Its no secret that European tech has a gender equity problem. Men dominate the leadership of most companies in the sector. Women founders struggle to raise VC money, and theres a stark pay gap between male and female workers. This gender imbalance is especially glaring in the STEM-dominated world of deep tech.Women lead just 22% of European deep tech companies, according to a new report from the EU-funded GENDEX project, released today. Securing funding remains a challenge, with women-led firms taking six months longer to sign their first term sheet. Over the past decade, women-led companies raised 1.8 times less capital than those led by men. Even those that get funded often face less favourable terms.European deep tech gender inequity limits diversity of thought and stifles innovation. Its also pouring hundreds of billions of euros in potential revenue down the drain.Data from the GENDEX report shows that women-led deep tech companies have generated over 11% of the total value raised at non-IPO exits in the past decade a disproportionately low figure. However, these firms account for just 0.6% of such deals, highlighting the outsized value created when women take the lead.Group BundlesAchieving greater representation of women-led companies at the exit stage both IPO and non-IPO over the past decade would have unlocked an estimated 198.8bn in additional value, GENDEX found.This data proves we need structural change, said Tanya Suarez, the chair at GENDEX, as well as the CEO of consultancy firm BlueSpecs and founder of tech accelerator IoT Tribe. Not only is it needed to fairly represent women, but evidence shows a gender-balanced ecosystem delivers the best results.Restricting European deep tech talentWhile women make up 42% of STEM graduates in Europe, their representation drops sharply in the workforce. The GENDEX report finds that women account for just 24% of patent applicants, highlighting a talent drain that limits deep techs potential.Tapping into Europes diverse talent pool in the tech and investment sectors in the broadest and most effective way possible is vital if we are to capitalise fully on our many strengths in innovation, said Stphane Ouaki, head of department at the European Innovation Council, which funded the report.The deep tech gender imbalance reflects broader societal gender issues. There is no quick fix addressing it requires systemic change across education, investment, and workplace culture.However, GENDEX makes four key recommendations to remedy the problem. First, investors should demand that companies report on gender diversity before deploying capital. Second, more funding should be allocated to women-led teams, which have been shown to deliver better outcomes. Third, better legal and funding support is needed for women to secure IP rights. Finally, government co-investment should require gender-balanced portfolios to ensure accountability in public funding. This years TNW Conference features a Women in Tech ticket. The pass provides 50% off access to the event, which takes place on June 19-20 in Amsterdam. Story by Sin Geschwindt Sin is a climate and energy reporter at TNW. From nuclear fusion to escooters, he covers the length and breadth of Europe's clean tech ecos (show all) Sin is a climate and energy reporter at TNW. From nuclear fusion to escooters, he covers the length and breadth of Europe's clean tech ecosystem. He's happiest sourcing a scoop, investigating the impact of emerging technologies, and even putting them to the test. Sin has five years journalism experience and holds a dual degree in media and environmental science from the University of Cape Town, South Africa. Get the TNW newsletterGet the most important tech news in your inbox each week.Also tagged with