For the third time European Women in VC released a study on the European Venture market from gender perspective, shedding light on the profound impact of gender diversity on fund performance within European venture capital (VC) firms.
The official launch of the Report took centre stage at Tech BBQ, a premier tech conference drawing an impressive crowd of 8,000 participants, including policymakers, public institutions, investors, and limited partners hailing from various corners of Europe.
Alongside key note speech and presenting report's findings we also hosted a compelling panel discussion featuring industry leaders including Marjut Falkstedt, the CEO of the European Investment Fund (€145 bn in investments in the VC and fund space), Thomas Kristensen, partner at LGT (with €90 bn in AUM), and Erik Balck Sørensen, CIO at Export and Investment Fund of Denmark.
Pointing out the gender-performance correlation serves as a catalyst for environmental adjustment in the venture capital landscape. It reinforces the notion that diversity is not just a checkbox but a strategic imperative.
Key Takeaways from the Discussion
✅ Optimization of Decision-Making with Diversified Teams: The discussion emphasised the importance of diverse teams in the decision-making process, which leads to more well-rounded and innovative solutions. The EWVC Report 2023 corroborates what many have suspected: the presence of women within venture capital firms significantly improves Internal Rate of Return (IRR) fund performance and reduces the volatility of fund returns.
✅ The Role of Women in Funding Female-Led Startups: Historically, female founders have faced barriers in securing venture capital. Businesses founded by women tend to prioritise societal betterment, with a heightened focus on innovative solutions that can profoundly impact pressing global issues. However, female investors are increasingly supporting female-led startups, levelling the playing field and driving innovation.
✅ Challenges in Raising Capital for Female-Led Venture Capital Funds: Female-led venture capital funds encounter unique challenges, often stemming from gender disparities. In response, organisations like the European Investment Fund (EIF) but also players from the private sector play a pivotal role in supporting female-led funds. They provide financial resources, mentorship, and networking opportunities, aiming to empower women in the venture capital space.
🌟 A Milestone in Our Collective Journey
This discussion transcends mere conversation; it marks a milestone in our shared journey towards a more inclusive and innovative startup landscape. By nurturing an environment where diversity thrives, we not only break down barriers but also pave the way for a brighter, more dynamic future for tech entrepreneurship.
We extend a heartfelt thanks to our partners who made this piece of research possible. It is through collaboration and shared dedication that we take concrete steps towards a more inclusive and innovative future for the venture capital industry. Together, we are pushing the boundaries and creating opportunities for all.