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More funding needed for women-led AI start-ups, says report
Female-led companies account for only four per cent of the total number of start-ups in the AI software sector
Female-led AI start-ups are being left behind when it comes to investment capital despite an influx of finance, new research has shown.
A new paper, published by The Alan Turing Institute, found that the gender gap in the AI software sector is particularly stark with only 0.7 per cent (£72.9m) of the total capital invested since 2010 (£10.5bn) going towards female-led startups.
The research said female-led companies account for only four per cent of the total number of start-ups in this sector, compared to all-male founding teams which make up 78 per cent, raising nearly 77 per cent of the total capital invested.
Professor Judy Wajcman, lead author of the report said: “The lack of diversity in the VC ecosystem sells both women and the economy short”.
The researchers recommended that investors ringfenced investment capital for women and underrepresented entrepreneurs working in AI to improve funding for women-led AI startups in the UK.
They also said that it should be mandatory for investors to collect and report their diversity data, especially when investing in new technology. This could involve enforcing VC firms to sign up to the Investing in Women Code, where signatories are obliged to do this.
Dr Erin Young, report author and research fellow at The Alan Turing Institute, said: “We’re concerned that women-led start-ups are being left behind, and it’s particularly worrying in large sectors with high investment and little gender diversity like AI software.
“This sector is booming, experiencing enormous investment but almost all of the capital invested is being awarded to businesses founded only by men. Policy reform must focus on the inclusion of women and under-represented groups in this space to have tangible impact on equity and innovation.”
The researchers said that inclusion should be embedded into everyday culture and practice across the whole AI ecosystem. For some companies, they said, this could mean incorporating inclusionary practices in their environmental, social and governance performance (ESG) goals – a non-financial measure of the success of a business.
They also recommended that the government and other funding bodies fostered a culture of co-investment and set up mentoring communities and syndicates for women in tech, including providing education and mentorship on investing in AI to increase the networking opportunities for these groups.
While the number of female-founded companies created in 2022 was double that of 2018, the percentage of companies barely changed over that period with around 11 per cent of start-ups with at least one female founder receiving funding.
This analysis builds on previous work done by this research team which showed that female-founded companies account for under three per cent of VC funding deals involving AI start-ups.
Professor Helen Margetts, director of the public policy programme at The Alan Turing Institute, said: “The lack of gender diversity in technology, and specifically in AI, constrains the wide variety of perspectives needed to encourage innovation.
“This important research shows there’s a lot of work to be done but prioritising gender diversity is crucial to ensure we have a well-rounded and versatile economy.”
Diagnosis
Lung cancer drug shows breast cancer potential
Ovarian cancer cells quickly activate survival responses after PARP inhibitor treatment, and a lung cancer drug could help block this, research suggests.
PARP inhibitors are a common treatment for ovarian cancer, particularly in tumours with faulty DNA repair. They stop cancer cells fixing DNA damage, which leads to cell death, but many tumours later stop responding.
Researchers identified a way cancer cells may survive PARP inhibitor treatment from the outset, pointing to a potential way to block that response. A Mayo Clinic team found ovarian cancer cells rapidly switch on a pro-survival programme after exposure to PARP inhibitors. A key driver is FRA1, a transcription factor (a protein that turns genes on and off) that helps cancer cells adapt and avoid death.
The team then tested whether brigatinib, a drug approved for certain lung cancers, could block this response and boost the effect of PARP inhibitors. Brigatinib was chosen because it inhibits multiple signalling pathways involved in cancer cell survival.
In laboratory studies, combining brigatinib with a PARP inhibitor was more effective than either treatment alone. Notably, the effect was seen in cancer cells but not normal cells, suggesting a more targeted approach.
Brigatinib also appeared to act in an unexpected way. Rather than working through the usual DNA repair routes, it shut down two signalling molecules, FAK and EPHA2, that aggressive ovarian cancer cells rely on. FAK and EPHA2 are proteins that relay survival signals inside cells. Blocking both at once weakened the cells’ ability to adapt and resist treatment, making them more vulnerable to PARP inhibitors.
Tumours with higher levels of FAK and EPHA2 responded better to the drug combination. Other data link high levels of these molecules to more aggressive disease, pointing to potential benefit in harder-to-treat cases.
Arun Kanakkanthara, an oncology investigator at Mayo Clinic and a senior author of the study, said: “This work shows that drug resistance does not always emerge slowly over time; cancer cells can activate survival programmes very early after treatment begins.”
John Weroha, a medical oncologist at Mayo Clinic and a senior author of the study, said: “From a clinical perspective, resistance remains one of the biggest challenges in treating ovarian cancer. By combining mechanistic insights from Dr Kanakkanthara’s laboratory with my clinical experience, this preclinical work supports the strategy of targeting resistance early, before it has a chance to take hold. This strategy could improve patient outcomes.”
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