1.5
Sector in focus
Not all sectors are created equal
Fundraising success is often influenced by the sector in which startups operate - investor preferences and the availability of funding vary greatly across different industries. Sectors that are perceived as high-growth and align with the most recent technological trends attract more VC and angel funding.
The ease of demonstrating customer traction and bringing products to market can also differ substantially by sector. High-tech startups are able to rapidly iterate and deploy products, while startups in industries like manufacturing or pharmaceuticals face longer development cycles, regulatory hurdles, and higher capital requirements.
Therefore, deciding on a sector in which to operate in requires from female founders to be strategic - it means they have to not only innovate within their area of expertise but also navigate investor preferences and evolving market sentiment.
Key insights
Female-founded startups in the health sector raised €1.5B - 25% of all funding that went to female entrepreneurs in 2023.
Among European female-founded startups, in 2023, investments grew fastest in security compared to 2022 with an impressive 5x.
80% of the entire investment that went into European female-founded companies in 2023 was directed towards companies with either a B2B or a B2B/B2C business model.
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Angel investor, HERmesa
Marla Shapiro
United Kingom
"We have not backed any new AI companies yet, partly because we believe the valuations in this space are too high and partly because the pace of development is so rapid, we want to see how AI's future unfolds.
Having said this, we have reinvested in portfolio companies that are successfully deploying AI into their tech stack and building on their proprietary databases. We are very excited about the potential of this technology long term; however, many of the investment opportunities we have seen so far have seemed very ‘me too’, leading us to question their unique value proposition."
Health is both the most popular and best-funded sector for female founders in Europe
Female-founded startups in the health sector raised €1.5B - 25% of all funding that went to female entrepreneurs in 2023.
This also corresponds to the sector with the largest number of female-founded startups in Europe. Energy meanwhile, raised the second highest funding level among female-founded startups, despite only being 9th in terms of number of female-founded startups.
Sectors that have received funding vs sectors of founded companies by female entrepreneurs in Europe
Tap on a bar to reveal the amount
Notes:
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Founder, KetoSwiss
Dr. Elena Gross
$4.8m round in August
Switzerland
"The development of AI has been driving many investors, even those operating in the health and medical sectors, towards tech-related solutions in the healthcare space.
However, I firmly believe that physical diseases cannot be completely cured or effectively treated solely with an app or AI technology. AI technology can useful for prevention and support, but when it comes to physical health issues at the molecular or cellular level, technology has its limitations. I believe that AI and technological advancements can only be valuable alongside tangible, physical treatments."
Health, fintech and food dominate as the most funded sectors for female-founded companies in Europe
With the exception of 2022, health has been consistently the most funded startup sector for female-founded companies in Europe.
Fintech and enterprise software make frequent appearances in the top five funded sectors each year, but energy has been on the biggest growth journey since 2019.
Capital invested in a given sector (€M), 2019 to 2023
Tap on a bar to reveal the exact amount
Notes:
Source: Dealroom
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Founder, Open Payments Europe
Louise Brandt
€3m round in March
Sweden
"Fintech is bursting right now with innovation and forward-thinking, bringing a lot of positive energy to the industry. We find ourselves in an exciting phase of what open banking can offer the market.
We take pride in being at the forefront of open banking: our approach is rooted in providing secure and trustworthy banking solutions through collaborative efforts with other stakeholders, actively shaping the landscape and driving the evolution of this transformative field."
Geographical dominance of specific sectors varies.
Dive deeper to understand how much capital has been invested in specific sectors across the European countries within the scope of our analysis.
Capital invested in a given sector (€M) per country, 2019 to 2023
Tap on a country to reveal the exact amount
Notes: 18 countries only.
Source: Dealroom
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Founder, SmartyMeet
Monika Wyszynska
€150k round in January
Poland
"Having worked in various roles, from legal and public procurement to COO, I constantly saw the challenges companies faced in managing people and culture. My decision to start SmartyMeet was hugely influenced by my career.
Together with my co-founders, we have developed the solution that not only addresses operational gaps but also leverages technology to enrich organisational culture. Our aim is to create a platform that can intelligently analyse and respond to the nuances of human interactions within a business setting, a need I had personally seen unmet in the market."
Security, music and energy sectors see the highest growth in funding in 2023
Among European female-founded startups, in 2023, investments grew fastest in security compared to 2022 with an impressive 5x. Health - the biggest sector by investment volume for female founders - also grew in 2023, but only by a moderate 13%.
Change in total capital invested (%) per sector, 2022 vs 2023
Tap on a year to see the year-on-year difference in funding
Notes:
Source: Dealroom
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Founder, Piclo
Alice Tyler
€9.3m Series B round in March
United Kingdom
"When considering the impact of 2023 and the broader energy industry trends on our business, I must say that the energy industry is still in its infancy stage when it comes to innovation.
The energy industry, as a whole, tends to evolve slowly, and although our niche has been around for about five years, that is still short in the context of the energy sector. The lack of maturity of our niche has been posing a variety of challenges for our business model, particularly in terms of growth within a slow-moving environment."
Female-founded B2B businesses received the largest portion of funding in 2023
Analysing the total funding across three key business models, it is quite striking that 80% of the entire investment that went into European female-founded companies in 2023 was directed towards companies with either a B2B or a B2B/B2C business model.
Only 20% of all capital was allocated to purely consumer-focused businesses.
For context, in 2019, more than 30% of all investment into female-founded companies went to B2C startups.
Proportion of the total capital invested, B2B vs B2C vs B2B2C, 2019 to 2023
Tap on a bar to reveal the exact percentage
Notes:
Source: Dealroom
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Founder, Bloom Money
Nina Mohanty
£1m Pre-Seed round in July
United Kingdom
"We had this very interesting wave of FinTech that started in 2015, when fintech companies raised rounds of hundreds of millions of dollars and did a lot of the hard work of building core infrastructure.
What really excites me now about fintech is the opportunity to serve niche communities. Instead of having to spend tonnes of resources building that initial tech stack, consumer fintech today is about building a product that resonates with a specific group of people that results in high stickiness and loyalty."