Tuesday, July 19, 2016

Mora than one in three LGBT entrepreneurs are not out to potential investors

Startups founded by LGBT entrepreneurs are at risk for discrimination, affecting where they locate their businesses, their ability to raise capital and how they build trust with investors.

A new study published by the Chicago Business School, and produced in collaboration with StartOut, has found that more than one in three LGBT entrepreneurs (37%) who secured or are seeking funding are not out to potential investors.

The study also reveals that lesbian entrepreneurs have a significantly tougher time in attracting investment than gay men.

Other key findings included:

  • From 2005 to 2014 more than one million jobs created by LGBT entrepreneurs left discriminatory states in favor of inclusive states. Of those, 78% moved to California, New York and Illinois.
  • 84% of the LGBT entrepreneurs questioned chose to operate their businesses in states that had scored a 100% positive ranking on Human Rights Campaign’s Municipal Equality Index.
  • Lesbian entrepreneurs face bigger funding challenges: 12% of companies owned by GBT men have revenues of more than $5 million compared to 3% of LBT women. Meanwhile, 70% of female LBT founders raised less than $750,000 in funding compared to 47% of male GBT founders who raised more than $2 million.

Economic equality is a critical step along the continuum of progress for LGBT people.

Read the study here

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