IDC European Woman in Venture Capital

EUROPEAN WOMEN IN VC IDC #EUR148997722 © IDC 2022 7 PREFACE It is time for a change. We need a greater pool of investors to bring more diversity, growth, and jobs to Europe’s innovation ecosystems. Today, three- quarters of startups are founded by men, compared to the 8% founded by all-women teams. In 2021, only 1.8% of capital raised by tech companies went to all- women founding teams and 9.3% to mixed-gender founding teams. From a funding perspective, the gender gap is ubiquitous. Women make up just 15% of venture capital general partners in the EU. They are mainly present in junior investment positions and the employment pyramid is steep, with very few at Partner level. This is happening even though women investors often surpass their male counterparts in achieving returns on investment. Women have an outcome-based approach to investing and take a longer-term view. Their investments are often driven by social impact and sustainability. Such ventures and acquisitions are essential to set the EU on a swift and sustainable recovery path following the COVID-19 crisis. I am glad that rather than waiting to be recognised, women investors are taking matters into their own hands. They are increasingly seeking out other female investors and invest in women-led companies. At the same time, women experienced in the venture capital scene set up new networks to support each other and change the status quo. I am determined to act. This is why, one year ago, I brought together European women venture capitalists from 28 countries. The community is out there, and it is constantly growing. In less than a year, the European Women in VC have produced valuable recommendations to public and private investors, policymakers, and founders. They have put forward in record time one of the few reports looking at gender diversity in the whole European Union. Their report analyses the female funding gap and provides a survey and data-based overview of gender diversity across the European VC sector. Iwill continue touseall available tools topush thismuch- needed change. Gender equality is mainstreamed MARIYA GABRIEL European Commission, Commissioner for Innovation, Research, Culture, Education, and Youth in the world’s biggest research and innovation programme, Horizon Europe . For example, all public bodies, research organisations, and higher education institutions must implement a Gender Equality Plan within their organisation to receive funding from the programme. We also have a gender parity target for all advisory boards, such as the Horizon Europe Missions and the European Innovation Council (EIC). Indeed, over the last two years, the EIC has increased the number of women-led startups funded from 8% to 29%. Our new target is to reach 40% of women- led companies in 2022. WomentechEU is a recent call dedicated exclusively to women-led deep-tech startups offering grants, coaching and mentoring support. From now on, every year, we will support at least 100 European women-led startups. The European Institute for Technology (EIT) will do its part in training women interested in exceling in the venture capital world through its Women2Invest programme. Moreover, the EU’s new investment programme, InvestEU , will offer an integrated investment framework to stimulate “gender-smart” finance. We will provide incentives to female-led and diverse investment funds so they can, in turn, invest more into women-led companies. We will also attract women to become investors, provide capacity building, and raise awareness of the gender investment gap. And we will not stop there. This report is a crucial milestone in this endeavour. I am sure you will find it very useful, and it will inspire you to act on this important matter not only to women but to all of us. Yours sincerely,