Summary:
12% decline in venture investment for women-founded startups in 2024, mirroring an 11% overall decrease.
Deep tech startups led by women are raising more capital than men, with 33% of venture capital in this sector.
Survey of 1,200 female founders reveals a broader definition of female-founded startups, impacting funding statistics.
Women-led startups received only 2.2% of total venture capital in 2024.
The U.K., France, and Germany lead in investments for female-founded companies.
Overview of the Funding Landscape
Venture investment in startups run by women has historically lagged behind the overall market. In 2024, funding for women-founded startups in Europe saw a 12% decline, closely mirroring the 11% decrease in overall venture investment. This trend raises concerns about the future of female founders amidst wider cutbacks in diversity, equity, and inclusion efforts.
Key Findings from the Female Innovation Index 2025
According to the Female Foundry report, while the overall funding landscape appears grim, there are some positive developments:
- Deep Tech Dominance: Women-founded deep tech startups are raising more capital than their male counterparts. Approximately 33% of all venture capital raised by female entrepreneurs is directed towards deep tech, surpassing gender-agnostic startups by 2%. Key areas of innovation include synthetic biology, generative AI, and drug development.
- Survey Insights: The report surveyed over 1,200 female founders, investors, and executives across 20 European countries. Notably, the definition of female-founded startups included those with at least one female co-founder, expanding the scope of the findings.
Challenges and Opportunities
Despite the positive data regarding deep tech, the overall picture remains challenging:
- Funding Disparity: Women-led startups raised only 2.2% of the total venture capital allocated for 2024.
- Encouragement Needed: Agata Nowicka, founder of Female Foundry, emphasizes the importance of encouraging women in academia to pursue entrepreneurship. She noted that the COVID-19 pandemic has somewhat leveled the playing field, making the venture capital industry more accessible.
Noteworthy Statistics
Here are some striking statistics from the report:
- Female-founded businesses in Europe raised €5.76 billion in 2024, down from €6.56 billion in 2023.
- The health, fintech, and food sectors attracted the most investment for female-founded startups.
- Female founders experienced the most success in the seed stage, with round sizes increasing by 7% compared to 2023.
- Over 80% of the largest funding rounds for female-founded startups were allocated to those with scientific backgrounds.
- The U.K., France, and Germany lead in investment for female-founded companies, while Finland and Denmark allocate the highest proportion of venture capital to these startups.
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