Officer or Senior Independent Director. In the FTSE 350 technology sector, 28% of senior roles are held by women and 80% of companies have appointed at least one woman to a senior role.
The Think & Grow report also makes a connection between diversity and commercial outcomes. More than a third (35%) of senior decision makers believe diverse boards improve customer representation, while others cite improved problem solving and better identification of blind spots.
Notably, companies with an annual turnover of more than £50m have 22% female board representation, compared to 15% for smaller peers – suggesting that a more balanced gender ratio could be associated with stronger performance and maturity.
A similar pattern can be seen among listed companies, with companies with a turnover of more than £500 million reporting 42% female board representation, compared to 37% for smaller companies.
Despite the sobering statistics, there are early signs of improvement. Start-ups founded in the last five years have an average of 25% women on the board – more than twice as many as older companies. Nearly all board members surveyed (93%) agree that progress has been made in gender diversity in recent years, indicating cultural momentum in the next generation of tech companies.
Jonathan Jeffries, CEO and co-founder of Think & Grow, emphasized that diversity is not just a moral imperative but a business advantage: “There is a clear link between diverse boards and strong business performance – but many UK tech companies are failing to appoint board members with diverse backgrounds and expertise, which could be holding back growth.”
“Promoting diversity is not just a social responsibility, but a strategic advantage. Founders who prioritize inclusion from day one build boards that solve problems faster, think outside the box, and understand a broader range of markets and people.”
Founded over 16 years ago, Think & Grow has advised some of the world’s most innovative technology companies – including Stripe, Square, Dropbox, Peloton and Etsy – helping them overcome the challenges of scaling in competitive global markets.
