New report on funding landscape for women-driven businesses published
On 29 June 2020, a new report on “Funding women entrepreneurs: How to empower growth” was published. The report was prepared jointly by the EIB and European Commission and provides a market overview of the funding landscape for women-driven businesses. It assesses the access-to-risk-capital conditions for these firms and analyses trends in venture capital funding for women-led and women-founded companies in the EU, the United States and Israel. The report is based on data from PitchBook and interviews with market practitioners from the European venture community and other stakeholders.
The report finds that women-led start-ups are not funded on an equivalent basis to men-led start-ups. They only account for a small portion of the deal flow and overall volume invested. This is due to the combination of a lack of female representation among founders and investors, gender investment bias and risk aversion. Despite the significant structural disparities, the report finds substantial evidence in support of an optimistic outlook for women entrepreneurs. Overall, the data suggest that the investment climate for women entrepreneurs in the EU is slowly improving, although differences in the overall proportions still exist.