No data available to show how little venture funding goes to trans founders.
All that exists is a report from Backstage Capital that says 1% of all venture capital funds went to founders who openly identified as LGBTQ+. (According to recent Gallup poll7.1% of Americans identify as LGBT+.)
This is shockingly low funding, though not surprising when you consider how homophobia and transphobia can easily slip in and prevent investors from giving money to those they don’t support or understand.
“Investors will be so distracted by the complexities of this patient population that we won’t even be able to introduce our product.” Keith Anthony, Founder, Euphoria
App founder Keith Anthony Euphoriathat connects individuals with gender-affirming health resources, said her fundraising journey was scary and “really hard”. Investors didn’t understand how big the trans population was or why her company was needed. He also faced a lot of bias.
“There’s a 50-50 chance when I talk to someone they don’t want to see someone like me,” he said.
“It was a huge game of trial and error,” he said, adding that he had 272 investors and got 12 on Euphoria’s initial chart. He wants to raise an official primary, though he’s hesitant given the economic climate, not to mention the bias he’ll likely continue to face as a trans founder. “It’s just depressing and demoralizing.”
TechCrunch conducted an investigation into the current market sentiment, what we like to call “vibe check— to see what it’s like for trans founders seeking venture capital, especially when their products target the trans community. Many say investors often lack confidence in the market potential of their products, while others describe an emotional process of going out with each meeting with people who may or may not support their existence.