European Tech Industry needs to wake up to diversity & inclusion

The European Tech Industry needs a wake up to diversity & inclusion said Atomico Partner Tom Wehmeier when presenting the annual State of European Tech report at Slush in Helsinki on November 21, 2019. The report, published by Slush and Orrick from Atomico, is now in its fifth year and celebrated $35 billion investment into European Tech companies.

“In 2015, 10 billion dollars of investment into the region’s tech companies felt like a huge milestone. This year we’re projecting 35 billion. In that first report, we pointed to a lack of late-stage funding,” said Mr Wehmeier , “In 2019 alone, 40 different European tech companies raised rounds of 100 million dollars or more. Back then, there were just 22 venture-backed tech companies with billion-dollar valuations or higher. Today, there are 99.”

Helsinki, we still have a problem

“Last year’s report highlighted that the entire European tech industry needed a wake up call when it came to diversity and inclusion. Sadly, there’s been no progress on the headline figures. This year, 92% of funding still went to founding teams that are all men. Last year’s numbers were shocking. This year’s numbers are no different.

There are, however, some early signs that things may start to change. This year’s survey shows that awareness is increasing. People are feeling better informed and more empowered to take positive action to hire more diverse talent or simply to make diversity a priority in their company. Some VCs are also starting to make changes to how they source new investment opportunities.

But we also found that the burden is falling on women and people from underrepresented backgrounds to lead the charge. Our survey showed for instance that women VCs are disproportionately more likely to:

• attend events with participation from more diverse founders
• focus on sectors where there is greater diversity
• run open office hours or organise dedicated events to reach new groups

This approach – which can be effective – has to be shared more equally if we are to accelerate change.

One way to help push things forward faster is to be genuine allies to the more than 100 initiatives that are striving for progress on diversity in European tech. Like Inklusiiv here in Finland, set up by former Slusher Katja Toropainen. She’s a huge inspiration. Since launching just earlier this year, Inklusiiv has already had a huge impact and has put the topic of diversity, equity and inclusion in the workplace on the national agenda.

So I’m having to repeat what I said last year, diversity and inclusion needs to be a European tech priority. Not just for some, but for all. We won’t realise our full potential if we continue to let talent and value evaporate away from our tech industry because of diversity inertia.”

Click here to download a copy of the State of European Tech 2019 report.