PitchBook, the premier data provider for the private and public equity markets, has released its annual US and European All In reports on female founders in the venture capital (VC) ecosystem. These reports examine how female founders and investors are performing within the broader VC industry and take a closer look at investments across stages and geographical regions, exit activity, industry trends, unicorn companies, and more. The US report is published with support from Wilson Sonsini Goodrich Rosati, Fidelity, and Flourish Ventures. The Europe report is published with support from Enterprise Ireland.
The VC ecosystem faced challenges in 2024 due to economic uncertainty and sociopolitical changes. The lack of meaningful exits impacted VC fundraising and slowed deal activity. Similarly, female founders grappled with obstacles, resulting in a decline in VC deal activity across the US and Europe. However, like the broader VC industry, there were bright spots for female founders. Exit activity made gains in 2024 across both regions. As a proportion of total VC exit activity, female-founded companies represented 24.3 percent in the US, and 21.5 percent in Europe-a year-over-year increase for both. In the US, female founders outpaced funding from the prior year by 27 percent, securing over $38 billion in deal value in 2024. In Europe, for the fourth year in a row, female founders collectively raised €10 billion across nearly 2,000 VC transactions.
While VC deal value grew for both regions in 2024, deal count dropped 13 percent in the US and 26 percent in Europe, highlighting a shift toward fewer but larger transactions. Angel investors saw a tough year as well with US investment participation dropping to its lowest level in over a decade and European participation dropping to its lowest level since 2018. General partner (GP) decision-making roles continue to be male dominated, with the number of women in these positions remaining largely unchanged from previous years.
To download the full US report, click here.
To download the full Europe report, click here.
"The VC industry is still trying to find solid footing after its peak in 2021. While some progress was made for female founders in 2024, particularly in exit activity, female founders and investors still face an uphill climb," said Annemarie Donegan, senior research analyst at PitchBook. "Representation for female decision-makers at the GP level remains an area for improvement, with little change year over year. Increasing female representation in check-writing roles could help drive investment in female-founded startups by expanding access and opportunity for founders who may otherwise be overlooked."
The methodology in this report follows previous research where PitchBook analyzed investment activity in US- and Europe-based VC-backed startups with at least one female founder. The reports also include spotlights on all-female founding teams, female angel investors and GPs, and breaks down funding activity within specific industries, US regions, and European countries.
PitchBook tracks female founder data throughout the year in their US Female Founder and Europe Female Founder data dashboards.
US Key Takeaways:
Female founders received larger but fewer checks in 2024
- US VC deal value to female-founded companies increased 27 percent year-over-year from $30.6 billion in 2023 to over $38 billion in 2024.
- Female founder's share of total US VC deal value, which is typically more volatile and driven by market effects, declined from 20.8 percent in 2023 to 19.9 percent in 2024.
- The share of total US VC deal counts for female founders declined for the third year in a row to its lowest level since 2018 a 13 percent decline from 2023.
Valuations for female founders are growing
- Female-founded company valuations rose across all stages in 2024 alongside broader US activity. For late-stage VC, post-valuations for female-founded companies grew to $60.7 million from 2023's $55.1 million.
- Female-founded companies maintain a historically lower VC burn rate compared to the broader US category (VC burn rate difference in capital raised and number of months between rounds).
Unicorn growth and exit activity are picking up steam
- Exit count ticked upwards in 2024 for female founders with 10 more company exits than in 2023. However, exit values dropped from $25.3 billion in 2023 to $20.1 billion in 2024.
- More female-founded companies reached unicorn status (post-money valuation of at least $1 billion) in 2024 compared to the year prior, reaching 43 unicorn's total. B2B software firms maintain an outsized presence on the list of highest-valued female-founded companies.
Decision-makers and angel investors have room to grow
- Female representation in check-writing roles remains under 20 percent. Women make up 17 percent of VC decision makers (partners, principals, and managing directors) at firms with at least $50 million in AUM, and 19 percent at smaller firms with AUMs under $50 million.
- The number of global female angel investors active in the US market dropped to its lowest level in over a decade with a 31 percent decrease year over year.
European Key Takeaways:
Total capital invested remains strong but deal count declines
- European female founders raised more than €10 billion in 2024, marking the fourth consecutive year of reaching this milestone.
- While total capital invested remained strong, the number of deals declined materially by 26 percent, highlighting a shift toward fewer but larger transactions.
Female founders faced valuation setbacks in the early stage but gained momentum in later stages
- At the early stage, founders faced challenges as investor risk tolerance tightened with deal count decreasing by 45 percent and female founders seeing more drastic valuation declines.
- Late-stage and venture-growth companies experienced substantial increases in valuations, with female-founded companies holding some of their strongest positions in years. Across venture-growth companies, valuations grew from €19.9 million in 2023 to €28.9 million in 2024.
Representation in investor roles presents an additional hurdle
- Women represent just 15 percent of decision-makers at VC firms with over €50 million in AUM and less at smaller firms.
- The number of active female angel investors declined by 40 percent, contributing to a slowdown in deals backed by women on both sides of the table.
Exit momentum is a positive signal
- As overall European VC exit markets experienced a recovery in 2024, female-founded companies made material exit gains, with transaction count and cumulative value achieving double-digit growth year over year.
- Female founders secured a larger portion of overall activity throughout the year as well, with their share of exit value and count rising by 2.7 percent and 3.8 percent, respectively.
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