There is no data To show how little venture funding is available to trans founders.
According to a report from Backstage Capital, only 1% of venture funding went to LGBTQ+ founders. (According to a recent Gallup poll, 7.1% of Americans identify as LGBT+.)
That’s surprisingly low funding, though it’s not surprising given how easily homophobia and transphobia can creep in, and investors should avoid funding those they don’t support or support.
“Investors are so overwhelmed by the complexity of this patient population that we can’t even offer our product.” Kate Anthony, Founder, Euphoria
Kate Anthony, founder of Euphoria, an app that connects gender-affirming individuals to healthcare resources, says her fundraising journey has been grueling and “really hard.” Investors didn’t understand the size of the trans population or why her company needed it. She also faced a lot of prejudice.
“There’s a 50-50 chance that when I talk to someone, they don’t want to see someone like me,” she said.
“It was a huge trial-and-error game,” she said, generating 272 investors, 12 of whom were at Euphoria’s pre-seed cap table. Although hesitant given the economic climate, she wants to raise an official race, not to mention the discrimination she might face as a trans founder. “It’s disappointing and frustrating.”
TechCrunch conducted an investigation into the current market sentiment — what we like to call a “vibe check” — to see what it’s like for trans founders seeking venture capital funding, especially when their products target the trans community. Many say investors don’t trust their product’s marketability, while others describe the emotional process of putting themselves out there in every meeting with people who might or might support their existence.
