Paris: In Europe, only 22% of startups created in 2022 have at least one woman among their founders. And 17% of funds raised go to founding teams that include at least one woman. The annual SISTA x BCG barometer, carried out for the first time on a European scale, observes a still very unequal parity within the creation and financing of startups, and proposes a roadmap in order to achieve better practice.
Where are the women at the head of startups in Europe? Not only are they under-represented there, but the situation deteriorates all along the way, from creation to financing.
- In France, Germany, Spain, the United Kingdom and Sweden, only 10% of tech start-ups created in 2022 were created by exclusively female teams, and 12% by mixed teams.
- In addition, there is a deterioration in the place of women throughout the life course of startups, since thereafter, exclusively female teams concentrate only 7% of fundraising, and 2% of financing.
- In France, the figures are below the European average: only 20% of startups created in 2022 in France have at least one woman among the founders. When the latter start out, only one in four dare to do it solo (20% on average). As for mixed teams of startup creators (composed of men and women), they are less numerous in France than last year (-4%).
These are the observations made by BCG and SISTA, which today published the 4th edition of their annual barometer on gender equality in the startup ecosystem. This year, Boston Consulting Group (BCG) and SISTA have extended their analyzes to four other key countries in Europe: the United Kingdom, Germany, Spain and Sweden.
A delay taken on a European scale
The analyzes show that the delay noted in France for 4 years is found on a European scale. “This barometer aims to provide quantitative analysis and serve as a catalyst to drive change in the world of tech. Achieving gender parity is indeed a condition for economic growth. explains Leila Hamidou, associate director at the Boston Consulting Group.
The other area of concern is funding. Less than a fifth of funds raised in 2022 went to a founding team that included a woman. The average amount raised by teams made up only of women remains around 4 times lower than that of teams made up only of men. Mixed teams nevertheless allow women to access more funding, which raises amounts 3 times greater than those raised by exclusively female teams.
Women excluded from big fundraisers
“Despite the differences between European countries, none of them can claim to be a champion of gender parity,” says Leila Hamidou, Associate Director at BCG. In order to foster a more inclusive and equitable investment landscape, it is imperative that we work towards greater representation of women in venture capital firms. In fact, today men are more represented, yet they tend to mainly finance start-ups founded by exclusively male teams. “.
Depending on the country, startups created by men capture 77% to 91% of the total funds raised, which leaves only 7% to 22% for mixed teams and only 1% to 5% for women’s teams. Women are excluded from major fundraising operations: 94% of their fundraising is less than 15 million euros, and only 2 operations are greater than 50 million euros (compared to 215 for men in 2022) within the scope studied. “ Inequalities get worse over time. The amounts raised by women tend to reach a glass ceiling after 6 years of existence of the startup, while the amounts raised by men explode . says Alexia Reiss, General Delegate of SISTA.
A finding that is true at the French level. Due to the contraction of the market, teams including women received lower amounts to develop their business in 2022: 1 million euros less on average than in 2021 for all-female teams, 5 million euros less for mixed teams.
Encourage the culture of equality
If in France certain government incentives have been put in place (Rixain Law, Parity Pact), France today remains largely behind the United States when it comes to talking about the issue of diversity. genres and tackle them. The issue of women’s representation is not sufficiently addressed today, and the figures prove that the actions are insufficient.
The SISTA charter offers a tangible roadmap, advocating the measurement of gender representation, inclusive recruitment and investment practices, and the promotion of female role models within the Tech ecosystem. According to Alexia Reiss, General Delegate of SISTA, ” By encouraging a culture of equality, by raising awareness and training the ecosystem on the cognitive gender biases that impact up to 35% of funding disparities and by ensuring that everyone accesses them equitably , we can chart a new path where women entrepreneurs will have every opportunity to make their mark in the world of startups”.
