Colorful Capital’s Post

TIIP - The Investment Integration Project's CEO William Burckart, who also co-founded Colorful Capital and is a professor at Columbia University, is featured in a new piece today in Barron's PENTA on "Finding LGBTQ-Focused Investments Can Be Difficult. Here’s Where to Begin." The article covers a lot of ground and, in particular, reinforces the economic case of investing in #LGBTQIA+ led ventures. From the article: "There are economic reasons to consider LGBTQ investments: Multiple studies show correlations between diversity among firm leadership and company performance as measured by internal rates of return, risk management factors, and firm valuations. “From a purely financial benefits perspective, there’s real value in beginning to embrace and integrate that kind of diverse thinking,” Burckart says." The TIIP team sends a big thank you to Rob Csernyik for a great piece. An additional thank you to Abby Schultz for continuing to reinforce for readers of Barron's PENTA the need for investors to take a system-level investment approach to managing systemic risks like LGBTQIA+ inequity. #impactinvesting #SystemLevelInvesting #SystemicRisk Copying in the TIIP brain trust: Noel Pacarro Brown, CIMA®, CPWA®, Kieron Boyle, Robert Eccles, Kirsty Jenkinson, Yuko Koshiba, Jon Lukomnik, Renaye Manley, MBA, Meredith Miller, Kilian Moote, Eric Stephenson, CAIA, CFP®, Monique Aiken, Jessica Ziegler, Melissa Eng, Billy Gridley, and Laura Wells, Caroline Flammer, Chandana Yelkur, Sustainable Investing Research Initiative (SIRI), Columbia | SIPA Read the Barron's article here: https://lnkd.in/eQ-cTSVC

We're excited to announce that we've completed the first close of our €50M fund, raising €15M to support LGBTQ+ entrepreneurs across Europe and beyond. This is the first fund of its kind in European tech, and we’re dedicated to backing founders who often face unique challenges in securing capital. We’re looking to invest between €250k and €1.5M in around 25 startups, from pre-seed to Series A stages. Half of the fund is reserved for follow-on investments to support these companies as they grow. The need for this fund is clear: 35% of LGBTQ+ founders feel their identity affects their ability to raise capital, and 75% don’t disclose their LGBTQ+ status to investors. By creating a supportive and inclusive environment, we aim to change this narrative and build stronger, more open relationships between founders and investors. We’ve already invested in companies like Frontnow, which optimizes pre-sales in e-commerce with AI; Omni, offering vegan dog food and cultivated cat food; and PaxtonAI, an AI legal assistant. Our leadership team includes Til Klein 🏳️🌈 🇪🇺 from Zurich, an ex-BCG partner and FinTech founder; Jochen Beutgen from Berlin, a veteran venture capital investor with 20+ years of experience; and Mari Luukkainen from Helsinki, a former growth operator and pre-seed investor. We invite you to join us in transforming the venture capital landscape and backing LGBTQ+ entrepreneurs! Learn more at www.identity.vc or feel free to reach out to us directly! https://lnkd.in/dy8rfbDX

The next Unicorns should be LGBTQ-owned — and I’m not talking about the horses. 🦄 Queer founders produce 36 percent more jobs and 114 percent more patents than the industry average, and one report released by Morgan Stanley last year found that 45 percent of all U.S. investors want opportunities to invest specifically in LGBTQ diversity and inclusion. This number spikes to 76 percent for investors who have at least one LGBTQ person in the household. But in venture capital, the investment buzz is nowhere near as potent: Less than 0.5 percent of overall funding goes to queer founders. In our recent political climate, outness can be seen as a liability to investors wanting to de-risk as much as possible; as such, many founders admit going back into the closet when it comes time to raise funds, and that’s, well, shitty. In my newest finance column for Out magazine, I spoke to the founders of various LGBTQ VC organizations to better understand our progress gaps. Discrimination and the antiquated perception that queer people are weaker are sadly still factors. But so is a lack of awareness among queer people themselves that many funding arms, incubators, accelerators and LGBTQ-friendly organizations already exist. A unicorn is a long-standing moniker for a company that achieves a valuation of a billion dollars or more. Often, those companies reach the stratosphere not only because of a good idea, but also because the founder was able to get into the right rooms with the right people at the right time. More queer unicorns would cultivate both economic parity and a better world, and there’s a whole community of investors and mentors who want to help starry-eyed founders make it happen. Thank you to my sources for your time - Brian Richardson Megan Kashner Patrick Driscoll Ben Stokes Tristan Schukraft - and their organizations: Chasing Rainbows Colorful Capital StartOut #lgbtq #pridemonth #pridemonth2024 #lgbt #venturecapital https://lnkd.in/gZz6txV9

The Case for Her's newest investee, Unconventional Ventures hits its second close of its €30 million fund that will drive more investments to underrepresented funders and women’s health! 🤩🙌 Unconventional Ventures invests in startups in the pre-seed and seed stage led by diverse founders identifying as women, people of color, immigrants and/or LGBTQ+, building scalable impact tech companies in the Nordics and beyond. Among their current investment portfolio, UV claims 75% are founded by all-female teams, and over 25% have a founder or co-founder from an ethnic minority. Moreover, 67% of the portfolio focuses on combating climate change, while 20% addresses female health-related challenges. 🚀💥 Some of their portfolio companies are Meela & LEIA Health We are thrilled to see more venture capital firms taking charge in amplifying their focus on women’s health, especially on underrepresented funders!  👏😍🎉 Read the full press release here: https://lnkd.in/db6hbdJY The Inner Foundation Atomico EIFO Investinor Meela LEIA Health Nora Bavey Thea Messel #InvestinHer #FundsForHer #WomensHealthMatters #FemaleVC #VentureCapital

We couldn’t be more proud to have Ben Stokes and Patrick Driscoll as part of the #VCI family. The co-GPs of Chasing Rainbows – an early-stage venture fund focused on investing in LGBTQ+ founded companies – are alums of 2023 VCI Fellowship Cohort III and are filling a critical, yet underserved, need in the investment industry. Their unique experiences and perspectives, and the work they are doing through Chasing Rainbows, are vital to de-homogenizing the venture space and making the alternative investment industry a more colorful, representative, and profitable place. Learn more about their important work here - https://lnkd.in/dGS_4VFc #diversityandinclusion #impactinvesting #esg #fundmanagers #venturecapital #DiversityInVC #ImpactinAction #emergingmanagers #alternateinvestments #vc #pe #dei

Reflecting on International Women’s Day, it’s clear: the #venturecapital world has room to grow. In 2023, #femalefounders received only 2.8% of VC funds. Female-led startups represent not just equity, but also untapped potential for high returns. With only 8.6% of venture capitalists being women, this is more than a missed chance for fostering equality; it’s a missed investment opportunity! At The Impact Seat Foundation, we see the value in female-led startups. It’s time for the venture capital industry to look beyond #gender and recognize the undeniable business case for funding these innovative ventures. Read here: https://lnkd.in/dxc4NPrk #investinwomen #womeninleadership #womenlead #DEI #venture

🏋🏼♂️ My 6 fave hairy feminists in startup world 💸 Female-only founder teams receive around 2% of venture capital. Which is dumb, because they have the highest returns on dollars invested. 👀 As we know, ‘If you can’t see it, you can’t be it.’ So here are some role models for all you wannabe male allies. 1️⃣ Carl Jones managing partner at deep tech fund WNT Ventures - There are more women (7) than men (2) at WNT Ventures including managing partner, Maria Jose (MJ) Alvarez - In WNT’s third fund, 60% of portfolio companies have women in the founder team. - Gets annoyed when businesses make men the ‘default’ then ‘pink it and shrink it’ to sell their products for women. Eg in pharma, just giving women a bit less drugs than a dude. 2️⃣ Kelly Kimball at F5 Collective - Says ‘I want to see gender equality in venture capital, but not in politics where women should be dominant.’ - Partner at venture fund F5 Collective with fellow female partners in US and Aus which invests solely in APAC women-led ventures. - Is part of a group which got a bill through Californian Assembly to require VC funds to report on the diversity of the founders they’ve invested in. Unbelievable 💥 3️⃣ Robett Hollis founder, ex-pro snowboarder - Shines a light on the woeful statistics of the low number of women receiving venture capital and the high number reporting inappropriate behaviour from people in positions of power in the same industry. - Robett has his own hilarious and terrifying style of calling out bad behaviour. I don’t agree with everything he says, but I admire his adherence to what is right and fair. 4️⃣ Daniel Epstein CEO, Unreasonable Group - When Daniel shares stories of the 370 founders his group has supported and connected to $14bn of capital, his presentation is full of WOMEN…here ya go… - Carrie Cham at Avant Meat in Hong Kong, who makes meat and fish proteins without killing animals. -Namita Banka at Banka Bio in Delhi who took her business from her house to a publicly-listed entity which captures, cleans and reuses wastewater. 5️⃣ Tom Higley at X Genesis - Writes about the need to have more women in leadership. - Says ‘Solving the world’s wicked problems requires participation from the broadest possible cross-section of people, including women and BIPOC. We value the expertise, perspective, and voices of these groups and from now on, will not move forward without them.’ 💥6️⃣💥 Mathew Tomlinson, my husband, the Princess of Parity - Co-publisher SheEO Magazine, featuring women entrepreneurs working on the world’s to-do list. - Uses his privilege to call out other guys when they say things like ‘I’m all for equality, but women need to step up.’ Mat’s response is ‘So you want equality as long as it doesn’t affect the inequality that you benefit from, at the expense of women.’ 👉🏼 If you want to support a group you aren’t a member of, you can. And you should. 🙌 Shot, male allies! Tag some more of these epic people below!

The difference in investment reported between male and female-owned venture capital funds exposes a glaring gender imbalance in the VC world. Beyond being unfair to female-led funds, this disparity has wider implications, stifling diversity in startup teams and hindering overall financial performance. The identified trend of "gender washing" underscores the need for genuine efforts in addressing gender imbalances at all levels, not just in junior roles. The findings here reinforce the urgency for collaborative industry action to dismantle systemic barriers, promoting inclusivity and fostering a more innovative and equitable future.

🌟 Honored & Humbled 🌟 I'm deeply honored to be recognized among the "𝟮𝟱 𝗙𝗲𝗺𝗮𝗹𝗲 𝗔𝗻𝗴𝗲𝗹 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗳𝗿𝗼𝗺 𝗖𝗘𝗘 𝗥𝗲𝗰𝗼𝗺𝗺𝗲𝗻𝗱𝗲𝗱 𝗯𝘆 𝗼𝘂𝗿 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆" by 𝗧𝗵𝗲 𝗥𝗲𝗰𝘂𝗿𝘀𝗶𝘃𝗲. Thank you Elena Ghiniță and The Recursive for giving visibility to the amazing women in this space and for shedding light on the gender gap! Thank you to the whole community for this recognition! This is not just a personal milestone but a testament to the collective efforts and progress we've made in the investment ecosystem over the last 20 years. Being among the longest-serving members in this field, I've witnessed firsthand the evolution and the ongoing challenges we face toward gender balance in investing. Driving change in the ecosystem has been a journey of passion, resilience, and unyielding commitment to a better and more inclusive future. As the Vice President of the EBAN - European Business Angel Network and the initiator of the 𝗘𝗕𝗔𝗡 𝗠𝗮𝗻𝗶𝗳𝗲𝘀𝘁𝗼 𝗳𝗼𝗿 𝗚𝗲𝗻𝗱𝗲𝗿 𝗕𝗮𝗹𝗮𝗻𝗰𝗲𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴, our goal is bold but clear: to triple the number of women angel investors by 2030. I am thrilled to invite you to watch my 𝗧𝗘𝗗 𝗧𝗮𝗹𝗸, "𝗜𝗻𝘃𝗲𝘀𝘁 𝗟𝗶𝗸𝗲 𝗮 𝗚𝗶𝗿𝗹," where I present the existing norms and biases in early-stage investing. At the same time, this talk is my invitation to you to envision a world where investment equality isn't an aspiration but a reality. 😁 Admittedly, seeing a still from my talk as the featured image of the article was pretty cool – a visual reminder of our power to inspire change. 🎉 To the incredible women featured alongside me, your resilience, brilliance, and impact inspire me every day. Together, we are not "just" investors; we are catalysts for change, champions for equity, and believers in a future where everyone has a seat at the table! 🎉 Here's to empowerment, breaking new ground, and leading with heart and determination! I'm curious to hear from you - have you experienced (unconscious) gender biases in your professional journey? How do you envision overcoming these challenges? #futurism #genderbalance #venturecapital ------------- Proudly presenting day 17/70 of my #empowertoimpact campaign https://lnkd.in/dP-SjT-p

California passed a law mandating VC firms to publicize diversity information in investment portfolios.    “This bill resonates deeply with my commitment to advance equity and provide for greater economic empowerment of historically underrepresented communities,” Governor Gavin Newsom wrote in his letter signing the bill.    Last year, California passed the law to better understand diversity in the venture capital landscape. Once the law goes into effect, venture capital firms operating in the state must report, for example; the race of the people they back, as well as their disability status and whether they’re a member of the LGBTQ+ community. The bill also requires VC firms to collect and release their diversity data to the public. It notes however, that disclosing information is voluntary for founding teams and that they won’t be penalized for not answering. Those failing to comply with the new law may face a penalty as decided by the courts. As a global provider of diversity data, Denominator always welcomes more data transparency. Discover more about the legislation's potential and its implications for the future of inclusive investments in our latest blogpost.    #DiversityData #VentureCapital #InclusiveInvestments