Breaking Barriers for Women and Minority Founders in Europe’s Startup Ecosystem

The European startup ecosystem has matured dramatically over the past decade. With billions in venture capital deployed and thousands of startups emerging across sectors like AI, climate tech, and health innovation, Europe has firmly positioned itself as a global hub of innovation.

But beneath this rapid growth lies a troubling truth: venture capital is far from inclusive. Despite progress on many fronts, women and ethnic minority founders remain vastly underrepresented in both deal count and total capital raised. This imbalance is not only a moral issue—it’s a missed economic opportunity.

At Vivinnov, we believe that diversity fuels innovation. That’s why we’ve taken a deep dive into the most recent data on gender and minority representation in VC funding, while exploring how policy and entrepreneurship support programs can close these gaps.

The Gender Gap in European VC Funding—A Widening Divide

Over the past five years, women-led companies in Europe have seen slight gains in the number of deals closed, yet the total capital raised continues to lag behind. While female-founded or co-founded startups reached a peak share of 21% of total VC capital in 2023, that momentum slowed in 2024.

This chart shows the drop in capital invested into female-founded companies from €9.5B in 2021 to €5.8B in 2024, marking a 12% year-over-year decrease. Despite an increase in awareness and initiatives, 2024 was the third consecutive year of decline for women-led venture-backed businesses in Europe.

This points to a systemic issue: women are raising fewer and smaller rounds, even when they manage to break into the venture space. Mixed-gender teams fare slightly better, but all-female teams receive less than 2% of total European VC capital, a number that hasn’t budged in years.

Finland Leads the Way—What Other Countries Can Learn

While most of Europe still struggles with gender parity in startup funding, a few nations are standing out by proactively supporting women founders. 

This data reveals that Finland led the continent in 2024, with 30% of VC funding going to women-led businesses. In contrast, Denmark reached 20%, while Norway and Austria tied at 17%.

These numbers reflect the success of national-level policies and inclusive funding structures that enable women entrepreneurs to scale. They also show what’s possible: gender equity in funding is not a dream—it’s already a reality in some markets.

Ethnic Minority Founders—A Deeper Layer of Exclusion

Gender bias is just one part of the problem. Ethnic minority founders face even steeper barriers. In 2024, startups led by white founders raised a staggering €103.9 billion, while their ethnic minority counterparts raised only €1.8 billion.

That’s less than 2% of total VC funding—a pesimistic figure that underscores the urgent need to adopt an intersectional lens when designing support mechanisms.

These statistics tell us that while conversations about inclusion are increasing, actual representation is not. For innovation to thrive, funding needs to move beyond traditional networks and reach those historically excluded.

How Europe Is Responding—Policies for an Inclusive Ecosystem

The European Union has made inclusion a central pillar of its social and economic strategy. Several initiatives have emerged to correct long-standing imbalances:

– European Diversity Charters

With over 17,000 signatories, these charters support organizations in implementing effective diversity and inclusion policies.

– European Capital of Inclusion and Diversity Award

Launched in 2021, this award celebrates towns, cities, and regions that excel in inclusive practices.

– European Diversity Month

Held every May, this campaign promotes dialogue and awareness about inclusivity in the workplace and beyond.

– Inclusive Funding Programs

Several EU-level funding mechanisms now explicitly prioritize underrepresented groups:

– Horizon Europe: Focuses on research that addresses societal challenges.

– EU4Health: Tackles healthcare disparities.

– Erasmus+: Expands educational and entrepreneurial opportunities.

In all these programs, non-discrimination is a legal requirement in funding selection, a move that sets a precedent for institutional fairness.

National and Private Programs Making a Difference

While EU-wide initiatives are important, real impact often happens at the national and grassroots level. Here are three standout examples:

– French Tech Tremplin

Launched in 2019, this incubator supports entrepreneurs from disadvantaged backgrounds, including refugees and low-income individuals. The results are impressive: 90% of startups remain active after one year, and more than 2,000 entrepreneurs have benefited.

– Diversidays

This private initiative empowers diverse digital professionals and founders through programs like the Leadership Program for entrepreneurs and DéClics Numériques, a digital career transition accelerator.

– Vivinnov

As a startup studio, Vivinnov directly invests in diverse, impact-driven startups. Two out of five of our recent investments are led by women, and a person with a disability founds one. We provide not just funding, but also expert guidance and strategic support.

To build a fairer and more innovative startup ecosystem, stakeholders must move beyond symbolic gestures and commit to actionable, structural change. First, harmonizing regulations across Europe is essential. Diversity and inclusion policies must not remain aspirational; they need to be standardized, enforced, and integrated into the legal frameworks of all EU nations to ensure consistent progress across the continent.

Second, there must be a deliberate effort to expand support for underrepresented entrepreneurs. This includes scaling up mentorship opportunities, launching more early-stage funding programs, and developing inclusive investment vehicles that give diverse founders a genuine chance to succeed.

Finally, it’s critical to foster diversity within the tech workforce itself. Organizations should move beyond merely fulfilling quotas and instead focus on cultivating inclusive cultures where talent from all backgrounds can grow, lead, and thrive.

A Call to Investors, Policymakers, and Innovators

The future of innovation lies in the hands of those we choose to fund. If we continue to channel capital into the same circles, we will continue to get the same results. But if we broaden our perspective, recognize untapped potential, and intentionally build systems that support inclusion, we open the door to solutions the world has yet to imagine.

At Vivinnov, we’re committed to doing our part. We believe that when you back diverse founders, you don’t just invest in equity—you invest in better ideas, stronger teams, and a more resilient economy.

About the Author

hÉLÈNE mariette

With over 20 years of experience in business development, Hélène, now the founder of Vivinnov, a company that supports the growth of innovative startups and SMEs by helping them secure funding and expand their commercial presence in France and internationally.

Despite the COVID crisis, over the past two years, we have contributed to the success and growth of more than a dozen startups.