The UK had one of the highest percentages of venture capital funds invested in startups with female founders in Europe last year, according to a report from Female Foundry. However, the report also highlighted that male-founded companies continue to receive the majority of investment, indicating a significant gender gap in funding.
Key Points:
– 16% of VC investment in the UK went to startups with at least one female founder, the highest percentage in Europe after Luxembourg.
– Female-founded companies in Luxembourg raised 40% of the country’s total VC funding, although this figure was influenced by two large funding rounds.
– Denmark took the second spot, with 15% of VC investment going to startups with female founders.
The report emphasized the resilience of female founders and fund managers in the UK and Europe, who faced challenging macroeconomic conditions. It revealed that European female entrepreneurs received €5.9 billion ($7.1 billion) in investment, ranking as the third highest year on record after 2021 and 2022.
Female Foundry also highlighted the increase in funding available to female founders, particularly at later stages of funding. The average funding round size for Series C, for example, increased by 45% from 2022 to €80 million ($96.6 million). The largest funding round last year for a European company with a female co-founder was £71.4 million ($85.9 million) raised by Synthesia in June 2023.
Agata Nowicka, CEO of Female Foundry, commented on the report saying that female entrepreneurs and fund managers in Europe continue to innovate despite challenging fundraising conditions. She also highlighted the untapped potential for innovation driven by women and urged investors to support female founders and fund managers in Europe.
However, the report also noted the persistent gender funding gap in the startup ecosystem. Separate data published by Beahurst and The Entrepreneurs Network showed that women-led businesses secured only 3.5% of equity funding invested in UK businesses in the first half of 2023, compared to 11.4% for startups led by both men and women.
Overall, while the UK leads in terms of VC funding for female founders in Europe, the report indicates the need for further progress in closing the gender gap and providing equal opportunities for both male and female entrepreneurs in the startup ecosystem.
