The state of gender diversity in European startups: Female Innovation Index 2025

Today sees the launch of the Female Innovation Index 2025 launched by Female Foundry. 

The Index is Europe's largest report on the funnel of innovation and funding driven by female entrepreneurs, in partnership with over thirty-five private equity and venture associations, and leading European venture ecosystem players across twenty European countries. 

The 2025 edition unpacks over 150 insights to reveal a granular and vivid picture of the funnel of female innovation in Europe. 

It demonstrates that  despite funding challenges against male entrepreneurs, female founders across Europe are embracing AI-driven opportunities and doubling down on tackling the toughest challenges

1,196 European female-founded startups raised €5.76 billion through 1,305 deals in 2024.

 While this marks a 12 per cent drop from the €6.56bn raised in 2023, the decline is in line with the broader 11 per cent decrease in venture capital funding deployed across European companies of all genders. 

Female-led innovation in deeptech

The deep tech sector stands out as a major opportunity for further investment in female-led innovation, with 33 per cent of all venture capital raised by female entrepreneurs in Europe going to deeptech startups—  this is 2 per cent more than gender-agnostic startups. 

Key areas of innovation include synthetic biology, generative AI, and drug development. 

Agata Nowicka, Founder of Female Foundry and the author of the report:

“We are living in unprecedented times, with the pace of innovation accelerating and AI transforming the way we live, work, interact and think about the future.

Female founders across Europe are clearly seizing new opportunities created by AI to tackle the world’s toughest challenges with deep-tech emerging as a powerful arena for female-driven innovation in Europe”. 

Women raise just 12 per cent of the total VC capital raised by startups in 2024

The €5.76bn raised by female founders represents 12 per cent of the total VC capital raised by startups of all genders in 2024.

Health, fintech, and food continue to attract the biggest amount of venture capital investment going to female-founded companies. 

Female founders are the most successful at the Seed stage. The funding rounds for female founders are also getting bigger. 

Growth in funding and scaling 

Funding rounds for female founders are also getting bigger. On average, there has been a 7 per cent increase in round size across the stages compared to last year. 

More Seed-stage female-founded companies reach Series A (20 per cent) than the broader European startup population (18.9 per cent). 

Further, the number of $0 to $1 million and $1 million to $4 million funding rounds has decreased by 29 per cent, while $40 million to $100 million rounds remain stable (-1.51 per cent) and $100 million to $250 million rounds rose by 41.72 per cent. 

The deep tech sector presents a significant opportunity for more investment in female-led innovation

33 per cent of all venture capital raised in 2024 by female entrepreneurs in Europe went to deeptech startups, which is 2 per cent more than gender-agnostic startups. 

81 per cent of the 50 largest financing rounds of 2024 raised by female founders went to those with scientific backgrounds. 

• Synthetic biology (€282.4 million), 

• Generative AI (€221.8 million), and 

• Drug development (€169.9 million) were the top-funded areas of deep tech by female-founded companies in 2024. 

Female AI innovation is picking up the pace

25 per cent of the 50 largest financing rounds of 2024 raised by female founders went to AI-driven startups. 

The biggest rounds: Swiss Cradle - €66m round in November, UK-based Dexory - €50m round in October, and Swedish Sana Labs - €50m round in October. 

Female-founded M&A, unicorns, and IPOs gain momentum. 

M&A activity by female-founded companies grew by 15 per cent, with 111 deals recorded in 2024 (vs. 100 in 2023).

Three European female-founded companies — France’s Newcleo and Pigment, and Germany’s Cardior Pharmaceuticals—achieved unicorn status in 2024, joining 22 other female-founded companies in surpassing the €1bn valuation mark. 

2024 was also a landmark year for female-founded company exits. 

UK-based Raspberry Pi, Bulgaria’s Boleron, and Sweden’s Big Akwa successfully went public through IPOs, marking an increase from just one IPO last year. 

The UK, France, and Germany lead in funding for female-founded companies, while Finland and Denmark have the highest proportion of venture capital allocated to them.