A record five European female-founded companies crossed the $1 billion valuation threshold in 2025, while AI companies absorbed 22% of all venture capital flowing to female founders. The numbers come from the 2026 Female Innovation Index, published by Female Foundry, and they paint a picture of a funding ecosystem that is improving incrementally on almost every measurable dimension.
The €7.5 billion raised by 1,307 companies represents a 19% year-on-year increase from the €6.25 billion raised in 2024. That marginally outpaces the 18% growth in venture capital deployed across European startups of all genders, pushing the female-founded share of total European VC to 13%, up from 12% the year before.
It is a modest gain. But it is the highest proportion ever recorded.
AI lifts the biggest rounds
The most striking shift in 2025 was the concentration of capital in AI-driven companies. Of the 50 largest financing rounds raised by female founders last year, 32% went to AI-driven startups, and an equal 32% went to deep tech companies, a category that often overlaps.
The investment is tilted toward applications rather than infrastructure. Of all female-founded AI companies that raised capital in 2025, 47% were application layer companies, while foundation model builders received a smaller but meaningful share. Security was the dominant application, capturing 18% of AI investment, followed by health (16%), robotics (11%), and fintech (10%).
Generative AI was the biggest single subcategory, accounting for €1.1B of the €1.7B total invested in female-founded AI companies.
"We're still extremely early in the AI transition, which is why there is so much opportunity," said Erica Beavers, co-founder of Alpic.ai, which raised €5.1 million in September. "Founders today truly have the chance to build billion-dollar companies. Even people without a deep technical background can build extraordinary things now."
Health holds the top spot
Outside of AI, health remained the dominant sector for both company creation and capital raised. Health startups captured 37% of all venture capital deployed into female-founded companies in 2025, totalling €3.6 billion, up 75% from €2.06 billion in 2024.
Fintech came second with 12% and €0.9 billion, though that represented a 10% decline from 2024. Energy fell 15% to €506 million, taking third place.
Health's dominance runs deep into the pipeline. It is the leading sector for unfunded female-founded companies started since 2020, which suggests the concentration is structural rather than cyclical.
Funding rounds grew across almost every stage
Round sizes increased on average by 12% across all stages compared to 2024. Series B saw the sharpest jump, with the median deal size rising 26% to €24 million. Series C rounds grew 17% to a median of €35 million. Female-founded companies at Series B and C stages actually raised slightly larger median rounds than the European average.
The data on conversion rates from one stage to the next is notable. More Seed-stage female-founded companies progressed to Series A, at a rate of 21.1%, than the broader European startup population at 19.8%. The index frames this as evidence that female-founded companies outperform European funding success rates at Series A.
The number of companies receiving venture funding also rose. In 2025, 1,307 companies raised capital, up 6% from 1,230 in 2024. The number of investors backing at least one female-founded company grew to 2,151, reversing two years of decline.
Five new unicorns, 21 more in the pipeline
Five European female-founded companies reached unicorn status in 2025, bringing the total to 29 and the highest ever recorded. Alongside that, 21 companies are nearing unicorn status, a 50% increase on 2024 and, again, the highest figure on record.
The exit market was also active. M&A deals involving female-founded companies reached 124 in 2025, up 9% from 114 in 2024, exceeding mixed-gender M&A growth by 2 percentage points. Three companies went public: RedCloud in France, Appear in Sweden, and MEDS in Sweden, matching the 2024 total.
The biggest single round of the year went to Finnish health technology company Oura, which raised €759 million at Series E. London-based Verdiva Bio raised €345 million at Series A, and AI video platform Synthesia raised a combined €346 million across two rounds.
The UK, Finland, and France lead in capital raised
Geography continues to shape outcomes sharply. The UK, Finland, France, and Germany between them captured 67% of all venture capital deployed into female-founded companies in Europe, at 32%, 13%, 12%, and 10% respectively.
On national share, the picture is more revealing. Finland stands out with 55% of all domestic VC going to female-founded companies, far ahead of any other country. Czechia came next at 26%, Luxembourg at 25%, and Spain at 24%. The UK's 32% share in absolute terms reflects the depth of its venture market rather than proportional representation.
Scientific backgrounds dominate the top 50
Of the 50 largest rounds raised by female founders in 2025, 71% went to founders with scientific or engineering backgrounds. That figure reflects the weight of health, deep tech, and AI deals in the top cohort.
"Deep tech requires funding, regulatory clarity, networks, mentoring, training, shared facilities, and an ecosystem that understands results take time," said Gordana Djordjevic, founder of Arsenale BioYards in Italy, which raised €9.5 million in February. "Innovation can only scale when all these elements align and support the long path from research to real-world impact."
Romana Schirhagl, founder of Dutch quantum sensing company QTsense, which raised €6 million in February, described the moment of decision that led her to leave academia. "At some point, I had to choose between writing another research paper or building something with real impact," she said. "That growing sense of responsibility became impossible to ignore."
Founders feel the tailwind from AI
The index includes survey data from founders, investors, and startup employees. Among founders, 86% said they currently leverage AI for their businesses, up from 77% in 2024. Of those who found AI made their work easier over the past 12 months, the figures ran to 53% of early-stage founders and 63% of growth-stage founders.
The shift is affecting fundraising strategy too. Among both early and growth-stage founders, the most common response to how AI had influenced their fundraising plans was an increased ask, while a meaningful portion said it had made fundraising more urgent.
Investors, for their part, broadly expect AI to sharpen the divide between companies rather than lift all boats. The most common investor view on how AI would affect fundraising dynamics was a "clear divide between winners and laggards."
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"You can build an amazing AI product, but without real adoption, retention, and positive feedback, it will fail," said Delphine Groll, co-founder of Nabla, the Paris-based AI health assistant that raised €60.4 million in June. "Product-market fit is the hardest challenge in AI."
The 2026 Female Innovation Index was produced by Female Foundry with data from Dealroom.co. The full report includes sector breakdowns, country-level analysis, and profiles of the 50 largest rounds of the year.
