A Funding Overview
According to Pitchbook’s report, women-led startups in Europe secured approximately $10.8 billion in funding in 2024, up from $10.6 billion in 2023. However, despite this progress, these startups accounted for only 20.6% of the total venture capital (VC) investment, underscoring a significant gender disparity in tech funding. While the rise in funding marks a step forward, achieving equitable investment for women-led startups remains a challenge. This highlights the pressing need to cultivate a more inclusive and balanced tech ecosystem across Europe.
Investment Trends for Women-Led Startups in Europe
In 2024, women-led startups received just over 20% of total venture capital (VC) funding, but there was a drop in the number of deals involving female founders. These startups made up 24.7% of all funding rounds—a 1.4% decrease compared to 2023.
The gap becomes wider for startups with only female founders. They raised around $861 million (€814 million) in 396 rounds, while all-male teams raised about $40.6 billion (€38.3 billion) in 5,830 rounds.
The Pitchbook report also highlights that early-stage funding is especially tough for female founders. Investors tend to take fewer risks on them, and they face bigger drops in valuation. Despite some growth since 2014, women-led startups are still undervalued compared to others.
The gender gap isn’t just in startup funding—it’s also seen in venture capital (VC) firms. Only 15% of General Partner (GP) roles in European VC firms managing over $53 million (€50 million) are held by women.
In fields like media, AI, and hardware, women make up just 8% of leadership roles. They do better in biotech and health sectors, where nearly 15% of General Partners are women. Still, the lack of women in VC firms is a major barrier to increasing investments in women-led startups.
Building a More Inclusive Ecosystem
Since 2014, funding for women-led startups in Europe has improved slowly. To create a fairer startup environment, investors need to overcome biases and adopt inclusive practices. It’s also important to have more women in VC firms to support women-led startups.
Women-led startups need time to rebuild market trust and overcome gender biases in the sector. Achieving true equity demands consistent efforts from investors and institutions to create a safe and encouraging environment for such startups.
The future of women-led startups in Europe depends on breaking down barriers in the tech industry. The critical question remains: will the tech investment community confront its biases, or will women in the tech sector continue to face challenges hindering their growth?
