European Women in VC – Europe leading the way in positive impact venture capital investing

The flagship ‘Beyond Returns’ Report 2024 – a collaboration between European Women in VC, Founders Forum Group and Tech Nation – provides the latest investment data and analysis alongside a survey of Europe’s leading VCs and LPs, to uncover the broad and transformative impact of venture capital on European tech, business and society. Tesi is an institutional member of European Women in VC.

While impact is a detailed process where the rules are still being written, the vast majority of nearly 400 surveyed GPs and LPs prioritise sustainability, positive societal impact, the environment, and SDG aligned themes as a compass for asset allocation.

The results of the report show that investors in private markets are increasingly prioritising sustainability in their allocations. A total of €53bn was raised by European tech startups in 2023, with a third of this raised by startups that directly address one or more of the UN Sustainable Development Goals (SDGs). The report found a third of VCs and Limited Partners (LPs) surveyed use the UN’s SDGs to guide their investments.

‘Climate Action’, ‘Industry Innovation’, and ‘Good Health & Wellbeing’ are the most prioritised SDGs in investment decisions. 88% of the VCs surveyed said they use an impact investing framework or tool to guide their investment decisions due to their own personal values or their fund’s impact mission goals.

The positive impact of venture capital is evident across critically important sectors such as climate tech, where startups raised €18.2bn in 2023 and investment has tripled to more than €20bn in the past three years. VCs and LPs are motivated by the desire to make a positive environmental impact in their investment decisions: a third (31%) of survey respondents said reducing carbon footprint is a top priority when choosing a fund or company to invest in, and more than half (52%) identified advancing climate change initiatives as a top priority in the next 12 months.

Diversity and inclusion within venture continues to be a focus, with 87% of the VCs and LPs surveyed saying that increased diversity in venture capital leads to better investment decisions and financial returns. 82% of VCs and 77% of LPs said diversity of the founding team of the startups or funds they invest in is important. Women led and co-led VC funds provide superior returns as found by European Women in VC’s 2023 research.

Kinga Stanislawska, Co-Founder of European Women in VC, said: “Despite record levels of venture funding and a strong track record bringing breakthrough innovation to market, the venture asset class remains underfunded. In particular, funds with diverse teams and women leaders offer unparalleled returns and drive positive impact, warranting far greater investment. It is crucial for the largest pools of capital to engage with the venture ecosystem, participating at all levels, from fund of funds to direct investing and across the capital stack. It is time to think in systems to solve some of the world’s most pressing challenges. There has never been a better time to be a venture investor.”

The flagship ‘Beyond Returns’ report is based on a comprehensive survey of nearly 400 VC investors and LPs, alongside feature-length interviews with industry and ecosystem leaders in venture capital. The report is a collaboration between European Women in VC, Founders Forum Group and Tech Nation and it provides the latest investment data and analysis alongside a survey of Europe’s leading VCs and LPs, to uncover the broad and transformative impact of venture capital on European tech, business and society. Tesi is an institutional member of European Women in VC.

Read the entire European Women in VC report 2024 online

About European Women in VC

European Women in VC (EWVC) is the largest network of senior female venture capital and growth investors from all over Europe and beyond. We address the gender imbalance in the venture capital ecosystem and highlight the achievements of female-led and mixed teams in terms of financial returns and societal impact.

For more information:

Alicja Stelmach, Marketing & Public Relations, alicja@europeanwomenvc.org

About Founders Forum Group

Founders Forum Group (FFG) is a global community and group of businesses supporting entrepreneurs at every stage of their journeys. Its forums unite the world’s most influential founders, investors, corporate and government leaders to tackle era-defining questions in iconic locations across the globe.

For more information:

Abi Wilkinson, Advisor, Abi@founderscomms.co

Natasha Jones, Co-Founder, natasha@founderscomms.co

About Tech Nation

In 2023, FFG acquired Tech Nation, the UK’s leading growth platform for tech scaleups. FFG continues the previously government-funded Tech Nation programmes centred around early-stage and diverse founders, as well as data-driven research into the UK’s tech ecosystem. Tech Nation also proudly endorses the UK’s Global Talent Visa route on behalf of the Home Office.