Why More Women in Venture Capital Means Better Startups

The European startup ecosystem is more diverse than ever — but the people writing the cheques still look remarkably the same. Just 15% of venture capital partners in Europe are women, according to Diversity VC. This lack of diversity at the decision-making level doesn’t just hurt aspiring female founders — it also impacts the quality of investments and the returns firms deliver to their LPs.

Recent research by Harvard Business Review shows that VC firms with women in leadership make more profitable investments. Why? Because diverse teams challenge groupthink, spot opportunities others miss, and build more balanced portfolios. In fact, first-time funds with diverse founding teams outperform all-white, all-male peers by over 10% on average.

Why It Matters

When more women sit on investment committees and lead deals, they’re more likely to back startups solving problems that affect wider markets — healthcare, consumer, education, sustainability. This broadens the pool of innovation and spreads capital to overlooked areas, fueling healthier ecosystems and more resilient economies.

Key Ways to Close the Gender Gap in VC

✅ Actively promote women to partner level
 Firms need clear pathways for talented women to advance, including equitable access to carry, fund economics, and portfolio ownership.

✅ Build support networks
 Female VCs often operate with fewer mentors and sponsors. Peer groups and industry networks — like European Women in VC — help women build connections and share deals.

✅ Track and share data
 Collect and publish data on gender diversity at all levels: analyst, principal, partner. Investors and LPs can then hold firms accountable.

✅ Educate LPs
 Limited Partners can push change by asking funds to report on gender diversity — and by favouring managers who walk the talk.

✅ Spotlight role models
 Founders trust people who look like them. When women see other women leading deals and raising funds, they’re more likely to pitch — creating a virtuous cycle.

Leading By Example

More European funds are moving in the right direction: Atomico, Creandum, and Seedcamp all highlight diversity in hiring, decision-making, and portfolio tracking. But progress is slow — so founders, employees, and LPs need to keep up the pressure.

Diversity isn’t just a tick-box — it’s a proven driver of better returns and stronger ecosystems. It’s time for venture capital to look more like the founders they back — and the world they’re shaping.

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