A New Era for LGBTQ+ Founders: Identity.vc Revolutionizes Venture Capital
In a groundbreaking move, Til Klein and Jochen Beutgen, two seasoned entrepreneurs, launched Identity.vc in 2023. This Berlin-based venture firm is dedicated to investing in early-stage companies with at least one founder or executive who identifies as a member of the LGBTQ+ community. With a focus on fostering diversity and inclusion, Identity.vc aims to bridge the gap for underrepresented founders in the European startup ecosystem.
A Gap in the Market
Klein and Beutgen’s inspiration for launching Identity.vc came from their observations about the lack of investment opportunities for LGBTQ+ founders in Europe. Despite the growing demand for diverse teams and the proven performance benefits of inclusive workplaces, there was a noticeable absence of venture firms catering specifically to this community.
"We realized that we needed to create something ourselves," Klein explained in an interview with TechCrunch. "There wasn’t a firm like Gaingels [a U.S.-based syndicate of angel investors backing LGBTQ+ founders] in Europe, and we wanted to change that."
A Traditional Fund with a Twist
Identity.vc’s approach is distinct from traditional venture firms. By raising €50 million for its debut fund, the pair aimed to make a statement about their commitment to the opportunity. This larger-than-usual debut fund will not only enable them to invest in more companies but also allow them to build a robust community of LGBTQ+ founders and investors.
"We wanted to collect a high management fee, so we would have enough capital to start building the European community for LGBTQ+ founders and investors," Klein emphasized. "In the U.S., there is a real LGBTQ+ investor community – that’s not the case in Europe."
A Focus on Community Building
To establish a strong foundation for their fund, Identity.vc has already launched several initiatives aimed at fostering connections within the European startup ecosystem. These include:
- Slack Channel: With over 300 members, this platform serves as a hub for LGBTQ+ founders and investors to connect, share knowledge, and collaborate.
- Regional Events: Held in Madrid, Amsterdam, and Paris, these gatherings provide opportunities for networking, idea-sharing, and relationship-building.
Performance Benefits
By focusing on diversity-driven performance and backing the LGBTQ+ community, Identity.vc believes it can outperform traditional venture firms. The firm’s unique approach will grant access to startups and interesting deals that may have otherwise gone unnoticed.
"There are multiple reasons why we think it’s needed," Klein said about Identity.vc’s existence. "We believe strongly we can outperform because of the fact that diversity-driven performance and backing the LGBTQ+ community give us a unique access to startups and access to interesting deals."
A New Era for Venture Capital
The launch of Identity.vc marks a significant milestone in the evolution of venture capital. As the startup ecosystem continues to grow, it’s essential to recognize the value of diversity and inclusion. By creating opportunities for underrepresented founders, firms like Identity.vc are paving the way for a more inclusive and innovative industry.
Related Topics
- Diversity and Inclusion: The growing importance of diverse teams in startups and venture capital.
- European Startup Ecosystem: Overview of the European startup ecosystem and its growth prospects.
- Venture Capital Trends: Analysis of current trends and developments in the venture capital space.