01. Enter The market reset European economies are gradually recovering from the Covid-19 pandemic and the heightened cost of living resulting from Russia’s invasion of Ukraine. The pace of economic recovery varies between countries, with service-oriented economies recovering faster and manufacturing-oriented economies experiencing a slower recovery. Despite a gradual decline in inflation, most countries are yet to meet their inflation targets.

Shaping the Future of European Venture 6 mins From the Creators

Shaping the Future of European Venture 6 mins From the Creators

01. Enter The market reset European economies are gradually recovering from the Covid-19 pandemic and the heightened cost of living resulting from Russia’s invasion of Ukraine. The pace of economic recovery varies between countries, with service-oriented economies recovering faster and manufacturing-oriented economies experiencing a slower recovery. Despite a gradual decline in inflation, most countries are yet to meet their inflation targets.

We believe that data is a powerful catalyst for innovation. We have analysed the funnel of female entrepreneurship and the investment landscape in the European ecosystem to provide the most accurate and vivid picture of the investment opportunities to back female entrepreneurs and investors in Europe. Welcome to the Female Foundry State of Gender Diversity in European Venture report The most comprehensive analysis of the funnel of female innovation in Europe 645,375 European companies analysed 1,168 Founders and investors answered our survey Start the journey AS COVERED IN 70 Founders, investors and ecosystem players interviewed The Community By founders and investors for the entire venture ecosystem The essence of our report extends far beyond the realm of data and statistics.The report is a reflection of personal stories, achievements and a celebration of the vibrant community of European innovators, trailblazers and thinkers. Meet the Launch Event Speakers Watch the Launch Replay The Report Despite the challenging times, female founders and investors in Europe continue to innovate The essence of our report extends far beyond the realm of data and statistics.The report is a reflection of personal stories, achievements and a celebration of the vibrant community of European innovators, trailblazers and thinkers. Our Sponsors Get to know our Sponsors & Partners The State of Gender Diversity in European Venture report would have not been possible without the great support from all our sponsors and partners. The Community Supported by industry leaders Our Partners of all venture activity in Europe 96% 18 countries representing approx. The Reach Detailed analysis of major European venture hubs It has taken significant effort to depict the European venture ecosystem, not only at the Pan-European level but also on a country-by-country basis. Throughout the report, you will find country-focused data and country-specific statistics in the 'Location in Focus' chapter. Lisa Gradow Claire Murray Bao-Y Van Cong Sarah Werner Mirjam Staub-Bisang Rob Moffat Jérôme Wittamer Daniela Sjunnesson Marion Verles Felicia Mundhenke Apostolos Apostolakis Judith Data Oana Jinga Marta Palmeiro Dr Elena Gross Start the journey 0 From Female Foundry Learn about the people and the mission behind the report, its sponsors and partners before diving into the numbers. Explore the chapter

Fundraising of venture capital funds in Europe spend more time seeking investment opportunities into female-founded companies than 12 months ago. ​ 40% stateofgenderdiversity.com LinkedIn Copy link Like Download the Report Does gender of an investor matter to you? Female founders only Notes: 'Funded' founders are those who have raised any amount of funding. Source: ​ ​ LinkedIn Copy link Like Download the Report Associate, Earlybird Natalia Ahmadian Germany "I have definitely seen a positive impact of being part of a diverse investment team. This year, we seen a growing number of female founders proactively approaching us. Participating in events (both as an attendee and organizer) dedicated to female founders has been incredibly rewarding and led to very strong connections between founders and VCs. This also gave me the chance to leverage my network to encourage more female entrepreneurs to step forward, start their ventures, and connect with relevant stakeholders such as VCs and angels." 82% of female founders say that the gender composition of their boards matters to them Unlike the gender of investors, the gender composition of the board matters to female founders in Europe. In an overwhelming majority, 82%, female founders who participated in our survey stated that the gender composition of their boards is important to them. Does gender composition of your board matter to you? Female founders only of female founders say that gender composition of their board matter to them. 82% Notes: All female founders. Source: ​ ​ LinkedIn Copy link Like Download the Report VC investor, Molten Ventures Paul-Louis Lepine United Kingdom "The distinctive value added by women in board positions goes beyond diversity or the fostering of an inclusive company culture. Companies catering predominantly to female demographics, such as femtech, fashion, home & design, health & wellness, or groceries, should and are actively seeking female board members to leverage their insights and deeper understanding of the customer base." France has the highest number of new funds with at least one female general partner in 2023 Our analysis of funds with at least one female general partner reveals that France, the United Kingdom, and Germany have the highest number of funds with female General Partners. Geographical location of new funds with at least one female general partner, 2023 Tap on a bar to reveal the exact number Notes: Source: Dealroom LinkedIn Copy link Like Download the Report Geographical location of new funds with a female general partner over the years See how the number of new venture capital funds with at least one female general partner has been evolving over the past five years in the countries within our scope in Europe. New funds with a female general partner per country, 2019 to 2023 Tap on a bar to reveal the exact number Notes: Source: Dealroom LinkedIn Copy link Like Download the Report Associate, Eurazeo Carole du Fretay France "The diversity of individuals you engage with and the intellectual stimulation you experience daily make a VC role ideal for someone who is hyper-curious. For me, venture capital is synonymous with my passion. I enjoy talking with people who are driven by making changes in the world. In this role, it's of course essential to assess risks, yet equally important to dream and believe in opportunities, focusing on the upside rather than the downside! The human aspect and the necessity to trust your instincts add an extremely exciting dimension to the job, which I can genuinely enjoy." Over a third of principals and mid-level investors at European VC firms are women We wanted to find out how many female principals and mid-level investment positions there are in European VC firms to better understand what the gender representation looks like for positions just below the Partner level. We found that over a third of those positions are currently filled by women. Proportion of female principals and mid-level investors at European venture capital firms of principals in European venture capital firms are women. 34% Notes: Positions classified as 'principal' encompass vice-president and director levels. Funds with over $25m AUM, everywhere in Europe. Source: Female Foundry LinkedIn Copy link Like Download the Report 15 women were promoted to partner level in 2023 We have been monitoring the promotions of female venture capital investors in 2023. A total of fifteen female investors were promoted to partner level. female investors in the European VC firms were promoted to partner level in 2023. 15 Notes: Source: Female Foundry, Pitchbook, Dealroom LinkedIn Copy link Like Download the Report Up next 3 Environment Macroeconomic forces play a crucial role in shaping the venture capital landscape, influencing investment strategies and startup valuations. Factors such as inflation rates, interest rates, and economic growth patterns can significantly impact investor sentiment and the availability of capital. Learn how the macroeconomic forces have been shaping the venture capital ecosystem of today. Explore the chapter

3.2 Investment levels Adjusting to a new normal The venture capital industry experienced a further slowdown in 2023 following its peak years in 2020 and 2021. This deceleration has affected both sides of the venture capital ecosystem. On one side, venture capital firms have faced challenges in raising fresh capital, primarily due to macro factors such as a higher cost of capital and, consequently, a lower risk appetite among limited partners. On the other side, venture capital firms deployed less capital into European companies. Even though the numbers were lower throughout the year, there is hope for venture capital investments to pick up. The fourth quarter showed the most promising signs for funding. This suggests we might see an improvement of investment levels in the second and third quarters of 2024. Key insights European venture capital firms raised €17.1B in 2023. Despite a 38% drop from 2022, the amount raised is still the highest for venture capital funds in Europe in the last five years. ​ Venture capital firms across Europe deployed €53.2 billion of fresh capital into companies in 2023. This amount represents a 37% drop in total capital deployed compared to 2022 and a 48% decrease from the peak year of 2021. ​ Late-stage investment rounds and mega-rounds are those the most impacted by the investment slowdown. While overall investment levels in Europe fell in 2022 and 2023, the fall was largely driven by the drying up of late-stage mega rounds of €100M+. Earlier stage investment levels have remained more stable during this period. ​ European venture capital funds raised €17.1B in 2023 With high interest rates and alternative lower-risk investment options have become more attractive for limited partners, making fundraising for venture capital funds in Europe challenging. However, despite a 38% drop in funding levels from 2022, the total amount raised by European venture capital funds is still the highest in the last five years. Size of capital raised by European venture capital firms in 2023 Size of venture capital raised by European VC funds in 2023 €17.1B Source: Dealroom ​ LinkedIn Copy link Like Download the Report Total size of fresh capital raised by venture capital funds, 2019 to 2023 Tap on a bar to reveal the exact amount Notes: Whole of Europe. Source: Dealroom ​ LinkedIn Copy link Like Download the Report Founding Partner, Growth Capital Fabio Mondini de Focatiis Italy "Traditionally, a well-performing fund would have its next fund ready by the time its investment period expires. However, in 2023, we have seen a shift in this dynamic due to changes in the entire investment landscape. Many funds have faced difficulties in raising new capital, which has reduced the number of new funds more than the total amount of money available for investment. But while there's still a lot of dry powder in the market, the dynamics of how this capital is being allocated, and the types of funds receiving it, are changing. Over half of Limited Partners say they made fewer investments in the past 12 months In our survey, we wanted to assess the extent of the slowdown in capital deployment by asking limited partners about the current pace of their investment. We asked if they had noticed any changes in the rate of capital deployment over the past twelve months. The response was that 53% of the participating Limited Partners reported a decrease in their investments in 2023, with 47% making fewer and 6% making significantly fewer investments. Has there been any change in the number of investments made by your fund in the past 12 months? LP investors only Notes: Source: ​ ​ LinkedIn Copy link Like Download the Report Venture capital fundraising levels drop across Europe Venture capital fundraising levels have dropped in all but two European countries within the scope of this report - only Italy and Finland experienced a moderate increase in capital raised by venture capital firms. These statistics effectively demonstrate the broader impact of uncertain market conditions and the increased attractiveness of alternative investment options for limited partners. Total size of fresh capital raised by funds (€B) per country, 2019 to 2023 Tap on a bar to reveal the exact amount Notes: 18 countries in scope only. Source: Dealroom ​ ​ LinkedIn Copy link Like Download the Report Founding Partner, Cavalry Ventures Claude Ritter Germany "There's been a noticeable contraction in the venture capital this year, largely driven by factors like higher interest rates. Can we manage our liquidity? Can we predict our portfolio performance? I think the mindset of the investors this year has also been about understanding whether the management teams have the ability to predict future cash flows and liquidity events. If you can manage your cash flow efficiently, you can be extremely successful. It also has a significant impact on your profitability." The number of new European funds is also falling In 2023, there were 121 new venture capital funds raised in Europe. ​ Even though we might get a clearer picture of the total number of funds that raised in the coming months due to the reporting lag, we are expecting so see the totals for 2023 to be significantly lower than 2022. To put this in context, venture capital fundraising has been on a downward trend over the past three years: 208 new funds were raised in 2022, a 13% decrease from 2021, which saw 124 new European funds. Number of new European venture capital funds announced in 2023 121 Total number of new funds per country, 2019 to 2023 Tap on a bar to reveal the exact number Notes: 18 countries in scope only. Source: Dealroom ​ ​ LinkedIn Copy link Like Download the Report Total capital deployed by venture capital firms drops to €53.2B Venture capital firms across Europe deployed €53.2 billion of fresh capital into companies in 2023. This amount represents a 37% drop in total capital deployed compared to 2022 and a 48% decrease from the peak year of 2021. Total capital (€B) deployed by European venture capital firms, 2023 Capital deployed by European venture capital firms in 2023 €53.2 billion Total capital (€B) deployed by European venture capital firms, 2019 to 2023 Tap on a bar to reveal the exact amount Notes: Whole of Europe. Source: Dealroom LinkedIn Copy link Like Download the Report Head of Venture and Growth Banking, HSBC Innovation Banking Sonya Iovieno United Kingdom "In 2023, we have seen a growing consensus in the market that companies should demonstrate the ability to run profitably, not just focus on top-line growth. This shift towards profitability has led to more stable financial company profiles and has been, in general, positive for companies, providing them with more funding options, whether through equity or debt. Companies with stable profitability profiles but without an immediate need for an equity round are now more appealing to lenders. They are able to secure additional funding that allows them to extend their growth by another six to twelve months, and to increase their valuation." "No significant change in the pace of deployment over the past twelve months" - say venture capital firms In our survey, we wanted to see whether the macroeconomic climate has fundamentally impacted the pace of capital deployment by European venture capital firms over the past twelve months. While the majority of venture capital investors have seen no change, the trend suggests that some funds have been making fewer deals as a consequence of the wider market shift. Looking at the past 12 months, how does the number of all investments made by your fund compare to the number of investments made in the previous year? VC investors only Notes: Source: ​ ​ LinkedIn Copy link Like Download the Report Geographical distribution of venture capital investment across Europe Gain a clearer picture of how European venture capital funding has evolved over the last five years. Total capital (€B) invested by VC firms per country, Europe, 2019 to 2023 Tap on a country to reveal the exact amount Note: Whole of Europe. Source: Dealroom ​ LinkedIn Copy link Like Download the Report The UK, Sweden and Switzerland see the biggest drop in venture capital investments in Europe compared to 2022 Year-on-year European capital deployment data shows that the rate has slowed down considerably across the continent with the UK, Sweden, and Switzerland experiencing the largest year-on-year drops. Total capital (€B) invested by VC firms per country, 2019 to 2023 Tap on a bar to reveal the exact amount Notes: 18 countries in scope only. Source: Dealroom ​ ​ LinkedIn Copy link Like Download the Report Founding Partner, Expon Capital Jerome Wittamer Luxembourg "One of the key questions for this year has been how founders and startups are adapting to the changing landscape. First, the competition has been fierce, and the bar has been raised. Startups now need to demonstrate a higher level of traction than before, along with stronger unit economics and a compelling equity story. It's worth saying that the founders who were setting fundraising records in the past may not necessarily be the stars of tomorrow." The amount of capital deployed remained relatively constant throughout 2023 The distribution of capital deployed remained relatively constant throughout the year, with September witnessing the highest amount of capital deployed, most likely influenced by the cumulative effect of the summer break. Month-by-month analysis of capital invested (€B) in 2023 Tap on a bar to reveal the exact amount Notes: Whole of Europe. Source: Dealroom LinkedIn Copy link Like Download the Report Energy and health sectors received most funding in 2023 We examined various sectors to get a clearer picture of capital allocation among them in 2023. The energy sector emerged as the leader with almost 25% of the total capital deployed. Health captured 17% of all capital, transportation 15%, and fintech 13%. Total capital invested (€B) by sector, 2023 Tap on a bar to reveal the exact amount Notes: Source: Dealroom ​ ​ LinkedIn Copy link Like Download the Report Partner, Target Global Bao-Y Van Cong United Kingdom We have been seeing a significant paradigm shift in company profiles at point of their exit in 2023. Two years ago, even unprofitable companies could be acquired based solely on the promise of their future value. This landscape has shifted; now, only businesses with solid unit economics and a sustainable growth trajectory have the potential to be acquired or go public. Achieving sustainable growth has become the primary goal for founders today. I anticipate that 2024 will follow this trend. In the coming months, I expect we'll see a rise in profitable companies and resilient founders." The last quarter of 2023 saw a pick-up in capital deployment for most countries compared to the previous year When analysing the quarter-by-quarter change in venture capital deployed per European country, it's clear that the last quarter of the year witnessed the highest peak in capital invested compared with 2022, across the countries covered in this report. Trailing 12-month capital investment change (%) per country, per quarter, 2023 Tap on a bar to reveal the exact percentage change Notes: 18 countries in scope only. Source: Dealroom ​ ​ LinkedIn Copy link Like Download the Report Denmark is the only European country that saw total venture capital deployment increase in 2023 In 2023, all European countries except Denmark experienced a decrease in venture capital deployment. Despite the global slowdown, Denmark actually saw a 7% increase in capital deployed compared to the previous year. Among the countries with declines, Estonia faced the steepest year-on-year drop, with a 75% decline, followed by Portugal at 64%, Finland at 63%, and both Poland and Austria at 50%. Year-on-year change in capital invested (%) per country, 2019 to 2023 Tap on a bar to reveal the exact percentage change Notes: Source: Dealroom ​ ​ LinkedIn Copy link Like Download the Report Late-stage investment rounds and mega-rounds are those the most impacted by the deployment slowdown While overall European investment levels fell in 2022 and 2023, this fall was largely driven by the drying up of late-stage mega rounds of €100M+. Earlier stage investment levels have remained much more stable during this period. Capital invested (€B) per stage per quarter, 2019 to 2023 Tap on a bar to reveal the exact amount Notes: Whole of Europe. Source: Dealroom ​ ​ LinkedIn Copy link Like Download the Report Strong H2 fundraising for energy, wellness and sports Energy, transportation wellness, telecoms and sports companies had a particularly strong second half of 2023 in terms of raising venture capital, more than two thirds of their funding came in the third and the fourth quarter of the year. Capital invested (%) per sector, per quarter, 2023 Tap on a bar to reveal the exact percentage Notes: Source: Dealroom ​ ​ LinkedIn Copy link Like Download the Report Up next 4 Community Our report is not just about statistics and figures, it is a community. Connect with other founders, investors and the ecosystem players that are part of the community. Explore the chapter

From Female Foundry THE REPORT Despite the challenging macro fundraising climate, female entrepreneurs and emerging fund managers in Europe continue to build and innovate. A time of creativity and resilience. The 2024 Female Foundry State of Gender Diversity in European Venture Report clearly demonstrates not just the resilience of female entrepreneurs and investors, but also highlights the significance of the untapped potential for innovation driven by these women, which is crucial for Europe's future. ​ Challenging times serve as fertile ground for innovation, and so, it could not be a better time for investors to step up and meet the ambitions of female founders and fund managers who are at the forefront of new business creation in Europe. Agata Nowicka ​ Founder Female Foundry ​ Author of the State of Gender Diversity in European Venture report Meet the team behind the report Get to know the team behind the report who, over the past year, gathered data, brought to life never-before-seen insights, and engaged with the wider European venture ecosystem. Tap on a picture to learn more Agata Nowicka is a two-time entrepreneur, startup investor and mentor. She is particularly interested in businesses innovating in fintech and those leveraging data. Having been on both sides of the venture ecosystem, in 2020, Agata founded Female Foundry to support more female entrepreneurs innovating across Europe. Agata holds an MBA from INSEAD and Wharton Business School. Agata Nowicka Founder, Investor Female Foundry Louis is responsible for public policy-focussed research at Dealroom.co. As co-lead of the Intelligence Unit, Louis manages a team of ecosystem analysts, and coordinates research projects pertaining to startup ecosystems, job and value creation, DE&I, and benchmarking of the startup economy across Dealroom’s network of 100+ government partners globally. Louis Geoffroy-Terryn Ecosystems Research Lead, Dealroom Kaisa Snellman is an Associate Professor of Organisational Behaviour at INSEAD and the Academic Director of the INSEAD Gender Initiative. Her research focuses on gender and entrepreneurship. She earned PhD and MA degrees in Sociology from Stanford University, and she was a postdoctoral fellow at Harvard Kennedy School of Government. Kaisa Snellman Associate Professor, INSEAD Leila Baeriswyl is a startup founder and aspires to venture into the VC space. With a passion for innovation and a background in entrepreneurship, she brings a unique perspective to the table. Leila Baeriswyl Startup Founder, Analyst Aoife manages Ecosystem and Government partnerships at Dealroom.co, working with policymakers globally to measure and grow their local innovation ecosystem. Prior to Dealroom, Aoife worked at WeAreXena - building diverse tech teams for Europe’s leading startups and scaleups. Aoife Morrin Ecosystem Parterships, Dealroom Kamil Stronski is a Post-Doctoral Research Fellow at INSEAD. His research lies at the intersection of strategy and organizational theory. He received his Ph.D. in Strategy (summa cum laude) at ESMT Berlin. He also holds an M.A. and B.A. in Economics from the Warsaw School of Economics. Kamil Stronski Post-Doctoral Research Fellow, INSEAD Jacob Keer is a final year student at UCLA, Califronia, US. Having worked within data analysis statistical modeling throughout his work with the Labrynth project at UCLA, Jacob assisted with data research and the venture community management. Jacob Keer Research Analyst Apart from being a Global Director of Community at one of the major technology companies, Margaux Miller is also a a founding member of WomenTech Network, and the founder of the Start Canada Podcast and the Manitoba Women in Tech group. Margaux Miller Global Director of Community, Podcaster Fostering thriving venture ecosystem for female founders and investors in Europe. ​ ​ The future of European venture is here. About Female Foundry Entrepreneurs, investors and ecosystem players in Europe are part of our network 6,000 Visit Female Foundry Sign up to the Newsletter Weekly office hours Mentorship Weekly newsletter on the key news across the European Venture ecosystem Newsletter Partnerships with leading European players to deepen connections across the venture ecosystem Connections Bringing granular data on the state of ecosystem for female entrepreneurs and emerging fund managers in Europe Data This report would not have been possible without the support of our sponsors. We are very fortunate to be backed by some of the most innovative organisations in the world that share our view on the untapped potential of female entrepreneurship and investment. From Ashurst Visit Ashurst "We achieve what we measure and we need to measure what matters. If we want to achieve not just equality but also equity within the European venture ecosystem, we need access to the data to hold ourselves to account." Tara Waters, Partner & Chief Digital Officer Ashurst Ashurst is a leading international law firm with world class capability and a prestigious global client base. The firm's in-depth understanding of its clients and commitment to providing exceptional standards of service has seen it become a trusted adviser to local and global corporates, financial institutions and governments on all areas of commercial law. From Google Visit Google "Data is the cornerstone of innovation, but generative AI (genAI) is the catalyst that ignites it. With genAI, we can analyze vast data sets, uncover hidden patterns, and generate new ideas at an unprecedented scale. With the power of genAI we can ask bolder questions, explore uncharted territories, and create solutions that go beyond what we could have ever imagined." Adrian Poole, Director Digital Natives UKI, Google Cloud Google Cloud accelerates every organization’s ability to digitally transform its business and industry. Customers in over 200 countries and territories turn to Google Cloud as their trusted partner to solve their most critical business problems. From the London Stock Exchange Visit London Stock Exchange "Equity, diversity and inclusion should serve to provide an equal opportunity for everyone to thrive – and that should be no different in the way our capital markets and economy work than it is within any individual firm. This report showcases the contribution that female founders can make to the wider economy, and how important it is to back their businesses. Progress can only be achieved on the foundations of accurate data and an honest reckoning of where we are, and the steps required to ensure that female founders are provided the same level playing field to be able to access capital as their peers." Julia Hoggett, CEO London Stock Exchange London Stock Exchange operates at the heart of where ideas meet capital, connecting companies, countries and investors in the real world to make measurable and positive differences across the globe. From HSBC Innovation Banking Visit HSBC Innovation Banking "Objective data about the true state of the innovation economy is essential for driving change. It empowers the entire ecosystem to turn good intentions into lasting impact by revealing new opportunities to improve, innovate, and invest – and that benefits us all." Juliet Rogan, Managing Director HSBC Innovation Banking HSBC Innovation Banking provides commercial banking services, expertise and insights to the technology, life science and healthcare, private equity and venture capital industries. ​ From Accenture and FinTech Innovation Lab London Visit FinTech Innovation Lab London "Adopting a data-driven approach is key to evolving Europe's startup landscape, enhancing transparency and fostering innovation. By acknowledging the true state of gender diversity, the industry is both empowered and accountable to create meaningful change." Emma Kendrew, Lead for Accenture Technology in The UK and Ireland, Accenture Accenture is a leading global professional services company helping organisations build their digital core, optimise their operations, accelerate revenue growth and enhance consumer services. Part of Accenture, the FinTech Innovation Lab London is a pioneering accelerator programme that provides innovative startup fintech companies at various stages with the support of the world’s leading financial service firms. From our sponsors From Carta Visit Carta "Venture capital is an inherently opaque business. Without quality data on the demographic makeup of venture investors and the companies they serve, it's impossible to know if the startup ecosystem benefits everyone or just a select few. That's why it's crucial to increase the transparency around who gets venture funding. This push for transparency is even more important in a downturn like the one founders have experienced in 2023. What gets measured can get managed - and we all want to see startups be an engine for more inclusive growth." Peter Walker, Head of Insights, Carta Carta is an ownership and equity management platform. Associate sponsor It takes a village. Get to know our partners. The State of Gender Diversity in European Venture report would have not been possible without the great support from all our partners. The data, perspectives, and insights shared in this report are the collective effort of our partners, contributors, volunteers, and enthusiasts. It is thanks to their commitment and passion we are able to engage with innovators across Europe to deliver the most granular image of the investment opportunities into female founders and emerging fund managers. ​ Read on to learn about who has been with us on this journey. Data Partner Dealroom is a global company information database & research firm. Its software, database and bespoke research enable its clients to stay at the forefront of innovation, discover promising companies and identify strategic opportunities. Among its clients are world-leading strategy consulting firms, investment banks, multinationals, technology firms, venture capital & buyout firms and governments. Visit Dealroom Our data partnership with Dealroom, a true supporter of the European venture ecosystem has allowed us to gain insights from vast amounts of data. Media Partner Analysis Partner We are supported by the leading European ecosystem players Our report would not be possible without the support of the fantastic community partners across 18 European countries. Learn more about our partners Scroll through to learn more about the country-specific and Europe-wide ecosystem players that support our mission to bring transparency and data on female innovation in Europe. The Luxembourg Private Equity and Venture Capital Association Visit The Luxembourg Private Equity and Venture Capital Association (LPEA) is the representative body of private equity and venture capital professionals in Luxembourg. With 485 members, LPEA plays a leading role in the discussion and development of the investment framework and actively promotes the industry beyond the country’s borders. The Swiss Startup Association Visit The Swiss Startup Association is the umbrella association of the Swiss startups. It is the the voice of the Swiss Startups and improves the conditions for Swiss startups on a political and educational level and provides them with the necessary viability. The association provides a platform for networking, knowledge exchange, and actively engages in policy discussions to shape a favourable environment for startups. The Dutch Startup Association Visit Dutch Startup Association is the largest, independent representative for startups, scaleups and innovation in The Netherlands. We provide entrepreneurs with the network, knowledge, and expertise to produce real results, and we create toolkits, host and organise events, and much more - giving them all the support they need to reach their goals. The Finnish Venture Capital Association Visit The Finnish Venture Capital Association (FVCA) is the industry body and public policy advocate for the venture capital and private equity industry in Finland. Established to foster collaboration and growth within the investment community, FVCA serves as a catalyst for innovation, supporting startups and contributing to the evolution of Finland's entrepreneurial ecosystem. The Swiss Private Equity & Corporate Finance Association Visit The Swiss Private Equity & Corporate Finance Association (SECA) is the representative body for Switzerland‘s private equity, venture capital and corporate finance industries. SECA has the objective to promote private equity and corporate finance activities in Switzerland. The Swedish Venture Capital Association Visit SVCA is an independent, not-for-profit industry body for firms and individuals active in the Swedish private equity sector, and includes buyouts, venture capital, business angels, and business angel networks. The Association, which was founded in 1985, seeks to improve how the private equity market in Sweden functions and to increase knowledge and understanding of the private equity market among the general public. The German Private Equity and Venture Capital Association Visit The German Private Equity and Venture Capital Association, (BVKAP), serves as the representative voice for the private equity sector in Germany. Advocating before policymakers and media, it highlights the sector's significance in the German economy. With a commitment to continuous market monitoring and analysis, the association adapts to industry changes. SLUSH Visit Slush is a student-led non-profit aimed at creating the next generation of world-changing founders. Slush organises the world’s largest gathering of VC – delivering actionable company-building advice and bringing together the who’s who in startups at a live event in Helsinki. SPAINCAP Visit SPAINCAP is the association uniting Venture Capital & Private Equity entities in Spain, including investors like insurers and pension funds. ​ With over 170 national and international firms, it fosters long-term investments, offering stable funding, innovation, and management support to non-listed companies. Invest.austria Visit invest.austria is Austria's leading network for investors in the pre-market capital market. The non-profit association aims to support innovations nationwide by fostering and professionalizing business angels, as well as venture capital and private equity firms. Active Owners Denmark Visit Active Owners Denmark is a collaborative association of company owners dedicated to fostering growth and prosperity in Denmark. Comprising private investors, funds, families, venture and private equity funds, and pension funds, our members empower entrepreneurs, elevate companies, and ensure returns for Danish investors and pension savers. Tesi Visit Tesi (officially Finnish Industry Investment Ltd) is the Finnish state-owned investment company driving growth in Finland. As a venture capital and private equity investor, Tesi supports Finnish companies at various stages, aiming to create a positive impact on the national economy through strategic investments and partnerships. France Digitale Visit France Digitale is the largest startup association in Europe, bringing together over 2000 startups and investors (venture capitalists and business angels). Founded in 2012, it advocates for the interests of startups and digital entrepreneurs, fostering a dynamic community. France Digitale actively engages in shaping policies, promoting innovation, and connecting key players to drive the growth of the digital sector. SuperReturn International Visit SuperReturn is a premier investment conference fostering collaboration among the world's leading private equity and venture capital professionals. Organised by industry experts, it provides unparalleled networking opportunities, actionable insights, and strategic discussions. Portuguese Association of Risk Capital Visit APCRI, Portuguese Association of Risk Capital is a non-profit association representing the venture capital and corporate interests, business angels, family offices, startups, and innovative SMEs. It serves as a platform for networking, collaboration, and advocacy, promoting the growth of the investment ecosystem and supporting innovative businesses. The Irish Venture Capital Association Visit The Irish Venture Capital Association (IVCA) is the representative body for venture capital and private equity firms on the island of Ireland. Associate members of the IVCA include firms that provide advisory services including corporate finance houses, commercial and intellectual property law firms, accountants and other advisers experienced in the venture capital field. Startup-Verband Visit The Startup Association (Federal Association of German Startups) is the voice of startups in Germany, advocating for their interests in politics, business, and the public sphere. With a network of 1,200 members, the association fosters dialogue between startups, scale-ups, investors, and established businesses. Its goal is to make Germany and Europe more startup-friendly locations. The Estonian Private Equity and Venture Capital Association Visit Estonian Private Equity and Venture Capital Association (EstVCA) is a dynamic hub fostering innovation and entrepreneurial growth in Estonia. This collaborative platform unites investment professionals, driving economic development and supporting startups. EstVCA plays a pivotal role in shaping Estonia's investment landscape, connecting professionals and contributing to the success of emerging businesses. Startup Portugal Visit Startup Portugal is a non-profit organisation, holding the Statute of Public Utility, with the mission to develop activities of public interest for the promotion of entrepreneurship, in close connection with public and private entities operating in the national entrepreneurship ecosystem. InnovUp Visit InnovUp is Italy's non-profit association fostering innovation by uniting startups, scaleups, innovative SMEs, and various entities in its ecosystem. Representing a diverse range, including incubators, accelerators, and corporations, InnovUp plays a pivotal role in supporting and advancing the Italian innovation landscape. TechChill Visit TechChill Foundation is a leading Baltic tech event that unites entrepreneurs, investors, and enthusiasts. Annually held in Riga, Latvia, it features impactful discussions, startup pitches, and networking opportunities. Founded in 2012, TechChill fuels the region's startup community by connecting key players, fostering knowledge exchange, and inspiring innovation. Startup Estonia Visit Estonia has the highest number of unicorns per capita in Europe. The bustling startup ecosystem Startup Estonia is developing is one of the building blocks of our startup success story. For this purpose we foster three building blocks: availability of human resources and capital, open and connected community and services, and transparent and simple regulative infrastructure. Tech Barcelona Visit Tech Barcelona is a private non-profit association that supports and catalyses Barcelona’s digital and technological ecosystem. Connecting startups, investors, and corporations, it fosters innovation through events, networking, and knowledge sharing. With a mission to position Barcelona as a global tech hub, Tech Barcelona accelerates the growth of the city's digital ecosystem. Startup Poland Visit Startup Poland is a representative body for Polish startups, engaging in dialogue with the government, parliament, the European Commission, and local authorities. The organisation facilitates connections between startups, clients, and investors, contributing to the growth of the Polish startup ecosystem. Innovate Finance Visit Innovate Finance is the independent industry body that represents and advances the global FinTech community in the UK. Our mission is to accelerate the UK’s leading role in the financial services sector by directly supporting the next generation of technology-led innovators. Tech Italian Alliance Visit Italian Tech Alliance is the association uniting investors, innovators, and technology enthusiasts dedicated to fostering Italy's growth through investment, innovation, and the exploration of new technologies. VC Lab Visit VC Lab is the global venture capital accelerator which offers a free program focused on helping new and emerging fund managers raise funds and build enduring, impactful VC firms. VC Lab provides fund-building structure, proven advice, mentorship and peer support to reduce the barriers of entry to the low-transparency and high-cost world of venture capital. Since 2020, we've accelerated 300+ next generation venture funds. Casa do Impacto Visit In this house, it is the causes that move us. We want to contribute to the creation of positive Social Impact! ​ Casa do Impacto is a Lisbon-based social impact hub cultivating the next generation of change-makers. Hosting impactful events, it provides actionable insights, uniting social entrepreneurs and impact investors to shape collaborative ventures. ​ ​ Belgian Venture Capital Association Visit The Belgian Venture Capital & Private Equity Association was founded in 1986 as a professional association representing the venture capital and private equity community in Belgium. BVA members are investment fund managers and professionals who deliver services to the community. Impact Shakers Visit Impact Shakers is a global impact ecosystem tackling societal and environmental challenges through inclusive entrepreneurship. Our mission is to create impact at scale by evolving how we build businesses, for what purpose and who gets to build them. EQL:HER Visit EQL:HER is a platform empowering women in the workplace by facilitating mentorship connections and fostering a supportive community. Through tailored programs and networking opportunities, EQL:HER aims to break down barriers and promote equality, diversity, and inclusion in professional environments. Oslo Business Region Visit Oslo Business Region is the official business development agency of Oslo municipality (Oslo kommune). The organisation supports and builds the startup and innovation ecosystem through city marketing, investment and talent attraction. Angels For Women Visit Angels For Women is an Association, promoted by Impact Hub SB and AXA Italy, made up of mostly women Business Angels who want to invest in female-led startups with high growth potential. Founded in late 2018, today it counts more than 80 business angels and 11 investments. Builders Up next Dive into the funding analysis for female entrepreneurs in Europe. Explore the chapter 1

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The Positive Horizon 2023 has been a turbulent year for both startup founders and investors in Europe. Amid rising interest rates and high inflation, the sentiment among Limited Partners leaned towards making measured bets, with a preference for lower-risk options like bonds. This, combined with a slow exit market, significantly reduced liquidity across venture capital. ​ Operating in a high-interest rate environment also meant increased capital costs for many growth-stage companies ripe for an exit. As a result of reduced valuations, many growth-stage companies decided to hold off on their IPO plans, which is reflected in the low number of IPOs in 2023, down by 35% from 2020. However, despite the challenging conditions, many investors and founders remain optimistic. ​ Challenging times often make great vintage years, bringing more resilient founders and innovative ideas to the fore. ​ ​ ​ Key insights High interest rates provide Limited Partners with more options High interest rates have been making other asset classes carrying much lower risk, such as bonds, an attractive investment option for Limited Partners, making big players like pension funds move away from venture capital. ​ Slow exit market drives down liquidity The traditional investment exit routes—mergers and acquisitions, buyouts, and Initial Public Offerings—have all become more challenging over the past year. This is due to the intertwined issues of rising debt costs for acquiring companies and the difficulty in calculating valuations in a volatile public market, compounded by fewer private transactions. ​ Big tech layoffs With higher interest rates and a greater emphasis on profit rather than revenue growth, dozens of big tech companies have announced layoffs since the beginning of 2023. ​ The Environment 3 3.1 Macro foces European economy is now growing but slowly After several years of economic downturn, Europe is finally experiencing more economic growth. In 2022, Europe saw modest growth, with real GDP per capita increasing by 2.7%. During the same period, countries with a strong manufacturing base, like Germany, saw slower growth, at just 1.8%. On the other hand, emerging economies, such as Poland, surged ahead with a 5.3% growth rate. ​ The expected overall reported growth for 2023 is around 1.3%. GDP per capita growth rate adjusted by PP Notes: Accessed on 22 January 2024, Analysed by Insead. Source: World Bank ​ ​ LinkedIn Copy link Like Download the Report Inflation is coming down The rising costs of imported energy, an increase in company profits, and more recently, growing wages, have been driving inflation up, especially in the first two quarters of 2023. ​ As of 2024, however, inflation rates are expected to come down considerably. For example, the United Kingdom reported headline inflation of 4.7% at the end of the third quarter of 2023, a notable drop from the 9.6% seen in the same period in 2022. However, core inflation, which strips out volatile food and energy prices, remains stubbornly high and is only expected to ease down gradually. The International Monetary Fund predicts that most European countries are unlikely to hit their inflation targets before 2025, indicating that the path to economic stability might be longer than initially expected. Year-on-year inflation in Europe Notes: Accessed on 22 January 2024, Analysed by Insead. Source: OECD 2024, Inflation (CPI) indicator ​ LinkedIn Copy link Like Download the Report Founder, Twinco Capital Sandra Nolasco €50m debt facility and €11m Series A round in January Spain "Twinco is a lending business. When you operate in a high interest rate environment, your business model is put to the test. Can we manage our liquidity? Can we predict our portfolio performance? I think the mindset of the investors this year has also been about understanding whether the management teams have the ability to predict future cash flows and liquidity events. If you can manage your cash flow efficiently, you can be extremely successful. It also has a significant impact on your profitability." High interest rates provide Limited Partners with more options The impact of high interest rates over the past twelve months has made a major impact on the venture capital industry. With high interest rates, other asset classes carrying much lower risk, such as bonds, have been an attractive investment option to Limited Partners, making big players like pension funds move away from venture capital. Euro Area saw a jump from a mere 0.25% in interest rates in the third quarter of 2022 to 4.25% in the same period of 2023. While impact of high interest rates on venture capital funds seems to be now stabilising, we are yet to see any evidence of the return of Limited Partners' appetite for venture investments. Policy relevant central bank interest rates Notes: Analysed by Insead Source: Central Banks' websites ​ ​ LinkedIn Copy link Like Download the Report Generl Partner, LightPace VC Chenelle Ansah Fundraising United Kingdom "It's clear that the macroeconomic situation in 2023 has influenced my fundraising efforts. Even though most of my conversations with LP investors have been positive, what I have found frustrating has been the absence of clear rejections. I believe I have only received three rejections, despite engaging with LP investors for almost a year now. When you hear a clear "no," it provides clarity, allowing you to recalibrate your strategy. Determining whether it's a market-related issue or if it's linked to my track record or thesis is a puzzle because I hardly ever receive a direct response. I believe that investors have been very apprehensive this year, due to the uncertainty in the financial ecosystem." Dormant IPO market means less liquidity While macroeconomic headwinds may be subsiding, they are still stifling the ability of Private Equity and Venture Capital funds to exit their investments. The traditional exit routes—mergers and acquisitions, buyouts, and Initial Public Offerings (IPOs)—have all become more challenging over the past year. This is due to the intertwined issues of rising debt costs for acquiring companies and the difficulty in calculating valuations in a volatile public market, compounded by fewer private transactions. ​ There were 107 IPOs across Europe raising €10.2bn in 2023, a fall of €5.4bn on the previous year which saw €15.6bn raised from 102 IPOs. ​ Fewer IPOs, mean less capital flowing back to LPs. This is having two key knock-on effects: less fundraising and less deal activity. Number of IPOs across Europe in 2023 107 Funding raised by European IPOs in 2023 €10.2B Reduction in capital raised compared with 2022 35% Source: PwC’s 2024 IPO Watch ​ ​ LinkedIn Copy link Like Download the Report Number of IPOs, by European exchange, per year, 2019 to 2023 Source: Bloomberg ​ ​ LinkedIn Copy link Like Download the Report M&A shows signs of rebound While 2023 saw a notable slowdown in mergers and acquisitions (M&A) across Europe, the S&P 500 ended the year near record highs, a peak last seen in January 2022, signalling a potential rebound. And so, while the strength and speed of this recovery remain uncertain due to ongoing macroeconomic and geopolitical challenges, market sentiment suggests that corporate acquisitions will increase in both value and number of transactions in 2024. Number of M&A deals in Europe, per quarter, 2019 to 2023 Notes: Data as of January 8th 2024. Includes announced or completed M&A deals. Source: S&P Global Market Intelligence ​ LinkedIn Copy link Like Download the Report Europe is searching for more talent Navigating the European labor market has become a complex puzzle for many companies. Advanced economies like Germany and the United Kingdom are experiencing an interesting phenomenon: there are more job vacancies than unemployed people. This scenario reflects the challenges companies face in finding new talent. Labour market demand: ratio of vacancies to unemployment Notes: Analysed by Insead Source: Eurostat, UK Office for National Statistics ​ LinkedIn Copy link Like Download the Report Founder, Fyma Karen K Burns €2m round in November UK / Estonia "Managing a company in the 2023 market conditions has been stressful. Making hiring plans has been particularly challenging, especially when we had to make decisions based on limited and evolving information about the tech ecosystem. With constant news about layoffs and other companies' successful fundraisings, it was essential for me to keep our team's morale high and maintain open communication." Big tech layoffs With higher interest rates and a greater emphasis on profit rather than revenue growth, dozens of big tech companies have announced layoffs since the beginning of 2023. It's estimated that over 250,000 people lost their tech jobs in 2023. This trend is likely to continue into 2024, potentially drawing more highly-skilled talent to technology startups and possibly leading to a new wave of ventures being created as a consequence . Number of lay-offs at big tech companies from April 2022 Source: Layoffs.fyi tracker ​ ​ LinkedIn Copy link Like Download the Report 3.1 Investment Levels Up next Gain a better understanding of the level of venture capital investment in European startups, regardless of founding team's gender. Explore the chapter

Methodology Companies in the report Dealroom and Female Foundry worked together to identify over 12,000 startups, which forms the basis of insights provided in this report. To be considered in the scope of this report, all companies must meet a number of criteria, including: ​ Being a startup, according to the Dealroom definition (see below), and practical implications and limitations therein. Having at least one (co-)founder identified as a woman (see below); Being based in one of the 18 countries which fall within the scope of this report: ​ United Kingdom Germany France Spain Portugal Denmark Luxembourg Poland Switzerland Norway Austria Sweden Norway Finland Estonia Ireland Berlgium Netherlands Notes: The company’s primary location, or main center of business, is determined by a number of factors including: (1) the existence of a legal entity in the country (2) the location of the majority of its headcount and/or (3) the location of the majority of its management team, starting with its (co-)founders and/or CEO and c-level executives. Startups which were founded in one of the scope countries, which later relocated their main address (legal or executive, often to the United States) to another country, regardless of the purpose of relocation, are included in this report. What is a startup? Dealroom’s definition of a startup. ​ ​ All companies in this report are startups. A startup is defined by Dealroom.co as a company designed to grow fast (either developing tech or using tech to operate its business). In practice, a startup is a company which: ​ Was founded in or after 1990 (i.e. it was founded in the information age); Is currently active, i.e. the company’s website is active, and its online presence exhibits signs of activity, including recent headcount growth and/or recent (professional) social media activity , and/or significant traffic on its website. Exited, acquired or public startups are included in this report, so long as they maintain a distinct legal and/or effective existence from the holding company; Has been identified by Dealroom.co as a company with a VC-backable business model, leveraging Dealroom’s industry taxonomy. ​ More on Dealroom’s startup definition HERE . ​ ​ Categorisation, Industries and Taxonomy ​ ​ This report uses the standardised categorisation and proprietary tech taxonomy developed by Dealroom. Industries: startups, as well as capital invested in them, are categorised under minimum one, and up to two industries as defined in Dealroom’s industry taxonomy . Therefore the sum of investments made by industries (or verticals) should not be aggregated as double counting may occur. Business focus: startups may be categorised according to one of two business focuses: B2B or B2C. Some startups may offer products qualifying them as both B2B and B2C. Business Model: ​ eCommerce & Marketplace: A place connecting a buyer(s) and seller(s) where goods or services are bought, sold or exchanged. Manufacturing: The making of goods by hand or by machine that upon completion the business sells to a customer. SaaS: Software-as-a-Service, a method of software delivery and licensing in which software is accessed online via a subscription, rather than bought and installed on individual computers. More on Dealroom’s proprietary tech taxonomy HERE . ​ ​ Cohorts ​ Startups may also be categorised according to their founding year. All startups were founded in or after 1990 (information age). The founding year of a startup is determined by the startup themselves (self-reporting) on Dealroom.co directly, in publicly available content (news article, interviews), or as reported by the companies’ (co-)founder(s), investor(s) or backer(s). On growth stages, funding and VC backing Stages, rounds and maturity. ​ In this report, startups are categorised in two main ways: ​ Early-Stage - companies that have raised less than €5m in total funding. Growth-Stage - companies that have raised €5m or more in total funding. Out of those which are VC-backed, startups are categorised according to the latest funding round disclosed. Categorisation is not based on the startups’ (self-)reported round label. Instead, this report uses the disclosed amount as leading factor, following Dealroom’s standardised approach: ​ ​ Pre-Seed: all startups with a disclosed VC-type funding round of <1M US$ Seed: all startups with a disclosed VC-type funding round of min. 1M and up to 4M US$ Series A: all startups with a disclosed VC-type funding round of min. 4M and up to 15M US$ Series B: all startups with a disclosed VC-type funding round of min. 15M and up to 40M US$ Series C: all startups with a disclosed VC-type funding round of min. 40M and up to 100M US$ Mega(round): all startups with a disclosed VC-type funding round of min. 100M and up to 250M US$ Mega(round) plus: all startups with a disclosed VC-type funding round of over 250M US$ ​ Funding rounds which are not classified as VC-type, including grants, debt, and other forms of funding, are excluded from reported VC investment figures. However these may be used to qualify a startup’s most adequate stage when no other form of funding has been disclosed. Round stages and cutoffs are based on US Dollars. This report uses the Euro (EUR) as standard reporting currency. For those transactions in US$ or any other currency in circulation in scope countries, Dealroom.co applies a fixed conversion rate as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Funding v. VC-backing ​ In order to grow fast and amplify their impact, many startups receive third-party support. This support may come in various shapes and forms. VC-backed ​ The main route is to be VC-backed, i.e. to receive growth capital in return for a share of the company’s equity. Growth equity provided to startups by Venture Capital funds, as well as other types of investors, so long as the (stated) goal is to accelerate growth or finance business expansion, is considered VC. However not all startups are VC-backed: in fact only about 50% of startups in this report are. Funded startups ​ All VC-backed startups are funded by definition. Additionally, some startups are classified as funded only, meaning that they have received a form of third-party support, often in the form of funding, but are not (yet) VC-backed. Funding in this context includes equity-dilutive as well as non-equity dilutive financial support, the most common such types being loans/debt and grants. Funding may also include in-kind support, or a mix of financial and in-kind support, including being part of an acceleration or incubation programme, being a corporate or academic spinout (or spinoff), or receiving other forms of backing, including media for equity, or other undisclosed forms of support (support program). In this report, the majority (7.3K) of startups are funded according to this Dealroom definition. However fewer than 1K startups are funded but not VC-backed. Bootstrapped and undisclosed funding ​ All other startups, or about 5K (~40% of the total) are either Bootstrapped or have received third party funding without disclosing it. These startups are overwhelmingly early-stage companies: 40% were founded in the last 5 years, 80% in the past 10 years. The vast majority of these startups are believed to be bootstrapped, i.e. to self-fund their growth with generated revenue, without third-party funding or support. On identifying founders, co-founders, and their gender identities Startups are founded by individuals who embark on the entrepreneurial journey in various ways. In the context of this report, a founder or co-founder, as there is no hierarchy between the two, is defined as an individual who self-identifies as such. Identification is primarily sourced from a company's legal filings, its website or the website of its (VC) investors or backers. It may also be retrieved from (professional) social media, media or blog articles published, edited or featured by the startup or the founder(s) themselves. Other forms of official communication issued by the startup , its investor(s) or backer(s), or reported in media articles may also be used. Generally, a founder may be defined as an individual who started the company. However (co-)founders may join a company at a later date: there are cases where an individual’s impact on a startup, usually at a very early stage, has been pivotal in a way that allows them to describe themselves as (co-)founder. Thus, there may be cases where not all (co-)founders were involved in the company’s operations from the start, but the vast majority of founders have played a foundational role in setting up the company. Conversely, (co-)founders may leave the company but will remain (co-)founders even if they are no longer part of the management team of said company. Therefore, while not all (co-)founders hold a position of significant influence at present in the startup which they founded, the majority of them do. Startup (co-)founders usually hold a “c-level” position in their respective startups, usually in their capacity as CEO (Chief Executive Officer) or CTO/CSO (Chief Technology Officer / Chief Scientific Officer). Other active (co-)founders may exert influence in their capacity as strategist, or in honorary functions or non-executive functions, in particular for those startups which have been acquired, have excited, or have gone through extensive restructuring. In this regard, while founders usually retain a significant (or majority) equity stake in the company which they have founded, there is no minimum ownership or equity-holding percentage applicable in the context of the identification of a (co-)founder in this report. Not all startups disclose the identity of their founders. Not all startup founders, whether current or past, wish or decide to (self-)identify as such. In spite of our best efforts, not all disclosed identities may be captured, and therefore associated with active startups. When founding teams are identified, they are assumed to be complete. However it cannot be excluded that (former) (co-)founders, or (co-)founders with a more limited online presence or level of involvement in the startup, may have been omitted. Founder gender is retrieved in two main ways. ​ In the case where an identified (co-)founder has self-identified on the gender spectrum publicly and explicitly, either directly, on the Dealroom platform, or one of its partner ecosystem platforms , or indirectly, by submitting gender (self-)identification data to one of Dealroom’s data partners, then the gender of the individual who is identified as a (co-)founder will serve as a base to identify the startup as (co-)founded by a woman. In the case where none of the identified (co-)founders has self-identified on the gender spectrum, then Dealroom may have identified the founding team as (1) gender-diverse, or as (2) an all-women founding team which is constitutive of Dealroom’s Woman Founder categorisation. Identification of founding teams is based on a variety of factors including news coverage of a startup and its founding team, the participation of individual (co-)founders or of the startup itself in women-entrepreneurship (support) programs, or the backing that the startup may have received from investors and support programs tailored for women entrepreneurs. On the State of gender diversity in European venture survey Respondent Categories ​ In the context of our study, Female Foundry conducted an online survey targeting five key demographic segments: ​ Female Founders - Restricted to female entrepreneurs operating in Europe. Female Emerging Fund Managers - Also gender-restricted, operating. This category includes fund managers who have not yet raised a fund but are in the process of doing so, extending up to those who have successfully closed their third fund. Venture Capital investors - Open globally to VC investors of all levels of seniority who have made at least one investment into European companies. Limited Partners - Open globally to Limited Partner investors of all levels of seniority who have made at least one investment into a European fund. Angel Investors - Restricted to angel investors based in Europe. The Survey Period ​ The survey was conducted over an eight-week period, beginning on October 11, 2023, and concluding on December 6, 2023. ​ Validation of Responses ​ To ensure data integrity, we conducted a thorough vetting process for each survey response. This included the exclusion of responses that failed to meet specific criteria, such as appropriate geographic location (Europe for female founders, angel investors and emerging fund managers), and the necessity for a valid, disclosed email address, alongside other identification methods, using Linkedin and other platforms, such as Crunchbase and Dealroom. The verification process was manual, with a strong emphasis on maintaining data confidentiality. Responses that were dubious in terms of their authenticity were excluded from the analysis. Survey Outcome ​ Overall, the survey received 1,202 responses. After the meticulous validation process, 1,168 of these responses were confirmed as valid and reliable. These responses were then included in our final analysis and the insights drawn from the survey. On investors, funds and their managers Data pertaining to individuals who are (angel) investors or fund managers in their capacity as partner or general partner are included in the scope of this report. The gender of individuals, whether in their capacity as founders or investors, follows the same rationale (see “On identifying founders, co-founders, and their gender identities.”). In the context of this report, “Funds” refer to disclosed (investment) vehicles. The Fund is dated to the first public disclosure of the vehicle. The amount associated with the Fund corresponds to the highest amount which has been publicly disclosed, regardless of date of final close. Funds are managed by investors (i.e. investment firms). Analysis on people data focuses on individuals who are part of the (management) team of investment firms (self-)described or categorised as (i) Venture Capital (ii) Corporate Venture Capital (CVC) (iii) Private Equity, insofar as at least one fund under management is classified as VC, and (iv) Family Offices. On 50 Top Rounds List Demographic data ​ ​ When compiling the list of the Top 50 Rounds in 2023, we used publicly available data to confirm the identities of founders involved in the biggest European rounds. Where we had doubts about the identity, education, or demographic profile of an individual, we excluded that person from our analysis. ​ Company and round data ​ We tried to allocate just one sector per company, which we understand has its limitations. All the rounds were converted into € using average currency exchange rate of 2023. Up next 5 The Community This report is not really about the statistics. It is about real people. Connect with the vibrant community of European innovators, trailblazers and thinkers and continue the conversation. Explore the chapter

2.4 VC Landscape The Stepping Stones There has been a gradual improvement in gender representation across European funds, as our data demonstrates. However, the proportion of women in decision-making roles within venture capital firms still lags behind, highlighting the need for continued efforts to create an environment that can attract more women into investment roles. Key insights 17% of all top decision-makers in European VC firms are women. Female general partners and female partners still constitute a small proportion of all venture capital partners in Europe. ​ 82%, female founders say that the gender composition of their boards is important to them. Unlike the gender of investors, the gender composition of the board matters to female founders in Europe. ​ French venture capital funds have the highest number of female general partners in Europe. This is a paragraph where you can include any information you’d like. It’s an opportunity to tell a story about the company. ​ Representation of women in top positions in European venture capital funds remains low Female general partners and female partners still constitute a small proportion of all venture capital partners in Europe. According to our analysis, only 17% of all top decision-makers in European VC firms are women. Percentage of women in general partner and partner roles in Europe of all general partners in VC firms in Europe are women. 17% Notes: Source: Female Foundry, Crunchbase, Pitchbook LinkedIn Copy link Like Download the Report Female founders have mixed opinions when it comes to the significance of the gender of investors backing them In our survey, we wanted to gain more insight into just how important the gender of investors is for female founders creating businesses in Europe. ​ We received mixed responses. ​ Although gender appears to be more significant for female founders who have not yet received any funding, in general, the responses are inconclusive, with a slightly higher proportion of female founders indicating that it does not matter for them. Does gender of an investor matter to you? Female founders only Notes: 'Funded' founders are those who have raised any amount of funding. Source: ​ ​ LinkedIn Copy link Like Download the Report Associate, Earlybird Natalia Ahmadian Germany "I have definitely seen a positive impact of being part of a diverse investment team. This year, we seen a growing number of female founders proactively approaching us. Participating in events (both as an attendee and organizer) dedicated to female founders has been incredibly rewarding and led to very strong connections between founders and VCs. This also gave me the chance to leverage my network to encourage more female entrepreneurs to step forward, start their ventures, and connect with relevant stakeholders such as VCs and angels." 82% of female founders say that the gender composition of their boards matters to them Unlike the gender of investors, the gender composition of the board matters to female founders in Europe. In an overwhelming majority, 82%, female founders who participated in our survey stated that the gender composition of their boards is important to them. Does gender composition of your board matter to you? Female founders only of female founders say that gender composition of their board matter to them. 82% Notes: All female founders. Source: ​ ​ LinkedIn Copy link Like Download the Report VC investor, Molten Ventures Paul-Louis Lepine United Kingdom "The distinctive value added by women in board positions goes beyond diversity or the fostering of an inclusive company culture. Companies catering predominantly to female demographics, such as femtech, fashion, home & design, health & wellness, or groceries, should and are actively seeking female board members to leverage their insights and deeper understanding of the customer base." France has the highest number of new funds with at least one female general partner in 2023 Our analysis of funds with at least one female general partner reveals that France, the United Kingdom, and Germany have the highest number of funds with female General Partners. Geographical location of new funds with at least one female general partner, 2023 Tap on a bar to reveal the exact number Notes: Source: Dealroom LinkedIn Copy link Like Download the Report Geographical location of new funds with a female general partner over the years See how the number of new venture capital funds with at least one female general partner has been evolving over the past five years in the countries within our scope in Europe. New funds with a female general partner per country, 2019 to 2023 Tap on a bar to reveal the exact number Notes: Source: Dealroom LinkedIn Copy link Like Download the Report Associate, Eurazeo Carole du Fretay France "The diversity of individuals you engage with and the intellectual stimulation you experience daily make a VC role ideal for someone who is hyper-curious. For me, venture capital is synonymous with my passion. I enjoy talking with people who are driven by making changes in the world. In this role, it's of course essential to assess risks, yet equally important to dream and believe in opportunities, focusing on the upside rather than the downside! The human aspect and the necessity to trust your instincts add an extremely exciting dimension to the job, which I can genuinely enjoy." Over a third of principals and mid-level investors at European VC firms are women We wanted to find out how many female principals and mid-level investment positions there are in European VC firms to better understand what the gender representation looks like for positions just below the Partner level. We found that over a third of those positions are currently filled by women. Proportion of female principals and mid-level investors at European venture capital firms of principals in European venture capital firms are women. 34% Notes: Positions classified as 'principal' encompass vice-president and director levels. Funds with over $25m AUM, everywhere in Europe. Source: Female Foundry LinkedIn Copy link Like Download the Report 15 women were promoted to partner level in 2023 We have been monitoring the promotions of female venture capital investors in 2023. A total of fifteen female investors were promoted to partner level. female investors in the European VC firms were promoted to partner level in 2023. 15 Notes: Source: Female Foundry, Pitchbook, Dealroom LinkedIn Copy link Like Download the Report Up next 3 Environment Macroeconomic forces play a crucial role in shaping the venture capital landscape, influencing investment strategies and startup valuations. Factors such as inflation rates, interest rates, and economic growth patterns can significantly impact investor sentiment and the availability of capital. Learn how the macroeconomic forces have been shaping the venture capital ecosystem of today. Explore the chapter