2.3
Funding Overview
Female emerging fund managers prove resilient
Despite the challenging market conditions, female emerging fund managers have been showing remarkable resilience. Dive deeper to better understand the funding levels achieved by female emerging fund managers in Europe in 2023.
Key insights
European venture capital firms raised €53.2B in 2023, down over 37% from €83.7B announced in 2022.
This has been a great success despite the macro fundraising conditions.
Existing relationships, at 59%, alignment with LP portfolio strategy, at 51%, and access to unique deal flow, at 44%, top the list of cometitive strenghths for emerging fund managers.
Female general partner funds in these countries account for 75% of all capital raised.
In the below €50m bracket, Spain is at the forefront with 11 female-led or co-led funds in this size category. The United Kingdom is the leader in the €51m-100m fund size category, France in the €100m-1bn category, and Sweden dominates with the largest funds of €1bn and more in Europe.
.jpg)
General Partner, Blume Equity
Clare Murray
Closed €40 million fund in September
Netherlands
"The fundraising environment became difficult in 2023.
However, climate-tech is still an area where investors are deploying capital, and there are very few funds that focus on the growth stage of climate-tech investing, so throughout our fundraising process, we have been able to maintain a competitive edge. In 2023, we spent less time with asset managers or private banks, as they were focusing on fundraising themselves, and instead, we targeted pension funds, foundations, and family offices due to their much more readily-available capital to deploy. We have also observed that many government entities are now more interested in investing in climate-focused funds than was the case in 2022."
Female general partners weather fundraising slowdown with €4.4B of fresh capital raised in 2023
European venture capital firms raised €53.2B in 2023, down over 37% from €83.7B announced in 2022. Despite the global fundraising slowdown for venture capital, female European general partners in Europe announced €4.4B in fresh funding raised.
Size of fresh capital raised by female general partners in Europe, 2023
Size of fresh capital raised by female general partners.
€4.4 billion
Notes:
Source: Female Foundry,
Dealroom, Pitchbook
Capital raised by female general partners in 2023 is the lowest in three years
2023 was the lowest year for capital raised by female general partners in Europe in the past three years.
Size of fresh capital raised by female (co)led funds in Europe (€B), 2019 to 2023
Tap on a bar to reveal exact amount
Notes:
Source: Dealroom
European female emerging fund managers believe that fundraising has become more competitive over the past twelve months
In our survey, we asked female emerging fund managers in Europe about their perspective on the current fundraising conditions for venture capital firms.
Overwhelmingly, 71% of female fund managers believe that the market is more competitive now than it was twelve months ago.
Compared to 12 months ago, do you think it is more or less competitive to currently raise a VC fund in Europe?
of female emerging fund managers think it is currently more competitive to raise a VC fund in Europe.
71%
Notes:
.jpg)
Partner, Bethnal Green Ventures
Dama Sathianathan
First close of a £33 million fund in November
United Kingdom
"We’re lucky in a way that more and more people - whether they are high-net-worth individuals, family offices, or fund of funds - understand the urgency of allocating capital to funds that invest in technologies addressing some of the big thorny problems of our lifetime.
2023 market conditions suggest teams with brilliant tech for good products persevere, even in tough times. So just like the founders we’ve backed, in 2024, we’ll do our best to find value-aligned LPs that see the merit in bringing purpose and profit together."
Female emerging fund managers believe existing LP relationships are key in the current fundraising market
Delving deeper, we asked female emerging fund managers about what they think are the key competitive factors that can win over limited partners in today's market.
Existing relationships, at 59%, alignment with LP portfolio strategy, at 51%, and access to unique deal flow, at 44%, top the list.
Interestingly, despite the slow exit market, a strong liquidity profile was cited by just a fifth of female fund manager respondents.
What do you believe have been the key competitive factors for LPs over the past 12 months?
Female emerging fund managers only
Notes:
The United Kingdom, France, and the Netherlands top the list of countries where female general partners have raised the most capital
Funds based in eight European countries raised capital this year, with the highest cumulative amounts concentrated in the UK, France, and the Netherlands.
Female general partner funds in these countries account for 75% of all capital raised.
Size of fresh capital raised by female general partners in Europe (€M), per country in 2023
Tap on a bar to reveal the exact amount
Notes:
Source: Dealroom
.png)
General Partner, NP-Hard Ventures
Anke Huiskes
€12m fund in November
Netherlands
"Overall, 2023 has been a challenging year for us, especially because of the emergence of numerous new funds.
Investors, whether high-net-worth individuals or institutions, have had many options to choose from. Even institutional investors faced the hurdle of raising funds themselves before deploying them to emerging managers, which also extended our timeline. Despite the challenging environment, we were able to successfully close our €12m inaugural fund, surpassing our initial target of €10m. I believe that next year will bring similar challenges, not just for investors but also for startup founders"
A third of female emerging fund managers who fundraised in 2023 decreased their target fund size
Challenging fundraising conditions mean that many emerging fund managers need to rethink their strategy to improve their chances of securing a Limited Partner mandate.
In our survey, we asked female emerging fund managers whether they adjusted their fund size during the fundraising process. Just over half of the respondents said they made no changes to their target fund size, while just over a third decided to decrease their fund size.
During your fundraising process in 2023, did you adjust your target fund size?
Female emerging fund managers only
Notes:
There are twenty seven funds in Europe with female General Partners that raised funding in 2023
In 2023, 107 funds were announced in Europe, and 27 of those were raised by funds with at least one female general partner. This represents 25% of all funds raised.
Number of new funds raised by female General Partners in 2023
Number of funds (co)led by female GPs that were announced in 2023.
27
Notes:
Source: Dealroom
The number of new European female-led funds is on the rise
In the midst of challenging market conditions, 2023 has been a standout success for female general partners. 27 female (co)led funds in Europe have been raised, an 80% increase from 2022.
Number of new funds (co)led by female general partners announced, 2019 to 2023
Tap on a bar to reveal the exact number
Notes:
Source: Dealroom
.jpg)
General Partner, node.vc
Daniela Sjunnesson
SEK 533m First close in March
Sweden
"Fundraising in 2023 has been slow for most fund managers, but especially for those trying to raise their first fund. Our fundraising strategy evolved over the course of the year.
We initially expected to raise a significant portion of our fund from institutional investors, but as we started speaking with LPs, we quickly realised that as an entrepreneur-led fund, it was easier for our thesis to resonate with and for us to attract capital from family offices and entrepreneurs as their decision making processes tend to be quicker."
The majority of female General Partners who raised capital in Europe in 2023 have a venture capital investment background and are in their 40s
Venture capital investment and angel investment backgrounds top the list of experiences of female fund managers who raised funding in 2023. If combined, over a third of these female fund managers also have some sort of startup experience, either as founders (23%) or as operators (12%).
Half of the female fund managers are between 40 to 50 years old.
Female fund manager profile: background
I have been
a VC
investor
39%
26%
I have been
an angel
investor
I have been
a startup
founder
23%
12%
I have worked
in a startup
/scaleup
I have tech/ engineering
background
12%
Female fund manager profile: age
40-50 years
old
54%
23%
50-60 years
old
20-30 years
old
23%
Notes:
Source: Female Foundry,
Crunchbase
Female emerging fund managers cite slow LP feedback and a lack of LP contacts as their key fundraising challenges
In our survey, we aimed to gain deeper insight into the obstacles faced by European female emerging fund managers who have not closed their funds yet. We asked them about the challenges preventing them from closing their first or second rounds of funding.
Slow LP feedback is the most significant challenge, with 74% of female emerging fund managers reporting that LP feedback has been slow. Additionally, a lack of LP contacts, 53%, and a weak investment track record, 26%, are also key challenges.
Interestingly, those who managed a first close also identified low LP interest as a major obstacle.
Why do you think you have not achieved the first/second close of your fund yet?
Female emerging fund managers only
Notes:
.png)
General Partner, Vanagon Ventures
Susanne Fromm
€30m fund in December
Germany
"When we started fundraising in the first half of 2023, we observed a significant interest in our thesis but also some reluctance to take next steps in the due diligence process.
As the months passed and meetings recurred, the reluctance started to wane. This development is certainly partly due to a cautious recovery in investment appetite but largely due to our growing relationships sharing knowledge and dealflow, our progress as well as the results of our meanwhile 10 portfolio companies. Also increasing LP awareness of planetary boundaries and next frontier software, in particular AI, is giving us additional tailwinds."
Spain has the largest number of micro funds with female General Partners in Europe
We have analysed both the location and size of female-led or co-led funds to gain a clearer understanding of the capital under management by female General Partners across Europe.
In the below €50m bracket, Spain is at the forefront with 11 female-led or co-led funds in this size category. The United Kingdom is the leader in the €51m-100m fund size category, France in the €100m-1bn category, and Sweden dominates with the largest funds of €1bn and more in Europe.
Number of active funds (co)led by female GPs per fund size (€M), per country
Tap on a bar to reveal the exact number
Notes: "Micro fund" defined as a fund with less than $50 million in assets
Source: Dealroom
Female emerging fund managers in Europe report that it took them over a year to achieve the first close of their funds in 2023
We asked female emerging fund managers in Europe who had achieved the first or second close of their funds in 2023 about the duration it took to complete those closes, from the initial fundraising conversations with Limited Partners to their firm commitment.
On average, it currently takes just over thirteen months for European emerging female fund managers to reach the first close of their funds, and 22 months to achieve the second close.
Generally, female emerging fund managers who achieved at least the first close of their fund in 2023 found the process more time-consuming than expected.
How long did it take you to achieve the first/second close of your fund?
average time it took female emerging fund managers to achieve 1st close
13 months
average time it took female emerging fund managers to achieve 2nd close
22 months
Was the process shorter or longer than expected?
Emerging emerging fund managers only
Notes:
Out of the twenty seven funds raised by female General Partners in 2023 in Europe, almost half are first-time funds
Twelve funds that were announced in 2023, were raised by first-time female fund managers in Europe.
were announced in 2023 by first-time female fund managers in Europe
12 funds
54%
Not-first-time
First-time
46%
Notes:
Source: Female Foundry,
Crunchbase
Dealroom
.jpg)
Founding team, Black Seed
Yvonne Nagawa
£5m First close in June
United Kingdom
"In such a slow fundraising environment, remaining focused and maintaining financial stability has been important for us.
We understand that as fund managers, our income largely depends on management fees. Waiting for our fund to close to get management fees has not been an option for us. We aim to close our fund in 2024 and we are currently exploring ways to generate income through alternative sources while navigating the intricacies of attracting LPs to our fund."
First-time female fund managers focus on backing early-stage B2B SaaS and Sustainability startups in Europe
We have analysed both the investment thesis and the profiles of twenty six first-time female fund managers who successfully closed their funds in 2023.
58% of all first-time funds have a specialist focus, with a particular emphasis on Sustainability, 30% and B2B SaaS, 40%, targeting businesses at their earliest stages of formation, 92%. Additionally, first-time female fund managers are experienced angel investors and founders, both accounting for 42%.
The most frequent thesis
42%
Generalist
Specialist
58%
B2B SaaS
40%
Sustainability
30%
Growth: Series A - Series C
8%
Early: Pre-Seed - Seed
92%
Late: Series C+
0%
First-fund manager background
I have been
an angel
investor
42%
42%
I have been
a startup founder
I have been
a VC investor
25%
8%
I have been
a startup founder
I have tech / engineering
background
8%
Notes: