A new report shows a decline in venture capital for women-led startups, but highlights that women are securing more investments in the DeepTech sector. The report was presented by the European venture platform, Female Foundry, in London.
Overall, the venture capital allocated to women-led startups in Europe decreased by 12% in 2024, which is similar to the 11% decline in overall venture capital. However, an interesting point is that women have raised more capital in DeepTech, a sector driven by scientific and technological innovations and closely linked with academia, where women are better represented.
The report reveals that approximately 33% of the capital invested in DeepTech goes to startups founded by women, which is 2% more than the gender-neutral startups in the same sector. Key DeepTech areas highlighted include synthetic biology, generative AI, and drug development.
Increase in Women Founders
The report surveyed over 1,200 women entrepreneurs, investors, and executives, along with more than 35 private equity firms and venture associations. It showed that women-led startups were considered with a broader sample, as Female Foundry included startups with at least one female founder, unlike other reports that only considered startups with all-female founding teams. This approach provides more comprehensive and inclusive statistics.
Raising the Number of Women Founders and the Challenges
According to the report, in 2024, startups with all-female founding teams raised only 2.2% of the venture capital. Although this is still a small figure, the figures in DeepTech are more promising. Agata Nowicka, the founder of Female Foundry and the report's author, emphasizes that this 2% figure is too narrow, and broader statistics should be considered. She also notes that women transitioning from academia to entrepreneurship face challenges: "Women in academia still face difficulties when moving into entrepreneurship."
COVID-19 and New Opportunities for Women
Nowicka also points out that the COVID-19 pandemic created more equal opportunities for women in the tech sector. The pandemic led to the expansion of the technology industry and the emergence of numerous startups, which allowed women to attract more funding. She recalls the situation in 2016, when many venture capitalists didn’t even have websites, and events were often held privately. However, due to the impact of COVID-19, there was a significant shift in the venture capital sector, making it easier for women to enter.
Interesting Facts from the Report:
Women-led startups raised €5.76 billion in venture capital in Europe in 2024, a 12% decrease compared to €6.56 billion in 2023.
Health, fintech, and food sectors are the top areas where women-led startups are attracting the most investment.
Seed stage is where women founders have the most success, with an average 7% increase in raised funds compared to 2023.
Over 80% of the largest 50 funding rounds raised by women founders in 2024 were in sectors such as synthetic biology (€282.4 million), generative AI (€221.8 million), and drug development (€169.9 million).
The UK, France, and Germany are the leading countries investing in women-led startups, while Finland and Denmark have the highest proportion of venture capital allocated to women-led startups.
This report demonstrates that women need more support to achieve greater success in entrepreneurship and reveals that women are increasingly securing a place in the DeepTech sector.
