VC aims to strengthen Europe’s LGBTQ+ startup ecosystem with community and capital

The lack of dedicated venture capital serving Europe’s burgeoning LGBTQ+ startup community presented an opportunity for Til Klein and Jochen Beutgen. In 2023, the pair launched Identity.VC, a Berlin-based firm writing early-stage investment checks focused on startups with at least one LGBTQ+ founder or executive.

Already Identity.VC has invested in four companies across sectors like sustainability and legal tech. The firm is currently raising a €50 million debut fund, having secured €15 million to date.

Founders Klein and Beutgen saw a need for the resources and relationships available through a community of LGBTQ+ investors and entrepreneurs. However, most LGBTQ+ founders keep their identity private from backers, fearing potential disadvantage. Identity.VC aims to change this dynamic through a trusted environment.

Investor appetite also drives the strategy. A Morgan Stanley survey found 45% of US investors seek ways to back diverse founders like those in the LGBTQ+ space. Identity.VC experienced supportive feedback and smooth fundraising so far in Europe, where diversity initiatives enjoy broader acceptance versus other regions.

Beyond direct investments, Identity.VC utilizes community events and online networks to foster connection among Europe’s dispersed LGBTQ+ startup ecosystem. The firm’s Slack channel counts 300 members. By bringing local entrepreneurs and angels together, Identity.VC creates opportunities beyond its own deals.

Identity.VC took a larger initial fund size intentionally to make a forceful statement. And with ample resources to develop community programming, the firm is laying strong foundations for the future of European LGBTQ+ entrepreneurship. Identity.VC is both investing capital and cultivating an inclusive community so greatly needed.