Female entrepreneurs in the startup sector are encountering increasing difficulties in obtaining venture capital, capturing less than one percent of total funding in 2024, a decline from nearly two percent the previous year. Research by EY reveals that while male-only teams received 88 percent of venture capital, female-led startups are significantly underfunded, highlighting a widening gender gap. Despite overall growth in German startups, women remain underrepresented, particularly in tech, due to systemic barriers that hinder their access to resources and support.
Female entrepreneurs in the startup world are facing significant challenges in securing venture capital, receiving only a mere one percent of the total funding available. Disturbingly, this disparity is on the rise.
Research by the auditing firm EY highlights that female-led startups are trailing behind their male counterparts and mixed-gender teams in terms of venture capital acquisition. The gap is not just persistent; it is widening considerably.
In 2024, startups with solely female founders captured less than one percent of venture capital, down from nearly two percent the previous year. EY’s analysis indicates that around 43 million euros were allocated to startups founded exclusively by women, marking a staggering 58 percent decrease from the prior year. The overall proportion of women among all funded startups in 2024 was just 10.6 percent.
Back in 2023, female-founded startups secured 102 million euros in venture capital. One key factor contributing to this gender gap is the fact that the already low representation of women in startups was halved in the past year.
Despite the ongoing economic challenges in Germany, the number of startups established last year saw an increase.
Men Secure Greater Funding
In stark contrast, male-only founding teams garnered an impressive 6.2 billion euros in venture capital in 2024, claiming nearly 88 percent of the total venture capital available. Unlike their female counterparts, these male-led startups experienced a significant increase in funding, raising an additional 1.3 billion euros compared to 2023. Meanwhile, mixed-gender teams attracted a total of 834 million euros, which accounts for almost twelve percent of the venture capital in 2024, as per the EY report.
The barriers for startups in Germany remain high—are we missing out on vital opportunities?
Escalating Gender Disparity
Thomas Prüver, a partner at EY, remarked that the widening gender gap represents a ‘setback instead of progress’ in the startup ecosystem for 2024. ‘This is particularly concerning in a year when German startups have shown resilience against numerous market challenges and stabilized after experiencing a downturn over the past few years.’
While overall investment in German startups has seen a resurgence, female founding teams have not shared in this positive trend. ‘They received significantly less funding compared to the previous year,’ Prüver added.
The disparity in retirement savings between men and women continues to be a significant issue.
Underrepresentation of Women in Tech Startups
The presence of women in founding teams varies across different sectors. ‘In the tech startup domain, which is currently attracting substantial capital and driving growth, women are notably underrepresented,’ Prüver noted.
Franziska Teubert, managing director of the startup association, pointed out that the declining numbers indicate that Germany is not fully realizing its potential. ‘Female founders encounter structural challenges, whether it’s balancing entrepreneurship with family life, accessing networks, or securing capital. Investors, the startup ecosystem, and policymakers must work together to eliminate these barriers and support female entrepreneurs. A diverse founding landscape is essential for developing the best solutions and products.’
While women hold relatively high proportions in sectors like Agri-Tech (25 percent), E-Commerce (23 percent), and Education (21.6 percent), their representation in Software & Analytics (7.4 percent), Finance/Insurance (4.5 percent), Energy (3.2 percent), and Hardware (2.9 percent) remains alarmingly low.
This issue was reported by Deutschlandfunk on March 3, 2025, at 11:00 AM.