Contrary to expectations, venture investment in startups founded by women in Europe has shown resilience in 2024, with a 12% decline in funding compared to an 11% decrease in overall venture investment, according to a report by European venture platform Female Foundry.

The report, dubbed the Female Innovation Index 2025, surveyed over 1,200 female founders, investors, and executives, as well as 35 private equity firms and ecosystem players across 20 European countries. Notably, the report counted startups with at least one female co-founder, which greatly increases the sample size of startups considered.

One of the most promising findings is that women who founded deep tech startups are raising more than men in that area. The report found that 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.

Agata Nowicka, founder of Female Foundry and author of the report, attributes the growth in deep tech to the sector's links to academia, where women tend to be more equally represented. However, she notes that women in academic environments need to be encouraged more to take up entrepreneurship, citing a lingering stigma attached to entering a startup from academia.

The report also highlights the importance of considering diverse metrics when evaluating female-founded startups. Nowicka points out that the oft-quoted 2% figure about the number of female-founded startups is not detailed enough, as it only accounts for all-women founding teams. By including startups with at least one female co-founder, the report provides a more comprehensive picture of the landscape.

Other key findings from the report include the fact that female-founded businesses in Europe raised €5.76 billion in 2024, with the health, fintech, and food sectors seeing the most venture investment. The seed stage is where female founders see the most success, and round sizes raised by women-founded startups increased 7% across stages compared to 2023.

More than 80% of the 50 largest funding rounds raised by female-founded startups in 2024 went to those with scientific backgrounds in areas such as synthetic biology, generative AI, and drug development. The U.K., France, and Germany top the charts for investment in female-founded companies, while Finland and Denmark have the highest proportion of venture capital allocated to such startups.

The COVID-19 pandemic has played a significant role in creating a more level playing field for women in tech, according to Nowicka. The industry's transformation during the pandemic has made venture capital more accessible to women, as firms needed deal-flow and became more competitive.

Overall, the report provides a nuanced and encouraging view of the state of female-founded startups in Europe, highlighting areas of growth and opportunity. As the industry continues to evolve, it will be important to monitor these trends and support women entrepreneurs in their endeavors.