What: There are now 20 all-women led venture capital firms in Europe, marking a significant milestone in fostering diversity and inclusivity within the venture capital space.

Why it is important: Women-led VC firms not only bring unique perspectives to investments but also amplify support for female-founded startups, addressing gender disparities in funding and encouraging more diversity in the entrepreneurial ecosystem.

The number of all-women led venture capital firms in Europe has risen to 20, representing a growing movement towards inclusivity in the industry. These firms, including pioneers like Sweden’s Backing Minds and the Netherlands’ Borski Fund, focus on empowering female entrepreneurs and diverse teams. Notable funds include Revaia, Europe’s largest female-led VC with EUR 250m under management, and Auxxo, Germany’s first fund solely backing female-founded startups with 60% of its investors being women. Iceland’s Crowberry Capital stands out for its significant EUR 90m second fund, while Puzzle Ventures, led by solo GP Gloria Bäuerlein, is dedicated to B2B startups. These firms play a crucial role in addressing funding inequities and inspiring long-term change in venture capital.

IADS Notes: The emergence of 20 female-led VC firms in Europe marks a significant shift in retail investment dynamics. This development gains particular relevance against the backdrop of a USD 32 trillion opportunity in women-focused products and services , with women controlling nearly 75% of discretionary spending worldwide . Recent successes like Course Corrected's EUR 63m climate fund and Borski Fund's EUR 50m close for female-led startups  demonstrate growing institutional confidence in female-led investment strategies. The impact extends beyond gender diversity, as evidenced by Revaia's EUR 250m growth fund , which targets retail innovation and technology transformation. This trend is particularly timely as consumers show willingness to pay 15% premium for better quality products , suggesting alignment between female investors' understanding of market needs and consumer behaviour. The establishment of new funding channels through initiatives like Galeries Lafayette's Motier Ventures  further illustrates how female-led investment is reshaping retail's future.

Europe now has 20 all-women-led VC firms