Despite growing conversations about diversity and inclusion, the gender investment gap in Europe’s startup ecosystems remains a formidable barrier, with Germany at the forefront of this challenge. The latest figures from the EY Startup Barometer 2025 reveal a troubling trend: female-founded startups secured only €43M in 2024, a sharp 58% decline from €102M in 2023. Meanwhile, all-male founding teams saw a dramatic €1.3B (25%) increase in their funding, totaling €6.2B.
This stark contrast highlights a deepening investment divide, with female-led startups accounting for just 1% of total investment volume, a drop from 2% in the previous year, despite representing 4% of the funded startup base.
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The Funding Deficit: A Hard Reality For Female Founders
The statistics paint a grim picture: in 2024, 702 German startups received investment, but only 27 (4%) were led by all-female teams, while 122 (17%) had mixed-gender teams. The remaining 79% of startups were exclusively male-founded. Mixed-gender teams did secure €834 million, 12% of the total funding pool, but that’s still far from parity. Only 10.6% of the 1,827 founders in Germany were women, a decline from 12.2% in 2023, signaling a troubling trend for gender diversity in the startup sector.
Natalie Milde, ESG & Impact Lead at Future Energy Ventures, explains: “Female founders face unique obstacles, particularly in the early stages. Since investors often back founders who resemble themselves, the lack of female angel investors contributes to fewer women-led startups reaching later stages.”
Natalia Tomiyama, Founder & CEO of NÜWIEL, echoes this sentiment, noting that fundraising timelines have nearly doubled, especially for hardware and climate tech startups, as investors become more conservative. The barrier to funding is clear: women are not only battling traditional biases, but they also face the compounded difficulties of long fundraising cycles.
Bryony Cooper, Director of Investor Relations at PT1, shares her personal experience with the bias female founders face. “It’s often unconscious, but it’s there. While DEI is discussed widely, true change requires deliberate action.”
The Root Causes: Societal Norms And Family Burdens
Valérie Bures-Bönström of XAnge offers a broader perspective: “It’s not just about funding; it’s about women not even entering entrepreneurship in the first place. Societal expectations, financial instability, and childcare responsibilities are significant deterrents.” Unlike their male counterparts, who often have a partner providing financial security, women are burdened with the “double risk” of balancing business and family responsibilities, making the entrepreneurial journey feel insurmountable.
For some, having male co-founders who are aware of these challenges can be a game-changer. Claire Hae-Min Gusko, co-founder of one.five, reveals: “When male co-founders understand their privilege and are committed to holding themselves accountable, it alleviates a lot of pressure.”
Funding Trends: The Bigger The Deal, The Bigger The Gap
The figures clearly show that the gender gap deepens with larger funding rounds. Female founders secure 13.2% of the smallest deals (under €1 million), but this percentage drops to just 7.1% for funding exceeding €50 million. The disparity is particularly striking at the highest funding levels, where women make up only 1.8% of the founding teams.
Tomiyama attributes part of this to the broader economic situation in Germany, noting that investment in sectors like AI and agritech is increasing, but gender diversity lags.
The Regional Divide: A Fragmented Ecosystem
Germany’s startup scene is far from uniform. Lower Saxony, for example, leads with 18% female founder representation, while Bavaria and North Rhine-Westphalia fall behind. “Germany’s startup ecosystem is heavily shaped by local industries and regional funding priorities,” explains Luisa Kraut, a Deeptech VC at Join Capital. “In areas like Baden-Württemberg and North Rhine-Westphalia, male-dominated industries like manufacturing and engineering dominate, leaving fewer opportunities for female entrepreneurs.”
Berlin stands out for its strong support networks, but other regions, such as Munich and Lower Saxony, lag, offering limited resources for female founders. The East-West divide further complicates these regional disparities.
Industry-Specific Trends: Where Women Are Found
AgTech emerges as the frontrunner for female founders, with 25% representation, followed by e-commerce (23%) and education (22%). However, sectors like fintech, insurtech, and AI—where the highest funding volumes reside—remain overwhelmingly male-dominated. Only 11% of startups in software and analytics were founded by women, despite these sectors attracting substantial investment.
Niharika (Nia) Rakheja, co-founder of Drift, notes that women often bring authenticity to sectors that align with their lived experiences, particularly in healthtech and climatetech. “Women are building products that they wish existed,” she says. However, despite increasing interest in sectors like AgTech, the funding gap remains stubbornly wide.
The Struggle For Equality in AI
The AI sector is particularly concerning. Despite a 134% surge in investment in AI startups from 2023 to 2024, women’s representation in this high-growth field remains severely limited. This presents a significant risk for the future of innovation, as the gap in funding continues to fuel an already male-dominated landscape.
The Road Ahead: Slow But Steady Progress
Despite the ongoing disparities, there are signs of hope. Programs like Playfair’s Female Founder Office Hours and networks such as Auxxo, which invests in female-led teams, are helping break down barriers for women entrepreneurs. But as Jenny Saft, co-founder of Apryl, points out, reaching gender parity will take time. “It’s a long journey, but we’re making strides,” she says.
Germany’s female founders remain underrepresented, but the landscape is slowly shifting. As more women enter entrepreneurship and VC roles, the hope is that the tide will eventually turn, making the startup world more accessible and inclusive for future generations of female leaders.
