Women are underrepresented in EU private equity, venture capital and private debt markets. “Underrepresented” is putting it mildly – the figures are shocking. According to research by the European Investment Fund and Invest Europe “only one in ten founders and CEOs receiving Venture Capital(VC) in Europe are women. On the investor side, the situation is only marginally better: one in seven top-level VC investors in Europe are women. Perhaps even more strikingly, nine in ten top-level female investors work in male-majority teams, where the pressure to conform might be high.” Applying the gender lens to VC firms and startups EIF data revealed that out of every 100 entrepreneurs backed by VC in Europe, 78 work in all-male teams. All female teams, on the other hand, are a rare sight, making up a mere 2.1% of the total top-level entrepreneurship.
Empowering Equity 111 is the first conference I have moderated where most of the audience and speakers were female. The initiative launched by the European Investment Bank, European Investment Fund and InvestEU is aiming to improve female representation in the European Investment ecosystem. Under Invest EU the EIF aims for 25% of funds to comply with the EIB Group’s gender criteria, and the target is currently being exceeded. Marjut Falkstedt, European Investment Fund Chief Executive and Merete Clausen, Director of Investments DG GROW, European Commission agreed that the target could be more ambitious in future– with 40% a more realistic goal.
EIF’s Gender Smart Criteria will be supported by its new due diligence approach in deciding whether to fund. As a “fund of funds” it can influence as a role model.
Marjut Falkstedt described the initiative as a “movement”. It might be small now but let’s hope it grows quickly.
