European Investment Fund Backs Sistafund with €30 Million Investment to Champion Gender Diversity in Venture Capital

European Investment Fund Backs Sistafund with €30 Million Investment to Champion Gender Diversity in Venture Capital

(IN BRIEF) The European Investment Fund (EIF) has committed €30 million to Sistafund, a venture capital initiative championing gender diversity in European startups. Targeting a total of €100 million, Sistafund invests in early-stage companies where women hold at least 30% of the founder shares. Backed by major partners like BNP Paribas and L’Oréal, Sistafund focuses on sectors including health tech, sustainability, AI, and fintech. With seven startups already supported, the fund aims to showcase the benefits of inclusive teams and redefine success in venture capital. This milestone aligns with the EIF’s mission to enhance gender equity and innovation in Europe’s startup ecosystem.

(PRESS RELEASE) PARIS, 29-Nov-2024 — /EuropaWire/ — The European Investment Fund (EIF) has announced a €30 million investment in Sistafund, a groundbreaking venture capital initiative aimed at supporting startups led by women entrepreneurs and gender-diverse teams. Sistafund, which targets a total fund size of €100 million, invests exclusively in companies where women hold at least 30% of the founder shares, addressing the persistent gender disparity in access to startup financing across Europe.

Operating under its new management company, Sunshine, Sistafund seeks to challenge societal biases and redefine venture capital through inclusivity. Backed by a robust entrepreneurial network, including the Sista NGO, co-founded by one of Sistafund’s partners, the fund focuses on key growth sectors: health tech, sustainability, frontier tech (AI and deep tech), and inclusive fintech and insurtech. Its goal is to foster diverse, high-performing teams that can lead global innovation from Europe.

Since its inception 18 months ago, Sistafund has already supported seven pioneering startups, such as The Exploration Company (spacetech), Astran (cybersecurity), and Female Invest (fintech and edtech). With contributions from prominent corporates like BNP Paribas, L’Oréal, and Française des Jeux, alongside leading European entrepreneurs, Sistafund provides portfolio companies with tailored support, mentorship, and access to a network of industry experts.

The initiative has garnered strong endorsements, including from Clara Chappaz, Secretary of State for Artificial Intelligence and Digital Affairs, who praised it as a decisive step toward addressing gender inequalities in funding. “This investment represents a meaningful response to the glaring disparities women founders face, accounting for just 2% of funds raised,” she noted during the signing ceremony with EIF and Sistafund representatives.

Tatiana Jama, Founder and Managing Partner of Sistafund, emphasized the transformative potential of the fund: “We are breaking barriers by investing in female founders and gender-balanced teams, unlocking untapped potential and setting a lasting precedent for inclusive innovation across Europe.”

Sistafund Managing Partner Isabelle Gallo reinforced this vision, highlighting diversity as a critical driver of success: “Diversity isn’t a limitation; it’s a strength. By prioritizing inclusive teams, we’re ensuring our investments pave the way for sustainable growth stories that redefine the venture capital landscape.”

EIF Chief Executive Marjut Falkstedt and EIB Vice-President Ambroise Fayolle echoed the sentiment, emphasizing that gender diversity is a cornerstone of economic transformation and sustainable success. Through this partnership, Sistafund and EIF aim to accelerate systemic change, promoting equity and innovation in Europe’s startup ecosystem.