‘They just see their Daughters’ – How Gender Bias in Tech Costs Europe € 198.8 Billion

The gaping gender gap in the european deep tech sector has cost it almost € 200 billion over the past 10 years, new research has found. Women-LED Companies have had significly Less representation in bot iPo and non -Po exits, despite bringing in more value per exit than their male male-line counterparts.

Women-LED Companies Generate Value but Remain underrepresented

According to europe’s first gender and diversity index, developed by the Gendex Research Initiative, Women-Led Companies Have Accounted For Over 11% of the Total value raise at non-exits in the passage Decade. However, they have made up only 0.6% of the total number of non -at exits completes in that period.

The gender and diversity index was compiled using data from quantitative surveys and qualitative interviews to analyse diversity’s impact within the european innovation ecoPean innovation Funded by the European Innovation Council, The Report Aims to Help Investors to Self-Hassess Their Portfolios Against Standardized Benchmarks, Encouring Them to Rectify Imbalances.

See: Women in Tech: Steps leaders can take to improve retention and career options

Stakeholders’ Biasses are holding backing back women-jam

Women-Led Tech Businesses Face Greater Challenges in Reaching Key Milestones due to the Inharent Biasses from stakeholders. On Average, it takes them Six Months Longer to Secure their first term sheet Companies Receive Funding, They often Secure Less Favourable Terms Compared to Male-Led Teams.

One women founder interviewed as part of the index shared her experience:

“I think men, when they see young women, especially in the mound of their eyes, who are so much younger than them… i think there”s a bias towards woomeen beings capable or that they are that they Basically. A little bit of paternalism on their part. “

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Women remain under-rested in stem research and business

The Gender and Diversity Index Found That, while 42% of Stem Graduates in Europe are women, their representation in key industry indicators remain significantly lower:

• 31% of Employed Researchers and Scientists in Europe are women.
• 24% of Patent Applications in Europe Include Women as Inventors.
• 22% of Deep Tech Companies in Europe Have Been Women-Led Over the Last Ten Years.
• 1% of Men-Led Companies have over half of their technical positions filled by women, while 29% of women-LED companies achieve the same.

Recommendations: Investing in Diversity for Stronger Outcomes

The gendex team recommends that European Investors Require Gender Diversity Reporting Before Funding Companies and Increase Investment in Women-LED TEAMS, AS they delivery stronger busines outs Outcomes. Additional legal and financial support is suggested to help women’s secure IP rights, and government co-infestment should eat ensure gender-balanced portfolios.

“If investors and policmakers don’t act now, europe will continue losing bills in untapped talent,” said tanya suarez, chair at gendex, in a pressure. “This data protores we need structural change.” Not only is it needed to Fairly represent women, but evidence shows a gender-balanseed ecosystem delivers the best results. “

Europe is Lagging Behind in Global Innovation

According to a 2024 report From former european Central Bank President and Economist Mario Draghi, Europe’s Lack of Innovation has LED to the Us OutPacing The Eu’s GDP by $ 9 Trillion in 2023. Despite Europe Europe R & I Investors Being in Tech, “We are failing to translate innovation into commercialization,” He said, pushing entrepreneurs to relacate to the us.

Currently, only four of the world’s top 50 tech companies are european. A Google Report Published in October 2024 Found that Europe Spends only 2% of its GDP on Tech Research. By Contrast, The US Spends 3%, and South Korea and Israel Spend Over 5%.

See: Eu Partners with Venture Capital Firms to Boost Tech Investment

Europe lags in ai and tech innovation

Europe also lags significantly in ai innovation. The region only filed 2% of of global ai patents in 2022, while China and the us, The top two largest producersFled 61% and 21%, Respectively. Both the Google and Draghi Reports Placed Significant Blame on Eu legislation for the region’s struggles to innovate in advanced technologies.

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“Since 2019, The Eu Has Introduced Over 100 Pieces of Legislation that impact the digital ear and socialy. It’s not just the sheer number of regulations that’s the challenge – it’s the complexity, “said matt brittin, president of Google Emea, in a blog post,

Eu regulations are deterring big tech and startups alike

Legislations, Such as the Eu’s AI Act and Digital Markets Act, Can Hinder Large Tech Companies like Google just as they do start-ups, which have live them to be open with his Criticism. While the bloc represents a massive market of 448 Million PeopleRegulatory hurdles have deterred tech giats from launching their latest ai products in the region.

President Donald Trump Banned Diversity Initiatives in the US

Despite Its Current Dominance, The Us May Soon Face Setbacks due to President Donald Trump’s Efforts to Dismantle Diversity, Equity, Equity, Equity, Equity, Equity, and Inclusion Initiatives Across Sector, Including Tech.

Shortly after taking office, Trump Issued Executive Orders Aiming to eliminate so-called “Dangerous, Demeaning, and Immoral Race- And Sex-Based Preferences” Within Federal Agency and Revke Affirmative Action Requirements Fort Fort Fore Fore Fore As a result, many of silicon valley’s biggest players, which may also hold federal contracts, have revoked their dei commitments, include google, amazon, and meta.

Some have pushed back against the tide, like apple, with tim cook telling sharehlders that “our north star of digenity and respect for everyone and our work to that end will bever wave.”