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Funding to women-founded startups declined 12% in 2024, but that wasn’t farbehind the broader market
In 2024, venture investment in women-founded startups in Europe declined by 12%, paralleling an 11% drop in overall investment. The Female Innovation Index 2025 report reveals an increase in female founders in deep tech, with 33% of capital going to this sector. Despite challenges, female entrepreneurs see growth in funding and participation, particularly in health and fintech sectors, indicating progress amidst a historically male-dominated landscape.
Key points
- Venture capital funding for women-founded startups dropped by 12% in 2024.
- Overall venture investment also decreased by 11%, showing women founders are not far behind market trends.
- Deep tech startups led by women are raising more capital than their male counterparts.
- 33% of venture capital for female entrepreneurs in Europe is directed toward deep tech, a sector linked to academic representation of women.
- Female-founded businesses in Europe raised €5.76 billion in 2024, a 12% decrease from €6.56 billion in 2023.
- Health, fintech, and food sectors attracted the most investment in female-founded startups.
- Seed stage funding is particularly successful for women founders, with increased round sizes by 7% compared to 2023.
- Over 80% of the largest funding rounds for female-founded startups involved scientific backgrounds in fields like synthetic biology, generative AI, and drug development.
- U.K., France, and Germany lead in investments for female-founded companies, while Finland and Denmark have the highest proportion of venture capital going to these startups.
Why it matters
- The decline in funding correlates with broader market cuts in diversity and inclusion efforts.
- Historical trends show women founders have been vastly outnumbered by male counterparts in venture funding.
- The COVID-19 pandemic forced a transformation in the venture capital industry, making it more accessible to women entrepreneurs.
- Emerging technologies like synthetic biology and AI are areas where women are making significant contributions, indicative of shifts in the tech landscape.
Despite a decline in venture funding, the growth in female representation in deep tech and other sectors indicates a positive trend in female entrepreneurship, especially as the investment landscape becomes increasingly competitive and diverse.