Gender gap in deep tech costs Europe €198.8 billion, report finds on International Women’s Day
A new gender and diversity index assessing the European deep tech industry has been released by the GENDEX project, funded by the European Innovation Council (EIC).
The index identifies gaps in gender representation, valuation, and access to capital, as well as disparities in intellectual property ownership.
The findings reveal that women-led companies have accounted for just 0.6 percent of non-IPO exits over the past decade, despite contributing to over 11 percent of the total value raised. The research suggests that if women-led companies had been equally represented at the exit stage, the industry could have unlocked an additional €198.8 billion in value.
Disparities in investment and business growth
The index reports that only 22% of European deep tech companies over the past decade were women-led. Women-founded companies also face longer timelines to secure funding, taking an average of six months longer than companies led by men to sign their first term sheet.
Between 2014 and 2024, companies led by men secured 1.8 times the funding received by women-led businesses. The data also indicates that when women-led companies do receive investment, they often secure less favorable terms than their male-led counterparts.
The gender imbalance is also evident in technical hiring. The report found that 29% of companies with women founders have over 50% of their technical roles filled by women, compared to just 1% in companies led only by men.
Chair of GENDEX Tanya Suárez said:
"If investors and policymakers don’t act now, Europe will continue losing billions in untapped talent. This data proves we need structural change. Not only is it needed to fairly represent women, but evidence shows a gender-balanced ecosystem delivers the best results.
“Our inaugural index has been a huge undertaking by our team and partners, we’re today very grateful to all involved and look forward to helping companies benefit from the actionable learnings the index has generated."
Gender representation in STEM and intellectual property
Although women represent 42% of STEM graduates in Europe, their presence in deep tech careers declines significantly after the educational stage. The index shows that only 31% of researchers and scientists in Europe are women.
The gender gap is also apparent in intellectual property ownership. Women were named as inventors in only 24 percent of patent applications, limiting their ability to commercialize innovations and secure funding.
Stéphane Ouaki, Head of Department at the European Innovation Council, said:
"Tapping into Europe’s diverse talent pool in the tech and investment sectors in the broadest and most effective way possible is vital if we are to capitalize fully on our many strengths in innovation. To address the persistent gender and diversity disparities within Europe’s innovation ecosystem, it is crucial to assess these issues in a coherent way using unified data. This is where the GENDEX project comes in."
Recommendations for industry and investors
The index provides four recommendations aimed at addressing gender disparities in deep tech:
Close the data gap: Investors should require gender diversity reporting before deploying capital.
Follow the returns: Women-led teams deliver strong outcomes. More funding should be allocated accordingly.
Secure IP rights: Women need better legal and financial support for patenting innovations.
Public funding with accountability: Government co-investment should mandate gender-balanced portfolios.
The GENDEX team is urging businesses, investors, and policymakers to prioritize gender diversity in their decision-making processes, both to improve representation and to enhance the financial performance of the deep tech sector.
Suárez said in an exclusive quote for ETIH:
"At GENDEX, we know that driving real change requires a structured, data-driven approach over time. Our index gives businesses and investors a clear, actionable benchmark to track progress and make decisions based on facts, not bias.
“The evidence is clear: Companies with diverse teams consistently outperform their less diverse peers. This isn’t about compliance or box-ticking—it’s about building stronger, more competitive businesses and teams. As more organizations recognize the economic benefits of diversity, we expect progress to accelerate."
