Cyprus is at the centre of a new EU-backed study highlighting the gender investment gap in the tech sector, particularly within the deep tech category. This sector, defined by innovations rooted in scientific breakthroughs and advanced engineering, is crucial for Europe’s ongoing competitiveness, security, and economic resilience.
Photo: cyprus-mail.com
Defining Deep Tech and Its Importance
Deep tech encompasses firms that emerge from research laboratories and universities, focusing on areas such as artificial intelligence, advanced materials, semiconductors, robotics, quantum technologies, climate and energy systems, as well as health and biotech. Unlike consumer-facing tech startups, deep-tech companies require lengthy development timelines, specialised talent, and significant upfront capital before they can enter the market.
Photo: cyprus-mail.com
The Gender Investment Gap in Focus
The report asserts that access to capital in deep tech is not merely a matter of fairness but is critical for Europe’s ability to remain competitive globally. As deep tech is integral to advancing the green and digital transitions and reducing reliance on external technologies, addressing the gender investment gap is vital.
Data Fragmentation Hampers Progress
Although gender-disaggregated data exists, it is often fragmented, based on varying definitions, or not publicly comparable. This inconsistency poses a challenge for policymakers and investors who need reliable data to assess progress or to design targeted interventions. The project aims to address this issue by establishing a consistent and transparent methodology for measuring the gender investment gap across Europe.
Introduction of the Gender Gap in Investments Dashboard
A significant output of the study is the “Gender Gap in Investments Dashboard,” developed using data from Dealroom. This platform consolidates information on company founding teams and venture funding outcomes across Europe into a single interface. Designed as a foundational tool, the dashboard is expected to evolve by incorporating additional data sources over time, thus supporting a shared European data infrastructure concerning gender and investment.
Current Statistics on Gender Disparities
Initial data reveal persistent imbalances in funding. Across Europe, startups with at least one female founder secure 14.4 per cent of venture capital rounds and 12 per cent of the total venture funding. In deep tech specifically, the disparity is even more pronounced, with roughly 80 per cent of companies established by all-male teams attracting nearly 90 per cent of venture capital.
Cyprus: A Mixed Picture
When examining the situation in Cyprus, the findings present a mixed picture. While the country ranks among those with the highest percentage of deep-tech companies founded solely by women (17 per cent), this figure is based on a very limited sample, with only six deep-tech companies identified in total—one founded solely by women and five by men. In a broader context, the technology ecosystem in Cyprus includes 152 companies, where the share of female founders drops to 14.5 per cent, positioning Cyprus on the lower end of the European spectrum.
Insights from the Local Investment Ecosystem
The report also delves into perspectives within Cyprus’ investment ecosystem. Stavriana Kofteros, founder and partner of W11 Ventures, remarked on the challenge of translating research into market-ready companies, particularly those led by women. “It’s not about talent,” Kofteros stated. “We have amazing institutes and Centres of Excellence. The real question is how many spin-offs come out of them, and how many of those are actually led by women?”
Barriers to Funding and Growth
Given the capital-intensive nature of deep tech, the disparities in funding become even more significant. Early and follow-on financing is essential for determining which technologies Europe ultimately brings to scale. The report underscores that the challenges extend beyond funding alone; they also encompass structural barriers such as difficulties in accessing early and scale-up capital, credibility issues in fundraising, particularly in deep tech, a fragmented support landscape, and a lack of diversity in investment decision-making roles.
Pathways to Closing the Gender Gap
To address these systemic issues, the study outlines several actionable recommendations. These include the establishment of a permanent European data hub focused on gender and investment, the introduction of shared reporting standards across EU and national funding programmes, and initiatives to bridge the gap between early support and growth funding. Furthermore, the report advocates for utilising public investment, including resources from the European Innovation Council (EIC) and its investment arm, to attract private capital and enhance incentives for investment.
Building Stronger Ecosystem Connections
Another critical recommendation is to foster stronger connections across the ecosystem, enabling founders to identify funding pathways and engage with decision-makers more efficiently. The report concludes that while Europe does not lack women innovators, it does lack the systems necessary to measure, fund, and scale their contributions consistently. By integrating a shared data foundation with active ecosystem engagement, the initiative aims to foster informed policymaking and strengthen the European deep-tech landscape.
