Crunchbase will begin tracking venture dollars allocated to LGBTQ+ founders

4 months ago 4

Crunchbase announced Thursday that it is starting to way the magnitude of task superior dollars invested successful founders who place arsenic portion of the LGBTQ+ community.

The caller information root is an summation to Crunchbase’s Diversity Spotlight, which tracks the magnitude of task superior backing raised by founders wrong marginalized communities. Similar to its different diverseness tags, LGBTQ+ founders volition person to self-identify and opt-in to wanting their accusation publically shared. Crunchbase said its volition is to assistance rise consciousness of LGBTQ+ founders looking for funding, arsenic good arsenic connection information and transparency astir investments wrong the community. The announcement coincides with the archetypal time of Pride Month.

“Having factual information helps successful advocating for argumentation changes, backing initiatives and assets allocation to enactment LGBTQ+ entrepreneurs,” said Ryan Husk, Crunchbase’s manager of concern development. “It enables america to marque evidence-based arguments for greater equity and entree wrong the startup ecosystem.”

It was estimated by Backstage Capital that little than 1% of each VC dollars are raised by companies with founders openly wrong the LGBTQ+ community. Members of the assemblage often look hurdles portion fundraising, whether it’s dealing with openly transphobic investors oregon code-switching to fell one’s sexuality successful trepidation of homophobia.

“I’ve heard founders accidental they delete immoderate notation of same-sex partners, advocacy enactment oregon engagement successful thing LGBTQ+ portion raising superior arsenic they fearfulness investors volition spot it during owed diligence,” said Chasing Rainbows General Partner Patrick Driscoll.

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