Female Innovation Index 2025: Female Founders in Europe harness AI to tackle toughest challenges
Despite a dip in overall venture capital across Europe in 2024, female founders are proving their staying power and innovation chops, especially when it comes to AI and deep tech. According to the 2025 Female Innovation Index from Female Foundry, women-led startups raised €5.76 billion last year, making up 12% of all VC funding. While this was a slight drop from the year before, it matched the broader market trend. Notably, 33% of that funding went into deeptech startups — an area where female entrepreneurs are pushing boundaries in synthetic biology, generative AI, and drug development.
AI is clearly the star of the show. A growing number of women-led companies are harnessing AI to solve major global challenges, and it’s paying off — 25% of the largest funding rounds for female-founded startups last year were in AI. Startups like Cradle in Switzerland and Sana Labs in Sweden scored major rounds, showing just how central AI has become to the innovation strategy of Europe’s female founders. At the same time, mergers, acquisitions, IPOs, and unicorn milestones are on the rise, signaling that these businesses aren’t just starting up — they’re scaling big.
Regionally, the UK, France, and Germany continue to lead in total funding, while Finland and Denmark stand out for investing the highest percentage of capital in female-led startups. Female Foundry’s report paints a hopeful picture: despite funding challenges, Europe’s female entrepreneurs are driving forward some of the most exciting tech solutions out there. With increasing visibility, bigger funding rounds, and more success stories, the future for women in European tech looks brighter than ever.
