Female-led businesses represent mere 3.3% share of total European venture capital according to recent report

13 April 2005

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Figures compiled by Venture One for the Paris-based Forum for Women Entrepreneurs & Executives (FWE) show that there were no more venture capital-backed female businesses in 2004 than there were in 2000 or 2001. Even worse, their share of last year's E3.5bn European venture capital pot was a mere 2.5%. 'Relationships are critical in raising capital for start-up firms, and it's well known that women traditionally have less access to the financial networks, making this bridge more important than ever to create,' said Susan Lucas-Conwell, president of FWE Europe. 'This survey has outlined that women need to build better bridges to the investment community to obtain the critically needed rounds of financing that all firms need to grow and expand, and bring their goods and services to market.' More positively, however, the research revealed that the number of businesses with women in top positions (deputy chairman and above) increased from 11.6% in 2003 to 13.1% last year. Companies with women occupying senior posts received 18.2% of all venture-capital investment in 2004; the highest proportion of investment for female-managed companies since 2000. Lucas-Conwell is hopeful that the situation will improve gradually, as more and more investors realise they are missing a trick. Already, women are starting to gain a more prominent role in venture-backed start-ups. Just over 6% of the survey companies had female founders, an increase on 2002 and 2003 levels, although a slight fall compared with 2000. Compared by industry; 9.4% of healthcare companies, 8.3% of products and services companies, and 4% of IT companies were founded by female respondents to the survey.