Startup London Together

In support of the London Mayor’s campaign to promote diversity in London and to encourage international investment to the capital - #LondonIsOpen - our team of in-house data scientists analysed open data sets, looking into the affect leadership diversity has on the level of investment a company receives. The study found that businesses with similar size boards (three-four directors) received almost four times more funding when they had two or more non-UK nationalities on the board (£13.8m) as opposed to UK-only directors (£3.5m) – providing a convincing argument in favour of diversity.

In this study, our team of data scientists used an open data set of companies from CrunchBase. All companies in London that were started after 2004 and had the data fields needed for this study (geo-tagging, number of jobs, funding) filled in were used – giving a set of 1100 companies. Our team supplemented this data with nationalities of directors’ data from Companies House, the UK companies’ registrar. This is the first time these data sets have ever been correlated in this way. This data was then cleaned and nationalities labelled as UK and non-UK.

Our team have created a visualisation, so you can dive deeper into the data. The overall number of companies in London that have only UK directors is higher, however when you compare who received the most funding, proportionately 80% of businesses with high diversity in their team of directors received large funding rounds, compared to 48% of those with low diversity.

There are many options to navigate this map. The filters on the right side provide the choice to select on the sector industries, the size of the company, the funding collected, and the diversity of the directors. This information can be seen evolving in time from 2004 until 2014 as you scroll in the slider below the map. When you click on the icons, you can see information describing the companies.