The Landscape of Female Founders in the German FinTech Sector

In the vibrant world of German FinTech, only a select few have achieved the coveted unicorn status, with N26, Mambu, Wefox, and Deposit Solutions leading the charge. A special shout-out goes to Julia, who not only helmed her company to this remarkable valuation but also stands out as the sole woman among her male counterparts. This achievement is significant, especially in a landscape where female representation remains alarmingly low.

Facing the FinTech Reality

According to Barkow Consulting’s Fintech Money Map, 105 FinTech companies were founded in Germany in 2019. However, the gender disparity is stark: only 17 of these startups, or roughly one in six, were co-founded by women. The situation becomes even more disheartening when we consider all-female founding teams, which account for a mere four startups. This translates to a staggering 88 out of 105 FinTechs being entirely male-led, akin to 756 gentlemen’s clubs in a sector boasting over 900 companies.

The Gender Gap in Founding Teams

The lack of female founders is not just a statistical anomaly; it reflects deeper systemic issues within the industry. The media often highlights financing rounds and unicorns, but the reality is that venture capital firms, which play a pivotal role in shaping market dynamics, are predominantly male-dominated. This imbalance extends to the investor landscape, where female investors are scarce, further limiting opportunities for female founders.

The Correlation Between Founders and Investors

Hypothesis 2 posits a correlation between the number of female founders and the presence of female investment partners. For instance, DvH Ventures, recognized as the most active FinTech investor in Germany in 2019, is led entirely by men. This lack of diversity in investment teams perpetuates the cycle of underrepresentation among female founders.

The Case for Diverse Teams

Research has consistently shown that companies with diverse teams are more likely to outperform their peers in profitability. This principle should extend to investment teams as well. Yet, the industry has yet to fully leverage this success lever. Female founders often face skepticism during fundraising, with investors questioning their potential for success, while male founders receive more encouraging inquiries about their prospects.

The Confidence Gap

Thesis 3 suggests that female founders may underestimate their business potential compared to their male counterparts. This self-assessment disparity can hinder their ability to secure funding. Interestingly, female investors tend to focus on early-stage investments, indicating a potential area for growth in supporting female-led startups.

Celebrating Female Founders on International Women’s Day

International Women’s Day serves as a reminder to amplify the voices of female FinTech founders. The Global Women in VC Directory lists over 3,000 women making investment decisions across various sectors, including many from Germany. This growing network is crucial for fostering a more inclusive investment landscape.

Initiatives for Change

The UK has emerged as a startup hub, with organizations like Diversity VC working to connect venture capital professionals with diverse founding teams. Their efforts include reviewing policies and practices of venture capital firms to promote diversity. Similarly, the Business Angel Netzwerk Deutschland has declared 2021 the “Year of Women Business Angels,” aiming to increase the proportion of female business angels in Germany to 25% by 2025.

Strengthening Support for Women Founders

The Young Digital Economy Advisory Council of the German Federal Ministry of Economics and Technology has called for unconscious bias training for educators and the establishment of workshops for female coders and founders. These initiatives aim to create a more equitable environment for women in the tech sector.

The Role of Female Founders as Role Models

Female founders are encouraged to seek diversity within their teams and shareholder lists, becoming visible role models in the industry. The call to “stop speaking on all-male panels” is a powerful reminder for women to advocate for their presence in discussions that shape the future of FinTech.

Notable Women Making Their Mark

Several women are already making significant contributions to the FinTech landscape, including:

• Caroline Bell (Finmarie)
• Leonora Beyhl (Landopay)
• Anne Connelly (herMoney.co.uk)
• Alexa Cotiaux (Uplyvt)
• Martina Gstöttmayr (Uplyvt)
• Jennifer Dussileck (finway)

These women, among many others, are paving the way for future generations of female founders and investors in the FinTech space.

Top Female FinTech Investors

Notable female investors include:

• Charlotte Bruce (Cherry Ventures)
• Dr. Tanja Emmerling (High-Tech Gründerfonds)
• Ulrike Hinrichs (Federal Association of German Equity Investment Companies)
• Fabiola Hochkirchen (Auxxo)

These women are instrumental in shaping the investment landscape and supporting the next wave of female-led startups.

As the FinTech sector continues to evolve, the call for greater diversity and inclusion remains paramount. By amplifying the voices of women and fostering supportive networks, we can create a more equitable environment for all founders.