In 2021, European venture capital was on the rise. Continental startups Raising 100 billion euroswhile the investors themselves raised nearly 20 billion euros for new funds.
But amid all the excitement, not one thing has changed: the proportion of funding geared toward institutions. Last year, women established startups that collected only 1.1% of the investment in Europe, while 8.8% of the investment Went to mixed-gender foundation teamsAccording to the report of the Atomico State of European Tech.
today, new report Released by European Women in VC explores why this is happening, by sharing new data on gender balance in venture capital firms in Europe.
The picture is not pretty. Only 15% of general partners in European venture capital – those who usually run companies – are women. They also enjoy fewer roles than their male counterparts and fewer seats on investment committees.
The findings are based on a desk research of 303 European venture capital funds and a survey of 122 venture capital funds with more than €25 million in assets under management.
The gender balance in venture capital firms is poor
Across Europe, 85% of GP Ventures are men.
Its worse than average in the UK, where 87% of GPs are men. The worst of it is Central and Eastern Europe: 90% of GPs are men.
Women have access to fewer assets under management
The amount of capital that women have access to is also less than their male counterparts. Women GPs have access to only 9% of total assets under management (AUM) in Europe, even though they represent 15% of GPs.
In the Nordic countries, the GP has access to only 6% of the assets under management (AUM). In the UK, female GPs have access to only 5% of the firepower.
Women are changed to pregnancy
GPs also get a smaller share of the investment spoils.
A survey of 122 venture capital firms reveals that 91% of male GPs across Europe have access to interest-bearing – the percentage of venture capital fund profits that go to fund managers – compared to 70% of general women.
Zooming in closely across the continent, the picture changes. In the Baltic states and the United Kingdom, GPs had the same amount of interest as male GPs. However, in southern Europe, only 44% of GPs had access to chargeable interest, compared to 79% of male GPs.
Progress to partner is slow
While many venture capital firms have been on a recruitment drive to find more female investors, these efforts have not had a significant impact on the partner level.
The VC team is split evenly between men and women in entry-level roles, with women occupying 46% of junior positions. However, only 32% of the top positions are held by women.
Investment committee members are mostly men
Ventures investors generally decide which startups to invest in at the weekly investment committee meeting.
Those meetings were mostly attended by men: four out of five members of the corporate investment committee surveyed are male.
LPs are worse
Moving on to the level of Limited Partners (LPs) – people and companies who invest in venture capital funds – the gender divide is even worse. According to the survey, only 10% of women in LPs have influence and ability to make investment decisions.
Women-led companies are on the rise
The majority of Europe’s largest venture capital funds are managed by primarily male partners.
However, in Europe there are some huge money run by women. Last year, based in Paris Revaia has collected the largest fund on the continent Led by female general practitioners, at a price of 250 million euros.
Crobery also grew up, led by three partners and based in Iceland $90 million The biggest Iceland ever.
Some, but not all, of these funds focus solely on supporting the founding women. In the UK, there are Pink Salt Ventures, which was launched in December and invests in women-led companies in the pre-stage and start-up phase. In Germany there Auxxo, a $15 million fund Dedicated to institutions.
Moreover, Auxxo has more women than men investors that it finance. “It was important for us to attract many women as investors. Once there are more female investors in the venture capital business, the female founders will also have enough capital,” co-founder Giza Mikzaica told Sifted at the time.