Thank you for joining the Female Innovation Index Survey. Your contribution allows us to paint an accurate and vivid picture of the European venture ecosystem with data and to discover opportunities and challenges for the investment and startup community. Your perspective is important. Add a Title Add a Title Add a Title Add a Title Add a Title Welcome to the 2025 Edition of the Female Innovation Index Europe's biggest analysis of the funnel of funding and innovation driven by female entrepreneurs Start the journey Join Launch Event Official Launch Event of the 2025 Edition of the Female Innovation Index London | March 3rd 2025 Female Innovation Index The biggest analysis of the funnel of innovation driven by female entrepreneurs in Europe 145,038 European companies analysed Elsa Hyland angel investor Aurora Maggio zefi.ai Sri Ayangar Lakestar Ariane Cruz Gomes baseimmune Murvah Iqbal HIVED Adrian Locher Meantrix Elaf Deyab Caspa AI Piotr Bukanski Beringea Jessica Corry Xterna Bianca Forte SugarOx Zoe Qin Dawn Capital Arelys Sosa DREV Apostolos Apostolakis VentureFriends Tom Simmonds LSEG Albane Dersy Inbolt Elsa Hyland angel investor Aurora Maggio zefi.ai Sri Ayangar Lakestar Ariane Cruz Gomes baseimmune Murvah Iqbal HIVED Adrian Locher Meantrix Elaf Deyab Caspa AI Piotr Bukanski Beringea Jessica Corry Xterna Bianca Forte SugarOx Zoe Qin Dawn Capital Arelys Sosa DREV Apostolos Apostolakis VentureFriends Tom Simmonds LSEG Albane Dersy Inbolt Meet the Contributors As covered in The Funnel of Innovation Innovation = Idea + Capital Idea Innovation Impact capital capital + scale View Methodology Female Innovation Index 2025 In under 3 minutes Choose your journey Select the track Meet the team By founders & investors For the entire venture ecosystem Meet our Partners Our partners Backed by key ecosystem players Hear from our sponsors Rita Sobral Cooley Neil Lock Google Cloud Florence Keelson-Anfu The London Stock Exchanage Anchor Sponsors Affiliate Sponsor Event Sponsors Anchor Data Partner

Innovation idea + capital Funding is the lifeblood of innovation, turning bold ideas into reality. Without capital, groundbreaking technologies, transformative business models, and industry disruptors struggle to take off. Investment fuels research, accelerates product development, and enables startups to scale, bringing new solutions to market. In a fast-moving world, sustained funding ensures continuous progress, keeping innovation alive. More Seed stage female-founded companies reach Series A than the broader startup population Cumulative share of female-founded companies that raised capital at subsequent funding stages European female-founded Seed Series A Series B Series C Series D 100% 20 % 6.5% 2.5% 1.3% European average Seed Series A Series B Series C Series D 100% 18 .9% 6.8% 2.9% 1.4% Data source: Dealroom Female-founded companies in Europe raised of venture capital funding in 2024 5.76B Total venture capital investment into female-founded companies has fallen but the decline is consistent with the overall market trend Total venture capital invested (€B) into female-founded companies Europe 4.52 11.04 9.08 6.56 5.76 2020 2021 2022 2023 2024 Data source: Dealroom 12% €48.8B Capital raised by female-founded companies in 2024 represents 12% of €48.8B venture capital raised by all European companies % of venture capital raised by female-founded companies to the total venture capital raised by European companies Europe 2024 Data source: Dealroom €48.8B 12% €54.5B €88.4B €104.7B €43.1B Proportion of venture capital raised by female-founded companies is on the rise % of venture capital raised by female-founded companies compared to the total venture capital raised Europe 2020 to 2024 10% 10% 10% 12% 2020 2021 2022 2023 2024 Data source: Dealroom The vast majority of ecosystem players believe that access to funding is essential for driving innovation Do you believe that access to funding impacts a company's ability to innovate? female founders startup employee angel investors VC investors LP investors Yes I don't know No Add a Title 91% Add a Title 3% Add a Title 6% Yes I don't know No Add a Title 79% Add a Title 2% Add a Title 18% Yes I don't know No Add a Title 93% Add a Title 0% Add a Title 7% Yes I don't know No Add a Title 88% Add a Title 0% Add a Title 13 % Yes I don't know No Add a Title 81% Add a Title 6% Add a Title 13 % Source: Female Innovation Index Survey 2025 Both venture capital and angel investors see more female-founded companies leveraging emerging technologies in their dealflow Thinking about your dealflow, what change in the number of female-founded companies that leverage emerging technologies have you seen in the past 12 months? Add a Title 10 % Add a Title 40% Add a Title 42% Add a Title 9 % Add a Title 0% Add a Title 6% Add a Title 47% Add a Title 36% Add a Title 11% Add a Title 0% angel investors VC investors Significantly more More No change Fewer Significantly fewer Source: Female Innovation Index Survey 2025 'Over the past year, I’ve come across significantly more female founders leveraging emerging technologies to build their companies than in previous years. I’ve also seen many integrating AI into their existing businesses, enhancing everything from decision-making to product development. ' Elsa Hyland angel investor Angel investors spend more time seeking investment opportunities in female-founded companies Compared to 12 months ago, have you been allocating more or less time to actively seek investment opportunities in female-founded companies? 51% of angel investors are spending more or significantly more time seeking female-founded dealflow Source: Female Innovation Index Survey 2025 40% of venture capital investors are spending more or significantly more time seeking female-founded dealflow Proportionally female-founded companies are equally successful in raising VC funding as the overall company population % of companies in a specific category that raised venture capital relative to the total number of companies in that category Europe 2020 2021 2022 2023 2024 female-founded 9.7% 11.3% 9.9% 7.5% 5.6% 2020 2021 2022 2023 2024 gender-agnostic 9.7% 11.1% 9.2% 7.9% 5.9% Data source: Dealroom 'We remain committed to investing in female founders and over 30% of our new investments had a female founder in 2024. To support our efforts and dealflow, we have fund of fund investments in diverse Micro-GP funds alongside running our own female-founder retreats while engaging in many female-founder events.' Marie-Helene Ametsreiter General Partner Speedinvest The number of female-founded companies in Europe that raised venture capital funding in 2024 1196 by female-founded companies in Europe in 2024 1305 The number of financing rounds raised Data source: Dealroom Fewer female-founded companies received funding and raised fewer rounds than last year, reflecting broader market trends Number of female-founded companies that received funding, number of rounds raised Europe 1878 2428 2200 1726 1305 1656 2125 1959 1589 1196 2020 2021 2022 2023 2024 rounds companies Data source: Dealroom The number of unique investors backing female-founded startups remains strong Number of unique investors that have participated in at least one investment round of a female-founded company Europe 2255 2369 2177 1884 1299 2020 2021 2022 2023 2024 Data source: Dealroom Both VC and angel investors see more female-founded companies in their dealflow Thinking about your dealflow, what change in the number of companies co-founded by women have you seen in the past 12 months? Significantly more More No change Fewer Significantly fewer Source: Female Innovation Index Survey 2025 angel investors Add a Title 6% Add a Title 50% Add a Title 39% Add a Title 3 % Add a Title 1% VC investors Add a Title 15% Add a Title 31% Add a Title 37% Add a Title 15 % Add a Title 2% VC and angel investors see higher-quality female-founded companies in their dealflow How does the average quality of deal flow of female-founded companies compare with that of last year? angel investors Add a Title 6% Add a Title 47% Add a Title 38% Add a Title 9% Add a Title 0% VC investors Add a Title 6% Add a Title 40% Add a Title 51% Add a Title 3% Add a Title 0% Significantly higher Higher No change Lower Significantly lower Source: Female Innovation Index Survey 2025 'In the last 12 months, we haven't seen a worth mentioning change in the proportion of female led companies we interacted with, however we are excited to note that we are close to 2 companies that we could back in the next 2-3 months! We have already backed strong performing female led startups like Simpler.so and I am pretty sure in 2025 we'll back more.' Apostolos Apostolakis General Partner VentureFriends 89% 11% Early-stage female founders raised in venture capital in 2024 0.66B in venture capital in 2024 5.1B Growth-stage female founders raised Note: Early-stage defined as up to €5M in total funding, growth-stage as €5M+ in total funding. Data source: Dealroom The majority of female founders prioritise alignment of vision when choosing investors, while early-stage founders value existing relationships Why did you choose your latest investor(s)? female founders Existing relationship Alignment of vision Industry expertise Investor reputation Size of investment Deal terms Follow-on capability Operational support Diverse team Add a Title 31% Add a Title 27% Add a Title 24% Add a Title 15% Add a Title 13% Add a Title 11% Add a Title 11% Add a Title 11% Add a Title 2% Source: Female Innovation Index Survey 2025 early growth Add a Title 10% Add a Title 46% Add a Title 20% Add a Title 30% Add a Title 13% Add a Title 12% Add a Title 24% Add a Title 10 % Add a Title 2% Female founders at both early and growth stages find investor referrals the most valuable form investor support What investor support would you find most valuable? female founders Referrals to investors Business advice Operational support Exit planning Marketing & PR Legal & compliance Technical support Recruitment Premises Add a Title 72% Add a Title 51% Add a Title 29% Add a Title 23% Add a Title 21% Add a Title 1 4% Add a Title 1 3 % Add a Title 10 % Add a Title 4% early growth Add a Title 60% Add a Title 34% Add a Title 33% Add a Title 19% Add a Title 20% Add a Title 22% Add a Title 12% Add a Title 13% Add a Title 0% Source: Female Innovation Index Survey 2025 'Our investors have been invaluable in refining our growth strategy. We wanted investors who would provide not just capital but also help us navigate long-term decisions and align deeply with our mission. Rodinia is not just about producing clothing—it’s about tackling industry challenges like overproduction and pollution, and our investor's commitment to sustainability has been key in driving us forward.' Trine Young Rodinia Generation, Denmark Raised a €3m Seed round in April The number of female-founded Seed/Pre-Seed companies receiving funding significantly declines Number of European female-founded companies backed at early and growth stages Europe 205 1676 Seed/Pre-Seed Series A+ 391 2038 369 1834 307 1419 251 1054 2020 2021 2022 2023 2024 Data source: Dealroom The number of funding rounds for female-founded companies declines at most stages, bigger rounds remain resilient, with mega-rounds growing Total number of investments into female-founded companies by stage Europe $0 - $1M (Pre-Seed) $1M - $4M (Seed) $4M - $15M (Series A) $15M - $40M (Series B) $40M - $100M (Series C) $100M - $250M (Mega) $250M+ (Mega+) 1366 1598 1359 1027 784 2020 2021 2022 2023 2024 317 440 476 392 270 2020 2021 2022 2023 2024 138 241 235 203 158 2020 2021 2022 2023 2024 67 42 82 89 56 2020 2021 2022 2023 2024 28 21 45 32 26 2020 2021 2022 2023 2024 2 15 9 7 10 2020 2021 2022 2023 2024 2 8 4 2 1 2020 2021 2022 2023 2024 Data source: Dealroom Early-stage venture capital investment in female-founded companies is down, Series C holds steady, mega rounds see an increase in capital invested Total venture capital invested (€B) into female-founded companies by stage Europe $0 - $1M (Pre-Seed) $1M - $4M (Seed) $4M - $15M (Series A) $15M - $40M (Series B) $40M - $100M (Series C) $100M - $250M (Mega) $250M+ (Mega+) 183 244 187 135 95 2020 2021 2022 2023 2024 581 816 920 713 506 2020 2021 2022 2023 2024 917 1683 1639 1394 1131 2020 2021 2022 2023 2024 1497 1108 2449 1759 1475 2020 2021 2022 2023 2024 1425 922 1671 1959 1182 2020 2021 2022 2023 2024 1881 1293 795 1127 2020 2021 2022 2023 2024 280 529 2243 1288 595 243 2020 2021 2022 2023 2024 Data source: Dealroom Investment deal size for female-founded companies is growing, with an average increase of 7% across all stages from last year Median size (€M) of venture capital deals into female-founded companies by stage Europe Seed Series A Series B Series C+ 1.8 2.0 2.0 2.0 2.0 1.8 1.9 2 1.8 2 2020 2021 2022 2023 2024 8.2 9.6 10 10 9.8 7.8 9.1 9.6 10 9.4 2020 2021 2022 2023 2024 15.8 24.9 26.0 17.8 22.0 17.7 16.9 21 17.8 19.1 2020 2021 2022 2023 2024 34 68.2 50.0 27.3 26 36.0 24 48 54 30 2020 2021 2022 2023 2024 2023 2024 Data source: Dealroom The time to close a funding round shortens for both early- and growth-stage female founders How long did it take you to close your latest financing round? 4.6 months the time it took early-stage female founders to close their latest financing round in 2024 5.2 months the time it took early-stage female founders to close their latest financing round in 2023 Source: Female Innovation Index Survey 2025 5.8 months the time it took growth-stage female founders to close their latest financing round in 2024 6.3 months the time it took growth-stage female founders to close their latest financing round in 2023 'There was a huge change when we started our round. In our initial discussions, there was skepticism: Is this a niche market? Can you really measure certain diseases? Could this team build a global company? But once we secured our first interested investor, everything started to move.' Jana Buzkova Nadmed, Finland Raised a €3.5m Series A round in August Slow fundraising pace is the top challenge for early and growth-stage founders What investor support would you find most valuable? female founders Slow fundraising pace Gaining investor traction Managing workload Meeting investor expectations Dealing with rejections Managing cashflow Lack of investor feedback Complexity of due diligence Managing team dynamics Source: Female Innovation Index Survey 2025 Add a Title 51% Add a Title 35% Add a Title 32% Add a Title 28% Add a Title 20% Add a Title 17% Add a Title 1 6% Add a Title 10 % Add a Title 4% early growth Add a Title 39% Add a Title 23% Add a Title 41% Add a Title 20% Add a Title 5% Add a Title 22% Add a Title 12% Add a Title 17% Add a Title 7% 'Being an AI-centric company has led to a mixed experience with fundraising. On one hand, many VC investors wanted to speak with us during the process. However, there seemed to also be a lot of scepticism, with investors pressing us more to validate the defensibility of our solution.' Aurora Maggio Zefi.AI, Italy Raised a €1.6m Seed round in May Coming up Impact idea + capital + scale Who are the visionary founders shaping Europe's innovation landscape? What does it take to reach the peak of the innovation funnel? Go to Impact Network outreach is the top strategy for VCs and angel investors to attract female-founded dealflow What are your key strategies to attract female-founded dealflow? Add a Title 75% Add a Title 71% Add a Title 70% Add a Title 29% Add a Title 14 % Add a Title 0% Source: Female Innovation Index Survey 2025 Network outreach Demo days Networking events Direct outreach Social media outreach Intelligence software angel investors VC investors Add a Title 66% Add a Title 31% Add a Title 36% Add a Title 25% Add a Title 36% Add a Title 11%

Impact idea + capital + scale Funding at scale is what transforms promising ideas into global game-changers. When investment reaches a critical mass, it drives widespread adoption, fuels rapid expansion, and enables startups to create lasting economic and social impact. Scaled funding empowers companies to hire and develop top talent, enter new markets, and build infrastructure that sustains long-term growth. This ripple effect doesn’t just benefit individual businesses—it accelerates technological progress, ultimately shaping the future at a much larger scale. The Fifty Innovators List 2025 Median size of the funding rounds of the female-founded companies in the Fifty Innovators List €52M Virginia Morello Antag Therapeutics Marta Sjogran Paebbl Elise de Reus Cradle Susanna Campbell Syre Celia Belline Cilcare Oana Jinga Dexory Shrestha Chowdury Razor Brune de Linares Akur8 Lilian Schwich Cylib Helene Huby The Exploration Company Lisa Smith Prewave Anna Westling Sana Labs Catherine Wines WorldRemit Somayeh Taheri UrbanChain Shelley Copsey FYLD Kate Hofman GrowUp Farms Nora Khaldi Nuritas Dr Elina Burglund Scherwitzl Natural Cycles Diliara Lupenko Impress Daniela Marino Cutiss Catherine Pickering IOnctura Go to the analysis *In memory of Catherine Wines 50 female-founded companies in Europe that raised the biggest funding rounds in 2024 Company Round size (€M) Round Sector Country Data source: Dealroom Company profiles 145M 7.62Y The biggest round (€) raised Average company age Top sectors 8% Energy 40% Health 12% Food 4% Transport 14% Fintech Top HQ locations 26% United Kingdom 16% France 10% Sweden 10% Germany 8% Spain Founder profiles 81% founders on the Fifty Innovators List have a scientific background Female-only vs gender-mixed teams female-only Add a Title 9% gender-mixed Add a Title 91% Solo founder vs founding team solo Add a Title 2% team Add a Title 98% Founder age group Founder education 20 - 30 years old 30 - 40 years old 40 - 50 years old 50 - 60 years old 60 - 70 years old Add a Title 0% Add a Title 31% Add a Title 41% Add a Title 22% Add a Title 2% Masters degree PhD Bachelors degree MBA Lower than Bachelors Add a Title 38% Add a Title 32% Add a Title 22% Add a Title 5% Add a Title 0% Data source: Dealroom 40% increase in the number of European female-founded companies nearing unicorn status Female-founded companies in Europe nearing a $1B valuation female-founded near-unicorns in 2023 10 female-founded near-unicorns in 2024 14 View the near-unicorns list Data source: Dealroom Three new female-founded companies achieve unicorn status, a 200% increase from last year Female-founded companies with unicorn status, €1B+ valuation Europe 7 14 20 21 24 2020 2021 2022 2023 2024 View the unicorns list Data source: Dealroom Coming up Deeptech & AI Deep dive Who are the founders solving some of the hardest problems with tech? What are the key areas of innovation with AI? Go to Deeptech & AI M&A exits are on the rise, with an 11% increase in exits for female-founded companies Number of M&A transactions involving female-founded companies Europe 38 72 102 100 111 2020 2021 2022 2023 2024 View the M&A list Data source: Dealroom Female-led IPOs are picking up pace, with three IPOs added this year Number of female-founded companies that exited through an IPO Europe 6 12 2 1 3 2020 2021 2022 2023 2024 View the IPOs list Data source: Dealroom

By sector Funding levels vary significantly by sector. Investors tend to prioritise sectors with faster scalability and clear market demand, leading to disparities in how innovation is financed across different industres. 71% B2B 21% B2C B2B female-founded companies secure the majority of venture capital investment venture capital raised by B2B female-founded companies 71% venture capital raised by B2B2C female-founded companies 21% venture capital raised by B2C female-founded companies 8% 8% B2B2C Europe 2024 View detailed breakdown Data source: Dealroom Access to funding is believed to be the key inhibitor of innovation for female founders across all sectors What do you believe are the greatest inhibitors of innovation in your sector? 51% 3% of female founders across all sectors believe that access to funding is key for driving innovation within their sectors of female founders across all sectors believe that access to funding is not important for driving innovation within their sectors View responses in detail Source: Female Innovation Index Survey 2025 'The future of the space sector over the next 10 years is both uncertain and full of potential. I compare it to the early days of computing when few could have imagined a world where everyone owned a personal computer. We are at a similar turning point in space innovation. Our technology is modular and scalable. and our mission is to push boundaries and redefine what’s possible in the space industry.' Sara Correyero Plaza Ienai Space, Spain Raised a €3.9m Seed round in June Health, cybersecurity, and deep tech are the key sectors ripe for AI adoption, according to investors What sectors pose the highest opportunity to benefit from emerging technologies over the next 12 months? Add a Title 69% Add a Title 45% Add a Title 40% Add a Title 34% Add a Title 20% Add a Title 19% Add a Title 19 % Add a Title 1 2% Add a Title 5% angel investors VC investors Health Deeptech Data & analytics Cybersecurity Robotics Fintech Sustainability Education Food Add a Title 56% Add a Title 86% Add a Title 22% Add a Title 69% Add a Title 6% Add a Title 23% Add a Title 22% Add a Title 3% Add a Title 7% Source: Female Innovation Index Survey 2025 'I believe manufacturing, logistics and procurement will benefit the most from AI in the next 12 months. Currently, these sectors are ripe for innovation as we are seeing a huge shortage of labour, increasing geopolitical tension leading to chaotic supply chains and increasing cost for consumers.' Sri Ayangar Investor Lakestar Health is both the most popular and the most funded sector for female entrepreneurs Total venture capital invested (€M) in female-founded companies by sector vs. the number of female-founded companies in a given sector Europe, 2024 Capital invested (€M) Number of companies Health Fintech Enterprise Software Food Energy Wellness & Beauty Transportation Robotics Chemicals Add a Title 2059 Add a Title 1013 Add a Title 959 Add a Title 591 Add a Title 573 Add a Title 372 Add a Title 271 Add a Title 227 Add a Title 211 View all sectors here Health Enterprise Software Marketing Education Recruitment Fintech Wellness & Beauty Food Fashion Add a Title 61 Add a Title 55 Add a Title 46 Add a Title 34 Add a Title 32 Add a Title 29 Add a Title 29 Add a Title 25 Add a Title 24 Data source: Dealroom 'In the LegalTech space, we’re tackling outdated processes for certifying and notarising documents. The future of this field will likely see further advancements in third-party verification and document content validation. AI and emerging technologies like blockchain will enhance these processes, but human involvement will remain necessary for the foreseeable future.' Aida Lutaj Legitify, Ireland Raised a €1.5m Seed round in March 27% Heath 13% Fintech Health, fintech, food and enterprise software are the most funded sectors of female-founded companies venture capital raised by female-founded companies in the health sector 27% venture capital raised by female-founded companies in the fintech sector 13% venture capital raised by enterprise softwarefemale-founded companies 12% 12% Enterprise software Europe 2024 venture capital raised by female-founded companies in the food sector 8% 8% Food View other sectors in detail Data source: Dealroom Coming up By location What does the funding landscape for female entrepreneurs look like across different countries in Europe? How do funding opportunities for female innovators vary from country to country? Go to By location Music, wellness and beauty, and robotics experience the highest growth in funding Change in total venture capital into female-founded companies invested (%) per sector, 2023 vs 2024 Europe, 2023 vs 2024 Music Wellness & Beauty Robotics Food Manufacturing equipment Transport Legal Dating Gaming Media Event tech Semicond. View all sectors here Data source: Dealroom Add a Title -67 % Add a Title -76 % Add a Title 8 3% Add a Title -8 4% Add a Title -8 5% Add a Title -8 7% Add a Title +1337% Add a Title +414% Add a Title +212% Add a Title +212% Add a Title +80% Add a Title +63%

Idea Every successful company first started as an idea. Without ideas, there is no investment. Without investment, there is no innovation. Explore which sectors attract the most female founders and what motivates them to pursue entrepreneurship. Enterprise software, marketing, and education are the most popular sectors for new female-founded companies Key sectors of companies created in 2024 Europe gender-agnostic Data source: Dealroom 12% Enterprise Software 13% Enterprise Software 5% Recruitment 6% Energy 6% Beauty 11% Marketing 8% Marketing 9% Health 8% Fintech 6% Education 7% Recruitment 9% Education 6% Food 6% Fintech female-founded 'My journey began in public health, AI, and mathematics. In Washington, DC, I studied addiction patterns in African American communities. I met my co-founder through an entrepreneur. With her expertise in pharmacy, chemical engineering, and AI pharmacology, we saw an opportunity to better visualise how drugs affect the brain—setting us on a path to disrupt the traditional pharmaceutical model.' Iris Maréchal Theremia, France Raised a €3m Seed round in November A problem to solve and a drive to innovate are the biggest motivators for female founders to start their companies What motivated you to start your company? female founders A problem to solve Drive to innovate Passion for industry Societal impact Personal growth Desire for independence Financial goals Frustration with my job Fulfilling legacy Add a Title 80% Add a Title 50% Add a Title 42% Add a Title 41% Add a Title 34% Add a Title 2 7% Add a Title 18 % Add a Title 11 % Add a Title 10 % Source: Female Innovation Index Survey 2025 early growth Add a Title 69% Add a Title 43% Add a Title 24% Add a Title 42% Add a Title 35% Add a Title 22% Add a Title 5% Add a Title 20% Add a Title 13% Investor appetite for emerging tech is growing among both VC and angel investors Compared to 12 months ago, has there been any change in your appetite to invest in companies leveraging emerging technologies? Significantly higher Higher No change Less Significantly less Source: Female Innovation Index Survey 2025 angel investors Add a Title 10 % Add a Title 34% Add a Title 36% Add a Title 1 8% Add a Title 3% VC investors Add a Title 21% Add a Title 35% Add a Title 44% Add a Title 0% Add a Title 0% 'I never aimed at becoming a founder. My work has spanned various aspects of building quantum tech, including writing the national agenda for quantum technology in the Netherlands. Transitioning from technology development at universities to the startup space felt like a natural progression, and I fully embraced it!' Ingrid Romijn Q*BIRD, Netherlands Raised €2.5m in May Unfunded Funded (Non-VC) 8% Enterprise Software 7% Food 9% Health 9% Fashion 8% Marketing 7% Education 7% Beauty 11% Enterprise software 4% Beauty 20% Health 8% Energy 8% Education 6% Marketing 5% Transportation Health and enterprise software leading sectors for unfunded and non-VC backed female-founded companies Key sectors of unfunded or funded but non-VC backed female-founded companies Europe Data source: Dealroom Coming up Innovation idea + capital What does the funding landscape for female entrepreneurs in Europe look like, and how is it evolving? Go to Innovation

By location Funding availability varies widely depending on location. Local regulatory environments, market maturity, and investor networks play a key role in shaping how and where funding is distributed, creating disparities in access to capital across regions and therefore slower or faster innovation. The proportion of all venture capital deployed into female-founded companies by top five countries in Europe in 2024 71% United Kingdom, France, and Germany lead the countries with the highest venture capital investment into female-founded companies Total venture capital (€M) invested by venture capital firms per country Europe, 2024 UK France Germany Switzerland Netherlands Denmark Spain Italy Belgium Sweden Luxembourg Finland Austria Ireland Norway Portugal Estonia Poland Czechia Lithuania 1541 1072 708 331 296 220 231 121 147 342 Go to country specific analysis Data source: Dealroom female-founded 3 257 85 104 160 35 37 4 9 7 agnostic 14765 7121 7493 2800 2410 1084 1850 1032 1115 2460 143 857 491 985 931 402 257 145 247 86 12% €5.75B Finland leads the way, with a third of total venture capital invested in the country going to female-founded companies The average proportion of venture capital invested in female-founded companies across Europe Europe 2024 Data source: Dealroom Countries with above European average portion of venture capital invested in female-founded companies Europe, 2024 Finland Denmark Norway Austria France Estonia Sweden Belgium 30% 20% 17% 17% 15% 14% 14% 13% Data source: Dealroom 'Reflecting on our fundraising journey, we’ve noticed a clear difference: US investors are bullish, seeking massive potential, while European investors tend to be more conservative and risk-averse. However, even generalist funds are now integrating sustainability strategies. As a SaaS business, we aren’t limited to climate tech funds—our investors value capital efficiency across various sectors.' Helen Tacke Cozero, Germany Raised a €6.5m Series A round in April The majority of ecosystem players are less optimistic about the future of European innovation Compared to 12 months ago, are you more or less optimistic about the future of European innovation? Source: Female Innovation Index Survey 2025 female founders startup employee angel investors VC investors LP investors Add a Title 4% Add a Title 27% Add a Title 32% Add a Title 45% Add a Title 5% Significantly more More No change Less Significantly less Add a Title 5% Add a Title 30% Add a Title 14% Add a Title 49% Add a Title 2% Significantly more More No change Less Significantly less Add a Title 6% Add a Title 35% Add a Title 20% Add a Title 38% Add a Title 0% Significantly more More No change Less Significantly less Add a Title 6% Add a Title 35% Add a Title 20% Add a Title 38% Add a Title 0% Significantly more More No change Less Significantly less Add a Title 0% Add a Title 44% Add a Title 25% Add a Title 31% Add a Title 0% Significantly more More No change Less Significantly less Female founders believe it is harder to attract technical talent in Europe than it was twelve months ago Compared to 12 months ago, do you believe is it easier or harder to attract technical talent for European founders? 63% Source: Female Innovation Index Survey 2025 of female founders believe it is harder to attract technical talent 52% of angel and venture capital investors believe it is harder to attract technical talent The majority of female founders prioritise alignment of vision when choosing investors, while early-stage founders value existing relationships What do you believe are the key characteristics of an innovation friendly venture ecosystem? Access to funding Access to global markets Access to top talent Government support Access to mentorship Adaptive regulatory environment Access to research institutions High competition Source: Female Innovation Index Survey 2025 Add a Title 82% Add a Title 43% Add a Title 34% Add a Title 32% Add a Title 2 2% Add a Title 19 % Add a Title 5% female founders investors Add a Title 21% Add a Title 46% Add a Title 65% Add a Title 31% Add a Title 28% Add a Title 21% Add a Title 4% 'At Metyos, we seek technical skills from diverse disciplines, ranging from chemistry to AI. With few people possessing both technical expertise and an innovative mindset, hiring has been—and will likely remain—our biggest challenge, regardless of the funding environment.' Olga Chashchina Metyos, France Raised a €2.3m Pre-Seed round in March Download detailed country-specific sheets with more granular data on investment in female-founded companies By location What's included Total size of fresh capital (€B) raised by venture capital % of female-founded companies with first time venture capital investment % of venture capital raised by female-founded companies out of the total deployed in 2024 Number of companies that raised venture capital Capital invested (€M) into female-founded companies Total capital (€M) invested by venture capital firms Number of female-founded companies that raised venture capital Top sectors of unfunded, not venture capital backed female-founded companies Top sectors of funded, venture capital backed female-founded companies Female-founded companies that raised 10 biggest venture capital rounds Spotlight Select a country Austria Denmark Estonia France Ireland Belgium Czechia Finland Germany Italy Lithuania Netherlands Poland Spain Switzerland Luxembourg Norway Portugal Sweden United Kingdom Data source: Dealroom Coming up Meet the team Meet the team behind the Index, who have brought to you the insights about the shaping the innovation landscape for female entrepreneurs across Europe Go to Meet the team

Deeptech & AI Backing founders who tackle the world’s biggest challenges is not just an opportunity—it’s a necessity. From climate change to healthcare and financial inclusion, entrepreneurs are developing groundbreaking solutions that drive meaningful change. Investors who support these visionaries early on not only fuel innovation but also position themselves at the forefront of industries poised for massive impact and returns. Deeptech funding The portion of all venture capital that went to female-founded deeptech startups in 2024 33% Albane Dersy Inbolt Ariane Cruz Gomes baseimmune Francesca Cordeiro NOVAI Arelys Sosa DREV Bianca Forte SugarOx Deimena Drąsutytė HERlab Jessica Corry Xterna The proportion of founders with a scientific background who raised the fifty biggest venture capital rounds in 2024 81% Deeptech founders Synthetic biology and drug development are the most frequently funded deeptech areas in female-led companies Deeptech technologies with the highest number of investment rounds Europe, 2024 Auto. Mobility gender-agnostic Drug Development Gen AI Photonics tech Drug Dev. Synthetic Biology Carbon Capture Generative AI Carbon Capture Auto. Mobility Fermentation Hydrogen Quantum Synthetic Biology Data source: Dealroom female-founded Investors anticipate AI and quantum computing to get most venture capital this year What emerging technologies do you believe will attract the most venture capital investment over the next 12 months? VC and angel investors Artificial intelligence Quantum computing Advanced robotics Nanotechnology Internet of Things Blockchain Augmented Reality 3D printing Source: Female Innovation Index Survey 2025 Add a Title 100% Add a Title 34 % Add a Title 10 % Add a Title 2 1% Add a Title 19 % Add a Title 30 % Add a Title 18 % Add a Title 29 % angel investors VC investors Add a Title 71% Add a Title 68% Add a Title 44% Add a Title 40% Add a Title 39% Add a Title 13% Add a Title 1 3% Add a Title 10% Investment in health, energy, robotics and food is on the rise for female-founded deeptech startups Venture capital raised (€M) by female-founded companies across key deeptech sectors Europe health energy robotics food 1990 4320 2940 2270 2710 450 570 610 460 630 2020 2021 2022 2023 2024 1420 4410 5420 5990 3410 140 300 480 280 340 2020 2021 2022 2023 2024 560 1820 1750 1300 2100 40 60 330 170 230 2020 2021 2022 2023 2024 660 1070 820 890 240 770 290 350 360 250 2020 2021 2022 2023 2024 Data source: Dealroom 'Our innovations aim to solve previously unsolvable problems and enhance existing vaccines to make them more effective and easier to deploy—these two goals are central to our mission. We are proud to contribute to these advancements in public health.' Ariane Cruz Gomes Baseimmune, United Kingdom Raised £9m in February The vast majority of female-founded companies leverage AI in their business Do you currently leverage AI for your company? 79% of early-stage female-founded startups use AI in their business Source: Female Innovation Index Survey 2025 75% of growth-stage female-founded startups use AI in their business Female founders leverage AI primarily for product innovation and content creation How do you currently use AI? female founders Product innovation Content creation Marketing Market research Predictive analytics Customer support Sales generation Legal / Compliance Recruitment Add a Title 45% Add a Title 44% Add a Title 32% Add a Title 26% Add a Title 20% Add a Title 17% Add a Title 18% Add a Title 13 % Add a Title 10 % early growth Add a Title 42% Add a Title 41% Add a Title 36% Add a Title 23% Add a Title 19% Add a Title 18% Add a Title 20% Add a Title 8% Add a Title 8% Source: Female Innovation Index Survey 2025 'In the coming years, AI in healthcare, science, and biotech will revolutionise human well-being - curing diseases faster, personalising treatments, and unlocking scientific breakthroughs. It’s not just innovation; it’s a leap toward longer, healthier lives for millions worldwide.' Adrian Locher General Partner Meantrix AI and GenAI applications dominate areas of innovation within AI for female founders The areas of AI innovation by female-founded companies by the number of investment rounds Europe, 2024 Data source: Dealroom GenAI Applications Model Makers AI Applications Over the past five years the investment into female-founded companies building AI applications has trippled Venture capital raised (€M) by female-founded companies across key deeptech sectors Europe AI applications GenAI applications Model makers 290 590 1180 1640 3730 94 116 204 294 295 2020 2021 2022 2023 2024 120 320 680 12100 2780 36 58 75 138 110 2020 2021 2022 2023 2024 4300 9110 9720 5942 948 733 439 1061 1276 1143 2020 2021 2022 2023 2024 Data source: Dealroom Coming up By sector What does the funding landscape look like across different sectors of innovation for female entrepreneurs in Europe? Go to By sector Synthetic biology, generative AI, and drug development are the most funded deeptech areas in female-led companies Deeptech technologies with the most venture capital raised Europe, 2024 Data source: Dealroom gender-agnostic Launch Vehicles Drug Development Generative AI Synthetic Biology Carbon Capture Fermentation Carbon Capture Generative AI Autonomous Mobility Nuclear Fusion Quantum Computing Synthetic Biology Hydrogen Drug Dev. female-founded

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. 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

Explore the current landscape of investment in female-led funds across Europe, delving into the latest statistics on backing female emerging fund managers. This chapter sheds light on their professional backgrounds, aspirations, and the unique challenges they face in today's market. Venture Capital Fundraising Slowdown Fundraising for female emerging fund managers has become increasingly challenging in a high-interest-rate environment, as limited partners have more options to deploy their capital into less risky assets. The rise in interest rates has made fixed-income instruments and other traditional investment vehicles more attractive, offering competitive returns with lower risk compared to the speculative nature of venture investments. This shift in investment preference has led to a tighter capital pool for venture capital firms and especially for emerging fund managers, as LPs reassess their asset allocation strategies in favour of stability and predictable returns. As a result, female emerging fund managers in Europe are facing higher LP expectations in relation to their track record, thesis, and the uniqueness of their deal flow. Key insights 86% of female emerging fund managers focus on early, Pre-Seed or Seed stage investments. The vast majority of female emerging fund managers choose the Pre-Seed and Seed investment stages as their investment focus. 66% of female emerging fund managers' funds have specilist focus. From our analysis, two-thirds of female emerging fund managers are looking to raise a specialist fund (66%), with sustainability (19%), deeptech (13%), data and AI (12%), and health (8%) being the top focus areas for their investment thesis. Investors 2 2.1 The Funnel Female emerging fund managers adapt to the current market We have analysed survey responses from female emerging fund managers in Europe to gain a better understanding of the funnel of female emerging fund managers who are either currently fundraising or looking to fundraise for their fund in the next 12 months. From our analysis, two-thirds of female emerging fund managers are looking to raise a specialist fund (66%), with sustainability (19%), deeptech (13%), data and AI (12%), and health (8%) being the top focus areas for their investment thesis. The vast majority of female emerging fund managers choose the Pre-Seed and Seed investment stages as their investment focus. The most frequent thesis 34% Generalist Specialist 66% Sustainability 19% Deeptech 13% Data & AI 12% Health 8% Growth: Series A - Series C 14% Early: Pre-Seed - Seed 86% Late: Series C+ 0% General Partner, altitude Videesha Boeckle Fundraising United Kingdom "I'm holding a very optimistic view on 2024. In 2023, when the fundraising market dramatically slowed down, many emerging fund managers came together and started helping each other. I believe we are going to see that sentiment continue into 2024." VC and angel investment backgrounds are the most common for European female emerging fund managers We have also analysed the backgrounds of female emerging fund managers who responded to our survey to gain a better understanding of their profiles and ambitions. Over two-thirds of our respondents are first-time fund managers, and the vast majority of them have investment backgrounds, with 58% as angel investors, 42% as VC investors or both. Emerging fund manager profile analysis 26% Not-first time First-time 74% Emerging fund manager background I have been an angel investor 58% 42% I have been a VC investor I have worked in a startup / scaleup 25% 17% I have been a startup founder I have tech / engineering background 17% Notes: Emerging fund managers defined as those who are within their first three to four funds. All emerging fund managers, regardless of their fundraising stage. Source: LinkedIn Copy link Like Download the Report Founding Partner, MBA Ventures Monica Aznar Fundraising United Kingdom "We delayed our fundraising until we had a substantial number of portfolio companies – more than ten – to demonstrate our strong deal flow. This is crucial, especially in the current market where there is a lot of scepticism towards venture capital, and even more so towards first-time managers. We wanted to prove that we have a unique niche and access to exceptional founders before we began external fundraising." Female emerging fund managers in Europe aim to raise subsequent funds with a five-year AUM target of over €70m In our survey, we also aimed to gain insight into the ambitions of female emerging fund managers today. Despite the macro fundraising conditions, female emerging fund managers aspire to manage over €70 million in assets in the next five years on average. What is your 5 year target AUM? (€) Female emerging fund managers Notes: Emerging fund managers defined as those who are within their first three to four funds. All emerging fund managers, regardless of their fundraising stage. Source: LinkedIn Copy link Like Download the Report 2.2 The LP Mindset Limited partners reassess their venture capital strategies In a high-interest rate environment, Limited Partners are reassessing their capital allocation and rethinking their portfolio strategies. Looking for the same level of returns, venture capital class is no longer one of the most attractive targets for investors looking for higher returns. Key insights LP investors see more female-led fund investment opportunities. 55% of limited partners that completed our survey have seen a much larger number of female-led funds approaching them for investment. Managing Partner, Isomer Capital Joe Schorge United Kingdom "The macro and geo shifts of the past year have not greatly impacted our strategy or evaluation criteria. Before the market correction, we already had various absolute guidelines on valuations/pricing, investment sizing, geo, etc., and therefore have not needed to change much. Like many investors, we do tend to focus more on liquidity and exit scenarios lately, since exit markets are generally less buoyant. We perhaps also put a bit more emphasis on investing with people who have experienced multiple business cycles and therefore may be better equipped to manage through the current market turbulence." Over a third of European venture capital limited partners track the number of female emerging fund managers going through their deal flow In our survey, we asked European limited partners, who invest in venture capital, whether they track the number of female-led funds in their deal flow to gauge whether gender has any significance to them. Interestingly, 34% of the Limited Partners who answered our survey claimed that their funds track the number of female-led funds in their deal flow. Does your fund track a number of funds (co)led by women in its deal flow? LP investors say that their fund tracks a number of funds (co)led by women in its deal flow 34% Notes: Source: LinkedIn Copy link Like Download the Report LP investors see more female-led fund investment opportunities We asked European LP investors about their observations regarding the number of female-led funds going through their investment pipelines. Interestingly, a significant majority, 55%, of LPs have seen a much larger number of female-led funds approaching them for investment. Thinking about your pipeline, what change in the deal flow of fund (co)led by women have you observed in the past 12 months? LP investors only Notes: Source: LinkedIn Copy link Like Download the Report Managing Partner Blue Future Partners Gregor von dem Knesebeck Germany "When it comes to 2023, for us, there has not really been a change with regards to the investment criteria: we focus heavily on the quality, complementarity and diversity of the teams we back. Also the investment hypothesis, track record and differentiation in access are important. But given the tough fundraising environments, we have been focussing more on assessing the capabilities of the managers we engage with and try to support on the fundraises to add as much value as possible to all our managers." LP investors are increasingly interested in backing more female-led GPs In our survey, we also aimed to gauge the appetite of LPs when it comes to backing more female-led funds in Europe. Interestingly, 39% answered that their fund has an increased interest in increasing their investment in female-led funds. In the past 12 months, what change, if any, have you seen in your fund’s appetite to invest in VC funds co-led by women GPs? LP investors only Notes: Source: LinkedIn Copy link Like Download the Report 21% of Limited Partners have a policy in place to increase the number of female-led funds in their portfolio When it comes to specific policies aimed at increasing the number of female-led funds in their portfolio, 21% of the surveyed LPs have implemented policies targeting improvements in gender-diversity. Does your fund have a policy in place to improve diversity in its portfolio? of LP investors say that their fund has a policy in place to improve diversity in its portfolio. 21% Notes: Source: LinkedIn Copy link Like Download the Report Chief Executive Officer, Tesi Pia Santavirta Finland "In 2023, what we have experienced as a fund investor, is that both in PE and VC the pace of capital deployment in funds has been dynamic and subject to various economic and market influences. There has been a slight slowdown in capital deployment as investors have become more cautious. This comes directly from the current economic factors such as economic growth and interest rates. Nevertheless, this has not affected our process of making new investment decisions. We have noticed, though, that the average fundraising period for funds has lengthened." Gender composition of a Venture Capital team plays a role in LP investment decisions In our survey, we aimed to better understand whether gender plays any role in LP investment decisions today. We asked them to reflect on three areas: Venture Capital partnership, Venture Capital team, and the gender composition of portfolio companies of funds that LPs invest in. Understandably, there are limitations for our conclusions given our sample size and potential confirmation bias. Subject to this, gender composition of a VC partnership plays the most significant role out of the three, with 58% of limited partners surveyed indicating that gender composition plays some role in their investment decisions. Just over half of the respondents saw the gender composition of investment teams having any significance and a meaningful 40% of respondents said that gender balance across investments made by funds in their portfolio is important for them. of LP investors say that gender composition of a Venture Capital Partnership team is part of their firm’s investment evaluation criteria 58% of LP investors say that gender balance across an investment team in a VC fund important for you 48% of LP investors say that gender balance across investments made by funds in their portfolio is important for them 40% Notes: Source: LinkedIn Copy link Like Download the Report 2.3 Funding Overview Up next Explore the current landscape of investment in female-led funds across Europe, delving into the latest statistics on backing female emerging fund managers. This chapter sheds light on their professional backgrounds, aspirations, and the unique challenges they face in today's market. Explore the chapter

Discover the latest insights on European venture capital investment levels. Gain a better understanding of the level of venture capital investment in European startups, regardless of founding team's gender. 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

Gain a deeper understanding of the levels of funding in female-founded companies across various sectors in Europe in 2023. Which sectors are most sought after by investors? In which sectors are female founders most prevalent? 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 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. 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. Female-founded B2B businesses received the largest portion of funding in 2023. 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. 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: Source: Dealroom LinkedIn Copy link Like Download the Report 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 LinkedIn Copy link Like Download the Report 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 LinkedIn Copy link Like Download the Report 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 LinkedIn Copy link Like Download the Report 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 LinkedIn Copy link Like Download the Report 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." Up next 1.6 Location in focus Gain insight into how subtle country-by-country differences shape the European funding landscape for female entrepreneurs. Gain a better understanding of the opportunities and prospects from a location perspective. Explore the chapter

Dive deeper into the state of funding for early-stage female founders in Europe, learn about their challenges and aspirations and understand better the early-stage investors' mindset. 1.3 From Inception Building from the ground up Early-stage startups present a unique opportunity for investors to support innovative ideas at their inception, often years before seeing their tangible impact. This phase, where often groundbreaking concepts take shape, is pivotal to turn ideas into reality. With fewer investment deals in 2023 and higher investor expectations, founders, especially those operating in sectors where proving customer traction is particularly hard, have been particularly impacted. In this chapter, we dive deeper into the ambitions of European early-stage female entrepreneurs and and the challenges they face, mapping out the investment totals and therefore the opportunities to back them in the later-stages of their development. Key insights Slow fundraising pace, workload and investor traction are top fundraising challenges for female founders in Europe. Slow fundraising pace has been the key fundraising challenge for 32% of the female founders that completed our survey. Managing the workload of the fundraising process is the second-most common challenge, with 29% of early-stage founders identifying it as a key obstacle. Austria, Netherlands and Estonia see the biggest proportion of freshly-backed companies founded by women. As much as 40% of all startups in those countries are newly-backed companies. 44% of angel investors see an improvement in deal flow quality of female-founded companies. Our survey reveals that 44% of angel investors see an improvement in deal flow quality of female-founded companies, with 4% noting a significant improvement. 53% of early-stage female founders find the fundraising process longer than expected. Our survey reveals that it takes on average over five months for early-stage female founders to raise funding. with 53% of female founders finding the fundraising process longer than expected. Early-stage VC investors see mild increase in the number of female-founded companies in their deal flow. while 13% of angel investors reported a significant surge in female-led startups, early-stage VC investors held a more modest view, with only 3% seeing a significant increase. This discrepancy suggests that there are more female founded deals at the the top of the funnel. Misalignment with investment thesis the key reason for not backing female-founded startups by 58% of VC investors. Additionally, 42% of VCs believe that the low number of companies they see and the quality of business propositions that do not meet their expectations are the reasons behind the lack of investments into female-founded companies over the past 12 months. Network is key for both angel and VC investors looking for deals with female-founded startups. while 13% of angel investors reported a significant surge in female-led startups, early-stage VC investors held a more modest view, with only 3% seeing a significant increase. This discrepancy might suggest that there are more female founded deals at the earliest stages of business formation. Total capital raised in 2023 by European early-stage female founders Total capital raised by European early-stage founders in 2023. €0.49B Notes: Early-stage founders' are defined as those who have raised total funding of €5 million or less to date. Source: Dealroom LinkedIn Copy link Like Download the Report Founder, The Landbanking Group Dr. Sonja Stuchtey $11m Seed round in October Germany "I'm not only passionate about sustainability, but I am also an experienced entrepreneur. I know why I'm doing what I am doing. Our angel investors have been great sparring partners throughout our journey. I appreciate having someone who questions and provides specific advice and suggestions. We are tackling a very difficult problem, and it will take time before we start seeing meaningful results. We have been incredibly fortunate to have investors on board who understand the immense potential of our solution and do not exert undue pressure for measurable results while we are laying the foundations of our business." Angel investor sentiment remains positive In our survey, we asked European angel investors, who are often the first backers of female entrepreneurs in Europe, about their views on the capital being deployed into these entrepreneurs. The majority of respondents believe that the current climate for fundraising for female founders is more favourable than it was twelve months ago, with just under 20% being less optimistic. Compared to 12 months ago, are you more or less optimistic when it comes to the amount of funding going to female-founded companies in Europe? Angel investors only Notes: Source: LinkedIn Copy link Like Download the Report President, Green Angel Ventures Nick Lyth United Kingdom "Early-stage investment is an excellent barometer for the future. The choices early-stage investors make reflect the world they want to see in the decades to come." Angel investors see more female-founded companies in their deal flow Our survey data finds that nearly half of angel investors that made at least one angel investment in the past year have seen an increase of female entrepreneurs in their deal flow over the past twelve months, with 9% of them seeing a significant uptick. 37% of angel investors report no change. Thinking about your pipeline, what change in the deal flow of companies (co)founded by women have you observed in the past 12 months? Angel investors only Notes: Source: LinkedIn Copy link Like Download the Report Angel Investor Nzube Ufodike United Kingdom "2023 began with cash flow and liquidity challenges for many companies. As a result, I decided to lean in a bit more to support my portfolio companies, particularly those that were in the middle of a fund raise. Buzzword du jour, "AI", also featured on our radar. Tough market conditions all round but fundraising with VCs remains a viable option for high quality companies." Angel investors see higher quality female-founded startups in their pipeline As much as the quantity of companies going through a deal pipeline might result in a higher number of companies being funded, it is really the quality of deal flow that is critical for actually making an investment. When asked about the quality of female founded companies they have seen over the past 12 months, angel investors report seeing a higher quality of deal flow. Our survey reveals that 44% of angel investors see an improvement in deal flow quality of female-founded companies, with 4% noting a significant improvement. 47% of angel investors see no change in deal flow quality and even though just under 10% angel investors say that the quality has actually worsened, our findings suggest a generally optimistic view of the quality of women-led startups in the angel investment pipeline. Thinking about your pipeline, what change in the quality of deal flow of companies (co)founded by women have you observed in the past 12 months? Angel investors only Notes: Source: LinkedIn Copy link Like Download the Report An increasing number of angel investors is keen on making more investments into female-founded companies Our overall positive findings regarding both the quality and quantity of deal flow of female-founded companies that angel investors see going through their pipeline might be attributed to another interesting trend. When asked about their proactivity in seeking investment opportunities in female-founded companies compared to last year, it is interesting to see that almost half of angel investors currently spend more time actively searching for investment opportunities into female-founded companies. Although 46% indicate no change in their level of proactivity, and just under 10% actually has been spending less time over the past year seeking deals with female founders, the overarching trend leans towards a moderately positive direction. This suggests that, despite a significant portion maintaining their existing investment efforts, there is a notable shift towards increased interest in female-founded companies among angel investors. In the past 12 months, have you spent more or less time proactively looking for investment opportunities into companies (co)founded by women compared to last year? Angel investors only Notes: Source: LinkedIn Copy link Like Download the Report Angel investor Sokhiba Mukhitdinova United Kingom "As a founder seeking angel investment in 2024, I would consider targeting those investors that can materially add value to your business. Those angels who have experience or are currently working in the industry related to your startup, can bring not only capital but also valuable industry knowledge, network of contacts and even help you with hiring. Getting smart capital for your startup has never been more important, when there is more emphasis put on sustainable growth." Network is key for angel investors looking for deals with female-founded startups For those angel investors who are proactively seeking more investment opportunities into female-founded startups, network seems to play the biggest role, with networking events and network outreach being preferred strategies for 57% of them. 33% of angel investors are also keen on seeing more startups at demo days, 29% of them prefer to leverage social media to increase their female-founder deal flow. Interestingly, more traditional methods like conferences and mentorship programs are not used by angel investors in their proactive outreach, with each scoring a bare 0%. Angel investors are also not keen on utilising intelligence software. What have been the key strategies used by you to find more companies (co)founded by women? Angel investors only Notes: Respondents had the option to select multiple answers. Source: LinkedIn Copy link Like Download the Report Austria, Netherlands and Estonia see the biggest proportion of freshly backed companies founded by women Despite the overarching trend of capital deployment slowdown, some countries were particularly active at the earliest stages of investment. Austria, the Netherlands, and Estonia were the top countries on the list with the highest proportion of female-founded startups that secured their first investment check. Share of female-founded companies (%) with first time investment per country, 2023 and earlier Tap on a bar to reveal the exact percentage Notes: Source: Dealroom LinkedIn Copy link Like Download the Report Angel investor Vera Baker France "I am one of those investors who are committed to investing their time and energy into supporting founders who are dedicated to building and creating meaningful businesses. I often see that female investors approach investing with a different mindset. We do not chase hype or think about short-term gains where we could exit an investment tomorrow and make money quick. Instead, our focus is on investing into our future and committing our resources to more meaningful causes. We're seeking long-term returns, not instant gratification." Fundraising gets harder for early-stage female founders Overall, the vast majority of female founders have come to experience the new market reality. From our survey it is clear that fundraising has become a lot harder for female entrepreneurs than it was 12 months ago. Both early-stage and growth stage female founders have been experiencing fundraising challenges due to the shifting market environment. In your opinion, is it easier or harder for female (co)founded startups to raise external capital in Europe now than it was 12 months ago? Female founders only Notes: 'Early-stage founders' are defined as those who have raised total funding of €5 million or less to date. Source: LinkedIn Copy link Like Download the Report It takes over five months for early-stage female founders to raise funding We asked early-stage female founders who raised capital in 2023, how long it took them to obtain angel or venture capital funding, from the first conversation with potential investors to signing a term sheet. On average, it currently takes just over five months for European female founders at the earliest stages of company building to secure funding. On average, it took early-stage founders to close a funding round in 2023 5.2 months Note: The duration is counted from the first fundraising conversation with the first investor to the signing of a term sheet. Source: LinkedIn Copy link Like Download the Report Early-stage female founders say it takes much longer than expected to raise funding By combining the actual duration of the process with female founders' expectations, we get a clearer picture of the fundraising experiences of female founders. In general, female founders who successfully secured funding in 2023 found the process more time-consuming than expected. A significant 53% of early-stage female founders said that it took longer than anticipated to secure funding. In contrast, only 17% found the process to be shorter than expected. The findings are consistent across different stages of company growth. Despite the ongoing economic downturn for the last twelve months, early-stage female founders find the fundraising process unexpectedly longer. Was your fundraising process shorter or longer than expected in 2023? Female founders only Notes: 'Early-stage founders' are defined as those who have raised total funding of €5 million or less to date. This category only includes founders who successfully closed a financing round in 2023. Source: LinkedIn Copy link Like Download the Report Founder, Consalio Felicia Mundhenke €1.2m Seed round in July Germany "Many startups that began fundraising at the start of the year had to adjust their expectations in relation to their initial valuations. A key realisation for me was that a company's valuation isn't solely based on its performance; it's also reflective of market conditions. When everyone’s valuation is going down, it is hard to defend your company’s case to be any different. Accepting this reality, a harsh truth about the sentiment in the investment ecosystem, was difficult for me. Despite putting my heart and tears into achieving 5x growth this year, I had to accept that my valuation also needed to be adjusted." Investment slowdown is affecting female-founded companies across all stages As we gather more data on investment deals from 2023, it becomes evident that the investment slowdown has been impacting female-founded companies across all stages, with the number of Pre-Seed and Seed-stage deals down by over 30% While 2020 and 2021 were peak years for startup investments, the number of investments in female-founded companies in 2023 mirrors the broader market conditions. Number of European female-founded companies backed at Pre-Seed and Seed stages per year, 2019 to 2023 Tap on the bar to reveal the exact number Notes: Source: Dealroom LinkedIn Copy link Like Download the Report Early-stage VC investors see a moderate uptick in the number of female-founded companies in their deal flow We surveyed early-stage VC investors to understand their perception of female-founded companies in their investment pipeline. Interestingly, while 13% of angel investors reported a significant surge in female-led startups, early-stage VC investors held a more modest view, with only 3% seeing a significant increase. This discrepancy might suggest that female founders find an easier access to angel investors than VC firms. Thinking about your pipeline, what change in the deal flow of companies (co)founded by women have you observed in the past 12 months? VC investors only Notes: Early-stage VC investors self-identified themselves as 'early-stage' in the survey. Source: LinkedIn Copy link Like Download the Report Founding Partner, VentureFriends Apostolos Apostolakis United Kingdom "Even though we have definitely seen an investment slowdown in 2023, the reality is that capable, strong founders building startups with good unit economics and growing nicely, are getting funded. I'm excluding AI because due to the current hype you could raise in that field even in the absence of traction. But putting AI aside, all other startups that have a good story, with solid underlying economics, are able to raise funds. The key is clarity: the business story needs to be clear, the path to profitability should be evident, and of course, the burn rate should not be excessively high compared to revenue. The times when startups with high burn rates and low traction could get funding are over." Early-stage VC investors report a moderate increase in the quality of female-founded companies they see Quality, even though subjective, is a good indicator of the expected number of companies getting funding. After all, we want to believe that only high quality companies, those with great potential and clear value propositions, should receive funding. When focusing on the quality of female-founded startups in their deal flow, 36% of VC investors surveyed say they see higher-quality companies in their deal flow. However, 57% of VC investors have not seen any significant quality improvement. How does the average quality go deal flow of companies (co)founded by women compare with that of last year? VC investors only Notes: Early-stage VC investors self-identified themselves as 'early-stage' in the survey. Source: LinkedIn Copy link Like Download the Report Limited deal flow, no fit with investment thesis, and low quality are key reasons for the lack of investments by early-stage VC investors We asked European early-stage investors who did not make any investments into female-founded companies in the past 12 months about the key reasons for not making deals with female-founded companies. Interestingly, a lack of alignment with their investment thesis scored 56% of all their responses which suggests missed opportunities on both sides of the equation. Additionally, 42% of VCs believe that the low number of companies they see and the quality of business propositions that do not meet their expectations are the reasons behind the lack of investments into female-founded companies over the past 12 months. Why do you believe your fund has not invested in any companies (co)founded by women in the past 12 months? VC investors only Notes: Respondents had the option to select multiple answers. Source: LinkedIn Copy link Like Download the Report General Partner, La Famiglia Judith Dada Germany "Your core strategy should always be to build a good business. Good businesses get funded in all market conditions. Today, the bar for getting funding is high, and so it is crucial for you to be brutally honest with yourself about what aspects of your business are working and what aren't. As a founder, both your runway and the time you invest in your business are precious, so dare to make bold decisions, as too many small changes here and there may not yield the outcome you want." "Availability of funding and access to investors are top fundraising challenges for female founders" - say early-stage VC investors In our survey, we also asked early-stage investors to share their perspectives on the key challenges they believe European female founders face when seeking funding. Access to investors and the availability of funding are the top challenges, said early-stage investors - each scoring over 60% of all responses. Interestingly, more transactional aspects of the fundraising process such as due diligence processes and deal terms negotiations received the lowest number of responses. In the past 12 months, which 3 aspects of the fundraising process do you believe female founders have found the most challenging? VC investors only Notes: Early-stage VC investors self-identified themselves as 'early-stage' in the survey. Source: LinkedIn Copy link Like Download the Report Founder, AssetFloow Katya Ivanova €1.5m Seed round in March Portugal "Over the past twelve months, building an AI software company brought unique challenges. Talent acquisition in the competitive AI market, especially in machine learning, data science, and software development, was our key focus and therefore in 2023 we spent significant time on creating a workplace culture that fosters creativity, diversity, and continuous learning. Staying at the forefront of AI innovation requires substantial research and development efforts." Early-stage founders point at slow fundraising pace, workload and investor traction as their key fundraising challenges We also asked early-stage female entrepreneurs who were looking for funding in 2023 about their fundraising challenges. Interestingly, a slow fundraising pace, consistent with our earlier findings about the duration of fundraising rounds, has been the primary concern for female entrepreneurs. Managing the workload of the fundraising process is the second-most common challenge, with 29% of early-stage founders identifying it as a key obstacle. Gaining investor traction makes the top-three list, and it's one of the aspects that clearly affect more early-stage founders, along with dealing with rejections, which also seems to primarily impact early-stage female founders. What were your top challenges as part of this fundraising round? Early-stage founders only Notes: Early-stage founders are defined as those who have raised a total of €5 million or less in funding to date. Only answered by founders who successfully closed a financing round or fundraised in 2023. Respondents had the option to select multiple answers. Source: LinkedIn Copy link Like Download the Report Founding Partner, Cavalry Ventures Claude Ritter German "I believe that nowadays more entrepreneurs are starting businesses for the right reasons. Back in 2020 and 2021, it was much easier to raise money, and entrepreneurs had the safety net of returning to their corporate jobs if their ventures didn't work out. Now the market is different. With corporate layoffs, leaving a stable job is a high risk. Those who are venturing into startups now must be the 'true believers’. For me, it's much more rewarding to work with people who are committed to their entrepreneurial journey despite the uncertainties." Early-stage female founders prioritise access to relevant networks and referrals to other investors from their existing backers As much as the fundraising process forms just a part of the company building journey, raising subsequent rounds might prove easier with the support of existing investors. Among female founders surveyed who had already been backed in the past, referrals to investors and access to a relevant network are the key areas female founders would like to receive extra support from their existing investors, with each scoring above 55%. Interestingly, more practical aspects of company building, such as legal and operational assistance, rank much lower on the list, with mental health support being one of the least prioritised by female entrepreneurs. What investor support would you like to receive for your company? Female founders only Notes: Early-stage founders are defined as those who have raised a total of €5 million or less in funding to date. Respondents had the option to select multiple answers. Source: LinkedIn Copy link Like Download the Report When looking for funding, early-stage female founders prioritise investors with shared vision and exiting relationship Fundraising, is a two-way relationship where investors and founders need to meet each other's expectations. We decided to delve into the perspectives of early-stage female founders who successfully raised funding in 2023 to understand why they chose their investors. Despite the current slow fundraising environment and limited funding options available, the top priorities for female founders today are alignment of vision, 35%, and existing relationships, 31%. Investor reputation also matters, along with industry contacts. What may surprise many is that gender composition and having women in the investor portfolio are not as important for female founders. Those landed on the bottom of the list. Also, only 15% of female founders who raised capital in the survey said that they had no other option when choosing investors as part of the round they raised in 2023. Why did you choose your latest investors? Female founders only Notes: Early-stage founders are defined as those who have raised a total of €5 million or less in funding to date. Respondents had the option to select multiple answers and the answers only include those founders that successfully raised funding in 2023. Source: LinkedIn Copy link Like Download the Report Founder, TitanML Meryem Arik $2.8m Pre-Seed round in October United Kingdom "I am a founder of an AI infrastructure company and so, the most challenging aspect of building in 2023 has been keeping up with everything that's happening with AI and ensuring that we constantly anticipate the next stage of innovation and development in the AI space. In 2024, we want to expand the range of models we support to more multimodal models, vision models, audio models, video models, etc. It has been a quite hectic year for AI development, but it has also been a great year." Almost four in five European early-stage female founders received no competing funding offers in 2023 In 2023, only 22% of female founders that fundraised, had the option to choose between competing funding offers, reflecting current challenging fundraising conditions. of early-stage female founders did not receive competing funding offers in 2023. 78% Notes: Early-stage founders are defined as those who have raised a total of €5 million or less in funding to date. Source: LinkedIn Copy link Like Download the Report Deal terms overwhelmingly the key reason behind rejected term sheets by early-stage female founders When we zoom in on the reasons behind term sheet rejections, we find that overwhelmingly, deal terms stand out in stark contrast to other options in our survey. It is by far the most cited reason behind the term sheet rejections for early-stage female founders who raised funding in 2023. Surprisingly, even though the market conditions for female founders at the growth stage were even more unfavourable, deal terms for them are not as striking. Only 35% of growth-stage founders who raised funding in 2023 pointed to deal terms as the reason behind their term sheet rejection. Why did you decline those investment offers? Female founders only Notes: Early-stage founders are defined as those who have raised a total of €5 million or less in funding to date. Only answered by founders who declined term sheets as part of their financing round in 2023. Source: LinkedIn Copy link Like Download the Report Founder, Kestrix Lucy Lyons £500k Pre-Seed round in September United Kingdom "As part of our fundraising round in 2023, we did not have the luxury to choose investors. Our cap table reflects this—currently, we have only two female investors on our cap table. The importance of investor gender representation is undeniable, but achieving a balanced investor mix can be challenging; As we approach our next fundraising round in early 2024, we are committed to be actively seeking out and encouraging the participation of female investors. Switzerland, Sweden and France see the highest percentage of Pre-Seed and Seed stage female-founded startups that never raised capital again For various reasons, even companies that secure Pre-Seed and Seed stage backing may never raise capital again. These companies might have either never sought additional funding or ceased operations altogether. We have analysed the countries within our scope to determine the proportions of early-stage female-founded companies that never received any other form of funding compared to the other female-founded startups that did raise funds. Over 60% of female-founded startups in Switzerland, Sweden and France that raised Pre-Seed or Seed funding never raised capital again. Cumulative share of companies that never raised again after Pre-Seed and Seed rounds, as of 2023 Tap on a bar to reveal the exact percentage Notes: Source: Dealroom LinkedIn Copy link Like Download the Report Founder, Xihelm Maria Ghibu Was fundraising in March United Kingdom "We have decided to take a pause in building our company this year. When we started fundraising for our Pre-Seed round in March, we were pre-product and pre-revenue, and what we did not expect was the market being so adverse. We were a great team, with strong industry experience, a PHD in robotics and a top-school MBA, at one point this year, we were even recognised as one of the most promising European startups in robotics. However, in the current market this was not enough. Every investor we spoke to, including those specialising in deeptech, expected to see a finished MVP and meaningful customer traction. Demonstrating this, particularly in our field of robotics, proved to be extremely difficult." Up next 1.4 Through Growth to Exit Get a comprehensive overview of the funding landscape, aspirations, and challenges faced by European female founders at the growth stage. Explore the chapter