Introduction to the Problem

European tech has a notable gender equity problem, with men dominating the leadership of most companies in the sector. Women founders struggle to raise VC money, and there's a stark pay gap between male and female workers. This gender imbalance is especially glaring in the STEM-dominated world of deep tech.

According to a new report from the EU-funded GENDEX project, women lead just 22% of European deep tech companies. Securing funding remains a challenge, with women-led firms taking six months longer to sign their first term sheet. Over the past decade, women-led companies raised 1.8 times less capital than those led by men.

Consequences of the Gender Imbalance

European deep tech gender inequity limits diversity of thought and stifles innovation. It's also pouring hundreds of billions of euros in potential revenue down the drain. Data from the GENDEX report shows that women-led deep tech companies have generated over 11% of the total value raised at non-IPO exits in the past decade — a disproportionately low figure.

However, these firms account for just 0.6% of such deals, highlighting the outsized value created when women take the lead. Achieving greater representation of women-led companies at the exit stage — both IPO and non-IPO — over the past decade would have unlocked an estimated €198.8bn in additional value, GENDEX found.

Recommendations for Change

GENDEX makes four key recommendations to remedy the problem. First, investors should demand that companies report on gender diversity before deploying capital. Second, more funding should be allocated to women-led teams, which have been shown to deliver better outcomes. Third, better legal and funding support is needed for women to secure IP rights. Finally, government co-investment should require gender-balanced portfolios to ensure accountability in public funding.