Linklaters has partnered with EVF, European Women in VC and Unconventional Ventures, on the release of a report on gender inequalities relating to access to funding in the CEE Region

Linklaters has partnered with Experior Venture Fund (EVF), a VC fund that invests in small and medium-sized companies with high growth potential, European Women in VC, a community of senior women investors that currently brings together over 350 women, and Unconventional Ventures, an investment firm that invests in businesses founded by underrepresented populations, for the release of their report: “Funding in the CEE Region. Through the lens of gender diversity and positive impact".

The report aims to shed light on and thereby better understand the issues surrounding financing in the CEE Region – the way funds are invested and allocated – with a particular focus on gender and inequality. Using data and statistics provided by the project partners, in addition to numerous individual testimonials, the report’s aim is to promote concrete change via factual analysis.

The report reveals that in 2020, women-founded start-ups raised just 1% of investment in Central and Eastern Europe (CEE). Meanwhile, those founded by all-men teams raised 94% of funds, with mixed-gender teams raising 5 %.

According to the study, this gender gap is also present among female Venture Capital investors, where mixed-gender and all-women teams have five times less the investment capacity as their all-men counterparts.

Likewise, investors and decision-makers in the region are overwhelmingly male, with women being markedly underrepresented. The report indicates that 85 % of roles in VC sectors are occupied by men, regardless of level. This number increases to 93 % at Partner level.

The report highlights that despite these striking inequalities and a more than limited access to resources, women consistently outperform men. The reported data also reveals that in terms of capital productivity, women’s performances exceed those of their male counterparts by 96 %. 

Pauline Debré, Intellectual Property partner at Linklaters and Head of the Diversity and Inclusion Committee of the Paris office, states: “The key findings unveiled by the report reflect the situation of many countries, including that of France. Whilst the report may confirm the difficulties faced by women teams when raising funds, it also demonstrates that women-founded companies outperform male-founded companies when looking at the revenue to funding ratio. We can hope that this will pave the way towards an acknowledgement of the legitimacy of women in VC. In France, we are moving towards such acknowledgement, which thus far has been represented by a strong bond of solidarity between women in the sector, as well as the launch of various support networks designed to encourage women in business. To keep progressively breaking down the remaining barriers, it is key that we continue to collect and publish data in order to measure progress.”

An opportunity for change

The publication of the report is also an occasion to highlight the importance of bringing about change, which should not be limited to the CEE region as it is clear that other countries in Europe, including France and the UK, are also affected. The report shows that the Baltic states and Balkan countries have produced a higher percentage of women and mixed gender founded start-ups than most of the established European ecosystems. 
This underlines the relevance of considering the countries of the CEE Region, not as isolated entities, but rather as an important point of comparison for their European neighbours, as shown in the report. This comparison permits the construction, thanks to the targeted data, of a more comprehensive view and project.

Darko Adamovic, Energy & Infrastructure partner at Linklaters, adds: “Over the last few years, we have seen more women accessing senior and management positions, although further improvements are obviously still possible and welcome. To me, it is crucial that women’s entrepreneurship be further promoted, with the showcasing of success stories in this sector: to inspire other women to follow the same path, and also to show investors the potential of women-led projects.”

Linklaters’ commitment: Diversity & Inclusion

Linklaters’ involvement in this project aligns with the firm’s global commitment to equality and inclusion, a commitment that takes shape in the form of the “Diversity & Inclusion” initiative. Conscious of the importance of ensuring that each of the firm’s offices are respectful and inclusive workplaces, the firm has set up a series of educational measures and guidelines.

For more information on the Linklaters Diversity and Inclusion initiative, click here.