TLDR:
- The German Federal Ministry for Economic Affairs and Climate Action (BMWK) and Dutch state-owned investment fund Invest-NL have joined the pan-European Gender Smart Equity Investment Programme funded by the European Investment Fund.
- The programme aims to boost gender diversity in venture capital and private equity firms, as women currently hold only 14% of top jobs in venture capital firms in Europe.
The German ministry and Invest-NL have become the first two parties to participate in the Gender Smart Equity Investment Programme, which aims to increase female participation in venture capital and private equity firms. This initiative was launched by the European Investment Fund (EIF) in response to a recent study that found women hold only 14% of top positions in venture capital firms in Europe, despite accounting for 35% of lower-ranked positions. The scheme will operate as a virtual platform, with individual mandates being developed with national promotional institutions in EU countries. These mandates require firms to have a management team with at least 30% female representation, a senior investment team with at least 40%, or an investment committee with at least 40% women.
According to the President of the EIB group and Chair of the EIF board of directors Nadia Calviño, gender diversity in venture capital and private equity firms has the potential to deliver better financial results. In a 2020 report, the European Investment Bank highlighted that greater gender diversity in the workforce could increase annual global GDP by 26% and enhance business performance by 15%. The initiative is aimed at fostering a more inclusive and innovative business environment by promoting interaction between mixed-gender investor teams and female business leaders.
Further support for gender-lens investing has been emphasized by Anna Christmann, commissioner for digital economy and start-ups at BMWK. She noted that it is crucial to close the gender gap in VC funds to strengthen the start-up landscape across Europe. As gender-lens investing continues to grow, initiatives like the Gender Smart Equity Investment Programme play a crucial role in promoting gender diversity and inclusivity in the venture capital and private equity sectors.
