Unlocking €199 Billion: Why Europe Must Support Women-Led Deep Tech

Unpacking the €199 Billion Loss: A Call for Gender Equity in Tech

The European tech landscape is at a crossroads, grappling with a stark gender equity problem that is stifling innovation and potential revenues. Recent findings from the EU-funded GENDEX project reveal that only 22% of deep tech companies are led by women, revealing a significant underrepresentation. This inequity not only limits diversity of thought but has also cost the European economy an astonishing estimated €198.8 billion in missed potential value over the past decade.

A Closer Look at Funding Disparities

The challenges women founders face in securing funding are pronounced. Women-led firms take, on average, six months longer than their male counterparts to finalize their first term sheet. Moreover, data shows women-led companies raised 1.8 times less capital than male-led ones from 2014 to 2024. Even when funding is achieved, women are often offered less favorable terms. This systemic issue raises questions about biases in funding practices and how they might contribute to a narrowing funnel of emerging talent in deep tech.

Innovation at Risk: The Need for Structural Change

The GENDEX report underscores the critical need for structural change to foster a more gender-balanced ecosystem. Tanya Suarez, chair at GENDEX, stating that better representation not only equals fairness but also leads to superior outcomes. As it stands, women account for 42% of STEM graduates in Europe, but their presence diminishes in the workforce and in leadership roles, with only 24% of patent applications including women as inventors. This disparity highlights the importance of tapping into diverse talent pools to ensure comprehensive innovation in the tech sector.

Moving Forward: Recommendations to Close the Gender Gap

To address these glaring disparities, GENDEX has outlined four vital recommendations: First, investors should require companies to report on gender diversity before deploying capital, thereby creating a culture of accountability. Second, more funding must be allocated to women-led teams, given their potential for delivering better outcomes. Third, legal support for women to secure intellectual property rights must improve. Finally, public funding should mandate gender-balanced portfolios, promoting accountability within government investments.

Closing the gender gap in deep tech is not merely a moral imperative; it is a significant economic opportunity that must be pursued for the benefit of all. By acknowledging and addressing these issues, we can unlock the full potential of Europe’s innovation economy and pave the way for a more inclusive future.