Women in European Deep Tech startups are still underrepresented

Despite Europe’s status as a global innovation hub, a new report highlights the persistent gender gap in the deep-tech startup ecosystem. The study, Women Founders in European Deep Tech Startups, reveals that while progress has been made, women remain vastly underrepresented as founders and underfunded compared to their male counterparts. 

Only 14% of deep-tech startup founders in Europe are women, and these ventures receive just 11.4% of the sector’s total funding. Public grants account for almost a third of this support, while private investors, including venture capital firms, show a marked reluctance to back women-led startups. 

The report, commissioned by the European Institute of Innovation and Technology (EIT) and the European Investment Bank (EIB), stresses the importance of fostering gender diversity in a sector critical to Europe’s competitiveness. 

Funding Gaps and Regional Disparities 

Deep Tech startups with at least one woman in the founding team remains below 25%, yet this percentage has been increasing from 11.3% in 2011 to 24% in 2022. Although funding for women-led startups is growing, disparities remain. Startups with female founders in Central Europe and Anglo-Saxon regions perform relatively better, securing up to 30% of funding in those areas. However, women-led ventures in Eastern Europe capture only 3.6%. 

Women entrepreneurs also face challenges in accessing private funding sources. Women Deep Tech startups are more likely to receive grants, but less likely to receive early and late VC. In general, Women Deep Tech startups receive less total funding and less funding per round. 

Programs for Change 

With the global deep-tech market booming, Europe’s ability to compete hinges on harnessing the full potential of its talent pool. Closing the gender gap is not just a moral imperative, but a strategic necessity for economic growth and innovation. 

In the report, EIT Director Martin Kern underscores the importance of inclusion: “Europe can not afford to miss out on the potential of half its population. Women in leadership roles are essential for driving innovation and solving global challenges.” 

The WomenINvestEU Network will establish an open and inclusive group of key players, building on existing networks and promoting connections for mutual support and direct investment and co-investment opportunities, thus significantly increasing the level of investment into female founders and co-founders in Europe. 

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