Entrepreneur
Austrian organisation Female Founders launches €20m fund to drive gender diversity in tech
The new fund has already made its first close of €12.5 million to date
The Austrian organisation Female Founders has announced a €20m VC fund to invest in gender-diverse founder teams.
Fund F aims to foster equal opportunities for female entrepreneurs in the European tech ecosystem, driving investment in pre-seed and seed start-ups with at least one female founder in sectors including femtech, health tech, fintech, climate tech and HR tech.
The fund’s LP base includes entrepreneurs, angels, and family offices. It has already raised €12.5m from the Austrian bank Raiffeisen-Landesbank Steiermark, the VC fund Speedinvest and Austria Wirtschaftsservice, the promotional bank of the Austrian federal government.
Female Founders, an organisation based in Vienna, Europe’s hub for female entrepreneurship, was founded in 2016 by Lisa-Marie Fassl and Nina Woss to drive gender diversity in tech and innovation in Europe through accelerator and leadership programmes, events and networking.
The company provides founders with products, services and opportunities in the areas of start-ups and investment, talent and its growing community to help make that mission a reality.
“Our first close happened in October at over €12.5m and was over-subscribed,” the two founders said in a social media post.
“Now, we are thrilled to start investing in and supporting gender-diverse founder teams.
“Our main focus industries include femtech, health tech, fintech, climate tech and HR Tech and we are looking for start-ups ready to tackle the world’s many issues and positively impact humanity.”
The Fund F plans to invest in 25-30 pre-seed and seed stage companies that have at least one female co-founder in the next four years. Initial ticket sizes will be between €100,000-€400,000.
Austria is gaining a reputation as a hub for female start-up founders. More than 35 per cent of all start-ups created in Austria had at least one female founder, with women making up 18 per cent of the total of all start-up founders, up from 12 per cent in 2018.
According to the Federal Ministry of Labor and Economy (BMAW), Austria currently has the highest share of female start-ups in the EU.
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Scaling startups risk increasing gender gaps, study finds
Rapidly scaling startups often make rushed hiring choices that disadvantage women, a recent study has found.
The findings draw on more than 31,000 new ventures founded in Sweden between 2004 and 2018.
Researchers at the Stockholm School of Economics report that in male-led startups, scaling reduces the odds of hiring a woman by about 18 per cent, and the odds of appointing a woman to a managerial post by 22 per cent.
Mohamed Genedy is co-author and postdoctoral fellow at the House of Innovation, Stockholm School of Economics.
Genedy said: “During those moments of rapid growth, even well-intentioned leaders can fall back on familiar stereotypes when assessing who they believe is best suited for the role.”
The patterns emerge even in Sweden, regarded as a highly gender-equal national context.
Founders with human resources-related education counteract these challenges.
In ventures led by founders with HR training, the odds of hiring a woman increase by more than 30 per cent, and the odds of appointing a woman to a managerial role increase by 14 per cent for the same level of growth.
Genedy said: “When founders have experience with structured hiring practices, the gender gaps shrink, and in some cases even reverse.
“This shows that getting the basics of HR right early on really pays off.
“When things start moving fast, founders with HR knowledge are less likely to rely on biased instincts and more likely to hire from a broader talent pool.”
Prior experience in companies with established HR practices also helps, though to a lesser degree.
It raises the likelihood of hiring women as ventures scale, but does not significantly affect managerial appointments.
The study additionally shows these patterns are not driven by founder gender alone.
Even solo female-led ventures display similar tendencies when growing rapidly, though to a somewhat lesser degree.
In female-dominated industries, rapid growth increases the hiring of women for regular roles but still reduces the likelihood that women are appointed to managerial positions.
“When scaling accelerates, cognitive bias kicks in for everyone. Female founders are not immune to these patterns,” said Genedy.
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