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Percentage of women founders in deep tech has doubled since 2010, but still falls short

Startup technology companies that have a woman among their founders are receiving less total funding than those without female founders, a study has found.

Deep-tech startups with women founders received only 11.4 per cent of the total funding going to such companies between 2010 and 2022, the study found, despite these companies making up 17.4 per cent of the total number.

The percentage of startups with at least one woman in the founding team went up from 12.3 per cent in 2010 to 24 per cent in 2022, found the study, carried out for EU bodies including the European Institute of Innovation and Technology (EIT).

‘Much more to do’

Marjut Falkstedt, chief executive at the European Investment Fund, said: “The findings of the study are yet another reminder that we still have a great deal more to do.

“A gender-positive approach to the deep-tech industry in Europe will, in and of itself, be a marker of innovation.

“A more gender-diverse approach to the venture capital industry can help set Europe apart and put it on a path to become a leader in this field.”

The EIT said that “the only positive trend in funding” identified was that deep-tech startups with women among their founders receive their first funding faster than startups with all-male founders.

‘Talent being wasted’

Europe is “dramatically underusing half of the talent in its population”, the study concluded. It recommended further research into why this is the case, and into whether the presence of women among venture capitalists eliminates funding biases.

Public funding could be allocated specifically to supporting startups with female founders, it also suggested. 

EIT director Martin Kern said the study supports “a call to overcome the gender gap for investment in deep tech”, adding: “This is a missed innovation opportunity that Europe simply cannot afford.”