Startup Funding Trends: Deeptech and Gender

Venture Capital Trends for Women-Led Startups in Europe

Historically, investment in startups with female leadership has consistently trailed behind the broader market. However, recent data for 2024 presents a nuanced picture. A new report released this week in London by Female Foundry, a European venture platform, indicates a shift in this dynamic.

Investment Decline Aligns with Overall Market Trends

Venture investment in European startups founded by women experienced a 12% decrease in 2024 compared to the previous year. Importantly, this decline mirrors the 11% reduction observed in overall venture investment, suggesting a broader market correction rather than a gender-specific issue.

Deep Tech Emerges as a Strong Area for Female Founders

A particularly noteworthy finding is that women founding deep tech startups are currently attracting more funding than their male counterparts in this sector. The report, titled Female Innovation Index 2025, attributes this trend to the strong ties between deep tech and academia.

Women are generally more proportionally represented within academic institutions, fostering an environment conducive to female entrepreneurship in deep tech. Approximately 33% of all venture capital secured by female entrepreneurs in Europe is now directed towards deep tech ventures – a 2% increase compared to gender-agnostic startups.

Key Innovation Areas

Significant innovation is occurring within areas like synthetic biology, generative AI, and drug development, attracting substantial investment.

Report Methodology and Scope

The Female Innovation Index 2025 is based on a comprehensive survey of over 1,200 individuals. This includes female founders, investors, and executives, as well as representatives from more than 35 private equity firms, venture associations, and ecosystem stakeholders across 20 European countries.

The report’s methodology differs from some others by including startups with at least one female co-founder. This broader definition significantly expands the sample size compared to reports that focus solely on all-women founding teams.

Persistent Underrepresentation in Venture Funding

Despite these positive developments, several surveys conducted last year confirmed that women founders continue to be significantly underrepresented. All-women founding teams secured only 2.2% of the total venture capital allocated in 2024.

The Importance of Inclusive Metrics

“I initiated this index because I recognized that the frequently cited 2% statistic regarding female-founded startups lacks sufficient detail,” explained Agata Nowicka, founder of Female Foundry and the report’s author. “My own experience as an entrepreneur with a male co-founder would have excluded me from that figure. A more diverse range of metrics is essential.”

Encouraging Academic Entrepreneurship

While the progress in deep tech is encouraging, Nowicka emphasizes the need to further incentivize women in academic settings to pursue entrepreneurial ventures. She acknowledges that a certain stigma still exists surrounding the transition from academia to startup creation.

COVID-19's Impact on Accessibility

Nowicka also observed that the COVID-19 pandemic contributed to a more equitable landscape for women in tech. The industry was compelled to become more open and accessible due to widespread disruptions.

“In 2016, many VCs lacked even a basic online presence. Numerous events were held privately,” she stated. “The surge in investment during 2021-2022 fundamentally transformed the venture capital industry, increasing accessibility for women as VCs sought deal flow in a more competitive environment.”

Key Findings from the Report

• Female-founded businesses across Europe raised €5.76 billion in 2024, a 12% decrease from the €6.56 billion raised in 2023.
• The health, fintech, and food sectors are receiving the largest share of venture investment directed towards startups with female founders.
• The seed stage remains the most successful funding stage for female founders. Average round sizes raised by women-founded startups increased by 7% across all stages compared to 2023.
• Over 80% of the 50 largest funding rounds secured by female-founded startups in 2024 were allocated to ventures with scientific expertise in areas such as synthetic biology (€282.4 million), generative AI (€221.8 million), and drug development (€169.9 million).
• The U.K., France, and Germany lead in overall investment in female-founded companies. Finland and Denmark demonstrate the highest proportion of venture capital allocated to these startups.