Study: Women are less likely to be investors and receive less money as founders

A new study shows the glaring inequality in the scene. But: Women are more likely to invest in women. According to the study, in order to close the large funding gap, it could help to provide more capital for funds run by women.

Startups founded by women receive less venture capital than all-male or mixed teams of founders. That's the finding of an analysis by European Women in VC, an alliance of women and men for more gender diversity in the European startup scene. According to the study, only 1.8 percent of all investments in Europe went to female founders last year. Compared to previous years, the proportion has barely changed.

There is also a funding gap between the sexes on the investor side: a survey of more than 400 venture capital companies revealed that only 15 percent of women participate in funds. 85 percent of shareholders are male. Moreover, female investors tend to participate in small funds. Thus, 91 percent of the actual investment power lies with male investors. Women also occupy primarily junior investment positions and are less likely to reach partner status.

"The problem is systemic, so we need to look for holistic solutions," explains Anna Wnuk, Head of Community at European Women in VC. "The capital imbalance is not only visible at the startup level, but runs through the entire value chain and needs to be addressed from the top of the capital flows. We need more capital for women-led funds and women investors at the fund management level."

However, the European Women in VC report also showed record growth across the investor scene. Last year, a total of more than €100 billion flowed into European startups. The investments helped 100 more startups achieve unicorn status.