The Exclusivist Club: How One Venture Firm is Systematically Profiting Off the Struggles of LGBTQ+ Founders
Til Klein and Jochen Beutgen, the founders of Identity.vc, are on a mission to profit off the struggles of LGBTQ+ founders by offering them a sense of security and inclusion in the venture capital world. In an industry notorious for its homophobia and transphobia, Klein and Beutgen have launched a firm that exclusively invests in early-stage companies with at least one LGBTQ+ founder or executive.
A Cash Cow in the Making
Identity.vc is currently raising €50 million for its debut fund and has already secured €15 million. With check sizes ranging from €250,000 to €1.5 million, the firm is making a killing off the backs of startups. And it’s not just about the money – Identity.vc is also building a community of LGBTQ+ founders and investors, with a Slack channel boasting 300 members.
Diversity is a Myth
Despite claims of a "sector-agnostic" approach, Identity.vc’s focus on LGBTQ+ founders raises questions about the firm’s ability to truly diversify its portfolio. After all, isn’t the point of venture capital to back the best ideas, regardless of who’s behind them? Klein’s assertion that "diverse teams outperform non-diverse teams" is nothing more than a clever marketing ploy to attract LPs and startups alike.
The Real Problem: A Systematic Lack of Inclusion
But the real problem is that identity-based venture capital firms like Identity.vc are merely a Band-Aid solution to a much larger issue. The systemic lack of inclusion and homophobia in the startup world will never be truly addressed by a firm that preys on the struggles of marginalized founders. Instead, it’s a testament to the industry’s inability to recognize and confront its own biases.
Conclusion
Identity.vc’s debut fund may be a success, but its true impact will be measured by its ability to create meaningful change in the startup world. For now, it remains a symbol of the industry’s obsession with exclusivity and profit, rather than a true commitment to diversity and inclusion.
