EIT Digital is honored to be a leading partner of the new European Women in VC report on gender diversity in the European venture capital industry. The comprehensive report, which has been unveiled at the TechBBQ conference in Copenhagen on September 13th, provides crucial data showing superior returns for VC funds with greater gender diversity in senior management teams.
EIT Digital has a strong commitment to supporting women in technology and business. According to Federico Menna, CEO of EIT Digital, "In the tech sector it’s all about the people behind technology. People have to master it, technology doesn’t do anything on its own! The key to creating a fair and inclusive future is diversity and representation in tech investing, development, and deployment. At EIT Digital, supporting women in tech and business is by design. We actively recruit women into our education and entrepreneurship programmes and empower the many talented women in our organisation - look no further than my colleague and CIO, Diva Tommei."
Diva Tommei, Chief Innovation and Education and Chief Marketing Officer of EIT Digital, also highlighted the organisation's dedication to empowering women across the tech industry, stating: "EIT Digital proudly supports women in tech. From student to unicorn, our programmes promote the education of women in STEM fields, their goals of launching new companies and ultimately their journey to scaleup success. We believe these rising stars will have both the technical and business savviness needed to succeed in venture capital. When we support women entrepreneurs, we’re really supporting future women investors and entrepreneurs and as the data shows, the future of European innovation."
The European Women in VC report provides compelling data on the positive impact of gender diversity on fund performance. The analysis shows VC funds managed by mixed gender teams significantly outperform all-male teams. Specifically, management teams mostly composed of women exceeded the performance of men-only teams by an impressive 9.3 percentage points in terms of annual internal rate of return (IRR). Moreover, the report found that on average, each 10% increase in the representation of women in senior management is associated with a 1.3 percentage point increase in IRR.
The report confirms that diversity is not just a checkbox, but a strategic imperative for the venture capital industry. By embracing diversity and promoting gender equality, the VC sector can unlock its full potential and thrive in an evolving global economy. The correlation between gender diversity and superior investment performance should motivate funds to adapt to the changing landscape.
Kinga Stanislawska, founder of European Women in VC, stresses how "This report serves as a crucial stepping stone toward a more inclusive and prosperous future for the European venture capital industry. While progress is being made, we must collectively acknowledge that change takes time. The correlation between gender diversity and superior performance is a powerful motivator for the industry to adapt to the evolving landscape. Nevertheless, in order to draw a full picture of the impact of diversity on performance European funds must report their returns, we need openness and data in order to constantly search for arguments and ways, for all of us, to benefit from diversity."
