TLDR:
- Female-founded companies in Europe receive significantly less investment than male-founded companies.
- In 2023, female founders saw a record high percentage of deal count and value in the European VC ecosystem.
There is a significant number of researches dealing with gender inequalities in the tech sector, showing some progress and changes. However, female-founded companies in Europe are still receiving far less investment than their male counterparts. The PitchBook report “All In: Female Founders in the European VC Ecosystem” highlighted the disparities in venture dealmaking based on founder gender, with female-founded companies collectively receiving less investment. Despite facing challenges in fundraising, female founders and emerging fund managers in Europe have shown resilience.
The report revealed that in 2021, female-founded companies collectively closed more than €10 billion, a record high. However, all-male-founded companies in Europe consistently closed more than €10 billion each year since 2015. While female-founded companies remain a small part of the European VC ecosystem, the report showed growth in the number of deals closed each year. Female founders saw a significant increase in their proportion of deal count and value in 2023.
Deal count for female-founded companies declined in 2023 across all verticals examined, but deal value trends varied. Despite the decline, female founders closed €8.1 billion within the tech vertical, marking the third-highest annual level on record. Female angel investments in female-founded businesses also saw a decline in 2023, with the lowest total deal value since 2018. Female angel investors have become more active in rounds for female founders, establishing synergistic relationships.
The European venture exit environment has been declining annually, with female founders creating almost €2 billion in total exit value between 2019 and 2022. However, the 2023 figures showed a decline in exit value and the number of exiting companies. Despite the challenges, the report highlights the momentum and resilience of female founders and investors in the European VC ecosystem.
