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The 2023 European All In: Female Founders in the VC Ecosystem report sheds light on the ongoing gender imbalance in venture capital (VC) funding across Europe. Female-founded startups are making strides, but the funding gap remains wide compared to male-founded companies. Between 2016 and 2021, female-founded companies only broke the €1 billion threshold once, in contrast to male-founded startups regularly exceeding €10 billion annually.
A major factor contributing to the gender disparity in VC funding is the underrepresentation of women at the decision-making level. According to the report, only 15.2% of general partners in large VC firms are women, a statistic that underscores the need for more female leadership in the industry. The lack of diversity among decision-makers creates barriers for female founders seeking funding, as male-led firms tend to fund businesses within their existing networks, perpetuating a cycle of underfunding for women.
One encouraging trend from the report is the growth in female angel investors and early-stage funding for women-led companies. Pre-money valuations for female-founded companies saw a powerful 11.2% growth in 2023, outperforming the 2.3% growth rate for the broader market. This is an encouraging sign that female entrepreneurs are gaining recognition in the early stages of funding rounds.
Despite the ongoing challenges, there are positive trends. Sectors like health tech, education, and clean energy—where female founders are often at the forefront—are gaining traction. Additionally, the report notes an increase in female angel investors, who are playing a critical role in supporting female founders at the early stages of their ventures.
The report underscores the need for more inclusive funding policies and greater representation of women at the decision-making level within VC firms. With targeted efforts, the gap can close, unlocking the full potential of female entrepreneurs in Europe.
For more insights, explore the full report.