1.6
Location in focus
Funding levels for female entrepreneurs across Europe's multifaceted investment landscape vary
Europe is a unique ecosystem, characterised by its diverse range of countries, each with its own distinct history, culture, and economic background.
This cultural richness translates into different levels of venture capital activity across the continent. While some European countries boast well-established venture capital markets with high levels of investments, others are still growing their ecosystems and attracting more investors.
Factors such as government policies, the presence of innovation hubs, and culture within each country play a crucial role in shaping the venture capital environment.
This chapter is meant to capture a glimpse of the unique differences across the European countries when it comes to providing grounds for innovation for both female entrepreneurs and investors.
Key insights
In our survey, we also aimed to gain a clearer understanding of the percentage of respondents who applied for government funding in the focus countries.
Based on the analysis, Luxembourg, Finland, and Norway are the locations where the most female founders applied for government funding, while Switzerland, Poland, and Sweden have the lowest proportion of female founders who sought government funding in the past 12 months.
According to the results of our survey, both the complexity and length of the application process are key aspects that inhibit female founders from seeking government funding.
Interestingly, the challenges faced by female founders who did apply for government funding reflect the same reasons as those who did not.
Founder, Twinco Capital
Sandra Nolasco
€50m debt facility
€11m Series A round in January
Spain
"I believe our impact on the European market is two-fold. On one hand, we provide affordable funding solutions for supply chain management.
On the other hand, we enhance the quality and competitiveness of supply chains. This allows more companies to access supply chain funding, helping them become drivers of inclusive growth, unlocking new job creation opportunities, innovation, competitiveness etc."
Geographical distribution of venture capital investment across Europe
Gain a clearer picture of how venture capital funding has changed across European countries and evolved over the years. Let's take a closer look at the funding levels for female founders, taking into account their geographical presence.
Total capital (€B) invested by VC firms per country, 2019 to 2023
Tap on a country to reveal the exact amount
Notes:
Source: Dealroom
Total capital invested into female-founded companies per country, 2019 to 2023
Levels of funding for female founded companies change depending on the European country
Get a better understanding of the levels of investment going into female-founded companies in specific European countries.
Tap on a country to reveal the exact amount
Notes:
Source: Dealroom
Country-by-county Investment profiles
Gain a more comprehensive picture of the levels of funding for female entrepreneurs combined with the key country characteristics.
Founder, Femble
Lina Graf
Fundraising
Austria
"2023 marks the year when we first have been seeking external funding. Our company is based in Innsbruck, a beautiful small town in Austria with many talents yet very few VCs.
Thus, establishing our network from this small town, far from major cities, has been challenging. It's not easy to have casual coffees with VCs when you're in Innsbruck and they're in Berlin, London, or elsewhere. This geographical distance posed a significant challenge for us. However, relocating at this stage does not seem practical due to the associated costs either."
Population
9M
Venture capital
invested in 2023 (€B)
€0.5B
€27
Venture capital invested
into female-founded
companies (€M) 2023
#companies funded in 2023
14
Sectors with most capital invested into female founded companies (€M)
0
companies
Transport
Marketing
76
39
Health
104
Number of companies in the 50 Top Rounds List
GDP per capita
$58K
Country-by-country analysis of the funding environment for female enterpreneurs in Europe
Tap on a country to learn more
Notes: Equity rounds only. Top 50 Rounds List includes 50 biggest fundraising rounds of female-founded companies in Euope in 2023. Sectors data includes total amount across all rounds from 2019-2023.
Source: World Bank Open Data,
Dealroom, Female Foundry
Female founders operating in Luxembourg, Finland and Norway are the most willing to apply for government funding
In our survey, we also aimed to gain a clearer understanding of the percentage of respondents who applied for government funding in the focus countries.
Based on the analysis, Luxembourg, Finland, and Norway are the locations where the most female founders applied for government funding, while Switzerland, Poland, and Sweden have the lowest proportion of female founders who sought government funding in the past 12 months.
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Founder, Settly
Marieke van Iperen
€6m Seed round in June
Netherlands
"We are already present in a majority of European countries.
When strategising our international expansion, we analyse migration patterns and the presence of significant tech companies, as they often require relocating most of their talent, along with larger corporates. The ease of migration policies in a country also plays a role. Some countries have policies that are less welcoming to migration, which is an important factor for our expansion."
In the past 12 months, did you apply for any government funding available for your company in your country?
Female founders only
Note:
The complexity and length of the application process are key aspects that inhibit female founders from seeking government funding
In our survey, we sought to further explore the motivations behind female founders' decisions not to apply for government funding, focusing on their specific reasons.
The complexity of the application process is the key reason for 41%, while the length of the application process poses a challenge for 37% of European female founders. Also, interestingly, almost a third of respondents said they were not aware of the government funding available to them in their respective countries.
Why didn’t you apply for any government funding for your company?
Female founders only
Note:
The length and complexity of the application process are also top reasons for those founders who did apply for government funding
Interestingly, the challenges faced by female founders who did apply for government funding reflect the same reasons as those who did not.
Almost two-thirds of all female founders who did apply, found the process challenging due to its length. Managing workload has also been a challenge for 38% of respondents.
Also, for those founders who applied, understanding options and terms did not pose much of a problem, with only 11% indicating it as a concern.
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Founder, Fides
Lisa Gradow
Fundraising
Seed round, October 2022
Germany
"We are actively looking into the UK market, as we believe that legal departments there are already more advanced in recognising the need to implement AI-powered digital tools as soon as possible.
We’re lacking that mindset in Germany on a broader scale. Other than that, we get more and more inbound from the US and will explore that market as well next year."
What were the top challenges as part of the government funding application process?
Female founders only
Notes:
Source: Dealroom
Founder, Dexory
Oana Jinga
$19m Series A round in July
United Kingdom
"We are currently actively expanding into Europe, the United States and beyond into the Middle East.
We already operate in France and Romania, are about to launch in the Netherlands, and are also looking to enter the German market. We've also recently launched our first operations in the U.S. Both markets are equally attractive for us. People often suggest that entering European markets is challenging, but the U.S. market has its own set of nuances. Each state or region has its distinct characteristics, making the market as varied and complex as Europe, each in its own way."