identity.vc Raises €15 Million to Back LGBTQ+ Entrepreneurs

identity.vc Raises €15 Million to Back LGBTQ+ Entrepreneurs

By
Elena Rossi
2 min read

Berlin-Based VC Fund identity.vc Raises €15M to Back LGBTQ+ Entrepreneurs in Europe

Berlin-based venture capital fund identity.vc has successfully secured €15 million for its inaugural fund, with the goal of supporting LGBTQ+ entrepreneurs in Europe. The fund, which aims to reach €50 million, plans to invest between €250,000 and €1.5 million in 25 pre-seed to Series A companies, reserving 50% for follow-on investments. Research by identity.vc indicates that 15% of European startups have an LGBTQ+ founder, while a report by Proud Ventures revealed that 35% of founders believe their LGBTQ+ identity impacts their ability to raise capital. By directly addressing this issue, identity.vc aims to cultivate a more inclusive tech ecosystem where founders can openly express their identity. The fund has already made four investments, including Berlin-based AI solution Frontnow and Omni, a vegan dog food company.

Key Takeaways

  • Identity.vc has raised €15 million to support LGBTQ+ entrepreneurs as part of its €50 million target fund.
  • The fund plans to invest in 25 pre-seed to Series A companies, with 50% earmarked for follow-on investments.
  • Studies indicate that 35% of LGBTQ+ founders perceive their identity as a barrier to raising capital.
  • Identity.vc envisions eradicating the topicality of LGBTQ+ focus within the next decade.
  • The fund primarily focuses on European startups within the AI, sustainability, demographic change, and security sectors.

Analysis

The successful €15 million fundraising by Berlin-based VC identity.vc, specifically dedicated to supporting LGBTQ+ entrepreneurs in Europe, addresses a prevalent market gap where a significant percentage of LGBTQ+ founders believe their identity impacts their ability to secure funding. This development may stimulate the emergence of similar funds, fostering a more inclusive tech landscape. Potential outcomes include heightened visibility and opportunities for underrepresented founders, along with potential growth in sectors such as AI, sustainability, and security. Countries with progressive LGBTQ+ policies, such as Sweden and the Netherlands, may witness an upsurge in startup activity. However, conservative regions may pose resistance, influencing fund performance. In the long run, aspired by identity.vc, the emphasis on LGBTQ+ entrepreneurs could potentially become obsolete, with founders' identities universally accepted as non-topical.

Did You Know?

  • VC Fund: A venture capital (VC) fund is a collective investment pool that nurtures early-stage companies, typically in the technology sector, with the objective of generating substantial returns for investors. VC funds are commonly managed by an experienced team, providing funding, mentorship, and resources to assist startups in their growth and success.
  • LGBTQ+ Entrepreneurs: These individuals identify as lesbian, gay, bisexual, transgender, queer, or another non-heteronormative sexual orientation or gender identity. Historically, this group has encountered obstacles in accessing capital, guidance, and resources, hindering their ability to initiate and expand prosperous businesses.
  • Pre-seed to Series A: These terms signify different stages of startup funding. Pre-seed funding generally refers to the earliest financing stage, often facilitated by angel investors or incubators, aimed at aiding entrepreneurs in developing their product or business plan. Series A funding represents the first institutional funding round, commonly provided by VC firms, to facilitate startups in scaling their operations and achieving profitability.

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