Introduction to Women-Founded Startups

Venture investment in startups run by women has always lagged behind the overall market. However, a report by European venture platform Female Foundry reveals that the decline in funding for women-founded startups in 2024 was not as severe as expected. The report found that venture investment to startups founded by women in Europe declined 12% in 2024 from a year earlier, but it was nearly in line with the 11% decrease in overall venture investment.

Notably, women who founded deep tech startups are raising more than men are in that area. The report, dubbed Female Innovation Index 2025, found that the number of female founders in deep tech is increasing thanks to that sector's links to academia, where women tend to be more equally represented.

Key Findings

About 33% of all venture capital raised by female entrepreneurs in Europe is going into deep tech startups — 2% more than gender-agnostic startups. Key areas of innovation include synthetic biology, generative AI, and drug development.

The report surveyed more than 1,200 female founders, female investors, and executives, and over 35 private equity firms, venture associations, and ecosystem players across 20 European countries.

Challenges and Opportunities

Despite the positive trends, there is still a stigma attached to entering a startup from academia, according to Agata Nowicka, founder of Female Foundry and author of the report. Nowicka thinks women in academic environments need to be encouraged more to take up entrepreneurship.

The COVID-19 pandemic had helped create a more level playing field for women in tech because the wider industry had been forced to open up. As a founder in 2016, most VCs didn't even have a website or had just a landing page. Many events were held privately.

The venture capital industry transformed during COVID because of the boom in investment during 2021-2022. VC became overall more accessible to women because they needed deal-flow, and it became more competitive.

Conclusion

In conclusion, while funding to women-founded startups declined in 2024, the decline was not as severe as expected, and women-founded deep tech startups are raising more funds than their male counterparts. This trend is expected to continue as more women enter the startup ecosystem and take advantage of the opportunities available to them.