Germany’s gender investment gap is growing more alarming. According to the EY Startup Barometer 2025, female founders raised just €43 million in 2024, plummeting 58% from €102 million in 2023. Meanwhile, startups founded entirely by men secured €6.2 billion — a €1.3 billion increase compared to the previous year.
The contrast is stark. Women-led startups accounted for only 1% of total investment, down from 2%, despite making up 4% of funded startups. This sharp decline for female founders, coupled with record gains for male-led teams, highlights just how deeply the funding imbalance runs.
Out of 702 German startups that secured investment in 2024, only 27 had all-female founding teams, making up just 4% of the total. Mixed-gender teams fared slightly better, representing 17% of funded startups and raising €834 million — still far behind male-only teams, which dominated with 79% of deals and most of the capital.
Among the 1,827 founders who raised funding, only 194 were women — a mere 10.6%, down from 12.2% the year before. The numbers paint a troubling picture for gender diversity in Germany’s startup scene.
Natalie Milde, ESG & Impact Lead at Future Energy Ventures, points to a persistent early-stage barrier. “The DACH region’s startup landscape is stabilizing, but female founders face unique challenges, especially early on. Since angel investors often back founders who resemble themselves, the lack of female angels means fewer women-led startups move forward. Bureaucracy also remains a huge hurdle.”
For founders like Natalia Tomiyama, CEO of NÜWIEL, the market feels increasingly conservative. “In hardware climate tech, fundraising now takes twice as long — not just for startups, but even for VCs raising their own funds.”
Bryony Cooper, Director of Investor Relations at PT1, adds, “As a former founder, I’ve seen firsthand how unconscious bias creeps into funding decisions. Diversity talk is common, but without real action, the landscape won’t change.”
For many women, the challenge starts even before pitching to investors. Valérie Bures-Bönström captures the uphill battle: “The real issue isn’t just accessing funding — it’s that too few women even start. Societal pressures, financial instability, and the burden of childcare make it nearly impossible for women to take the leap. Many face double the risk — building a company while carrying family responsibilities. It feels almost suicidal.”
Co-founder Claire Hae-Min Gusko from one.five echoes the emotional toll. “Having a male co-founder aware of their privilege helps. Otherwise, fighting for equality while trying to build a company is just too much.”
Jenny Saft, co-founder of apryl, is realistic about the long road ahead. “We might never hit 50-50, and that’s okay. But increasing female fund partners is key — change will take time, maybe a decade or two.”
The Bigger the Round, the Fewer the Women
The data shows the gap widens as deal sizes grow. Female founders make up 13.2% of startups raising up to €1 million, but that number drops to 10.6% for deals between €1.1 million and €10 million — and plunges to just 7.1% in rounds over €50 million.
Among startups raising €50 million or more, women represent just 1.8% of founding teams. This imbalance worsens at the top, where securing significant funding becomes nearly impossible for female founders.
Tomiyama explains, “Germany’s economic climate and global instability play a role. The wave of insolvencies among European unicorns also hasn’t helped. But there’s still investor appetite — especially in AI and agritech.”
Efforts to bridge the gap are growing. Networks like Playfair’s female founder office hours, peer groups like Amela, and platforms like Unlock VC offer mentorship, workshops, and access to investors. Berlin-based VC Auxxo and the female angel network Evangelista are also backing women-led startups.
Regional Disparities in Female Representation
Female founder representation varies greatly across German states. Lower Saxony leads with 18%, followed by Hamburg at 17% and Berlin at 12%. Bavaria and North Rhine-Westphalia lag far behind at 9% and 5%, respectively.
“Regions like Baden-Württemberg and NRW remain dominated by manufacturing and deep tech, which typically have fewer women. Meanwhile, Berlin’s ecosystem — although male-heavy — offers more support programs for women,” explains Luisa Kraut from Join Capital.
Berlin’s history, shaped by fintech giants like N26, still influences the male-dominated scene. Mihri Minaz, co-founder of usebeams, observes, “Berlin’s fintech success stories set a tone. It’s very male-driven, and that mindset carries through.”
Milde adds, “Regional ecosystems differ — Berlin leads with targeted initiatives for female founders. In contrast, Munich’s focus on university spin-offs in hardware and deep tech keeps female representation lower. Meanwhile, cities like Düsseldorf and Cologne have strong corporate ties, but their traditional ecosystems make change slower.”
Industry Breakdown: Where Female Founders Thrive
Some sectors show more promise for women. AgTech leads with 25% female founders, followed by e-commerce (23%) and education (22%). Healthtech also performs better, with 21% of startups led by women.
However, software and analytics — sectors attracting the largest funding rounds — remain dominated by men, with just 11% of female-founded startups. Energy, fintech, and insurtech fare worse, with women founding just 7% of startups despite these sectors attracting significant capital.
Drift co-founder Niharika Rakheja believes lived experience plays a role. “Women are building the products they wish existed. That authenticity creates strong product-market fit.”
Still, as Lou Arzur from Vireo Ventures points out, challenges remain. “Even in popular sectors like healthtech and climatetech, funding gaps are stark. ClimateTech, for instance, saw female founders secure just 1.14% of 2024 funding. E-commerce is easier to scale but has its limits. Meanwhile, AI and DeepTech remain tough spaces for women.”
Worryingly, female representation in AI — a sector now surging with investment — remains especially low. Between 2023 and 2024, AI funding jumped from 5% to 15% of total investments, but women remain sidelined.
“We see progress — more women in VC, more targeted programs. But the gap won’t close naturally. Active effort is needed,” says Arzur. “I co-founded Xaura, an investment club with 40 members — only two are women. We must be intentional in creating space for women.
Among the DACH countries, Germany lags in female founder representation. In 2024, just 10.6% of funded German founders were women. Switzerland leads the region with 14.2%, while Austria sits at 11.2%.
Notably, Switzerland showed resilience — 7% of funded startups had all-female teams. It also weathered economic headwinds better than Germany and Austria, suggesting that diverse ecosystems may be more stable.
Milde remains cautiously optimistic. “Momentum is growing. More funds and accelerators are targeting female founders, and impact investing is rising. But lasting change requires consistent effort from investors, policymakers, and founders alike.”
Rakheja adds, “The data is sobering, but it’s forcing overdue conversations. Innovation depends on tapping into the full talent pool — and that means funding female founders.”
Minaz concludes, “As female founders, we carry extra weight. Every success becomes a beacon for others, and every failure sticks longer. Still, it’s on us to break this cycle — to prove that women can build, scale, and win in tech.”
With artificial intelligence and deep tech driving Europe’s next wave of investment, ensuring female entrepreneurs have equal access is more critical than ever. Without deliberate action, Germany’s gender investment gap risks widening — leaving women behind as the startup world moves forward.
