Access to capital is perhaps the biggest challenge for entrepreneurs across all demographics, including LGBTQ+ founders. Between 2000 and 2022, only 0.5% of all funding for startups went to LGBTQ entrepreneurs.¹

We talked to leaders within the LGBTQ+ business community about how business owners can improve their chances of securing capital without sacrificing their authenticity.

Establishing an embedded network

When they’re first launching their businesses or trying to scale, LGBTQ+ founders often don’t have a broad list of contacts to lean on, said David Barbee, Head of LGBTQ+ Initiatives for JPMorganChase Commercial Banking. “Not having that embedded network is an immediate barrier they have to address and tackle,” he said.

But it’s not as simple as meeting more people.

“As they’re developing and building a network, LGBTQ+ founders are reading the room, trying to determine if they’re in a safe space,” Barbee said. “‘Am I comfortable disclosing my identity to the people I’m engaging with?’ That’s an added complexity that the broader entrepreneurial community doesn’t face in as impactful a way.”

JPMorganChase strives to break down those barriers. It does so directly—by providing capital, expertise and financial solutions to diverse and underserved business owners—and indirectly via partnerships with organizations that help LGBTQ+ founders develop networks. Those organizations include StartOut and the National LGBT Chamber of Commerce.

“Whether it’s capital or other resources—private coaching, mentoring, access to diverse-supplier opportunities and new customer acquisition opportunities—they all help founders become more embedded in the business community and more visible,” Barbee said. “It’s about being very intentional in creating that space for founders to be comfortable being their full, authentic selves as they develop relationships and as we bring more resources to the table.”

Authenticity from the onset

Fortunately, there are plenty of success stories among LGBTQ+ founders who were initially apprehensive about being open earlier in their careers but discovered the value of authenticity. One duo of founders said they made an important realization years later.

When Jess Page and Nicole Doucet first started raising capital for Open Water, which sells purified water in recyclable aluminum bottles and cans, they kept their personal lives to themselves. As the business grew, they realized a good fit requires more than just funding.

“You don’t want someone on your cap table who doesn’t respect who you are,” said Doucet, the company’s CEO. 

Being authentic from the start can help in the long run. When founders connect with potential business contacts, they talk about the causes and values that are personal and meaningful to them, said Page, who serves as chief brand officer for Open Water. “If you’re trying to be too discreet, that will come across,” she said.

‘The sauce that holds it all together’

Many founders find the funding, connections and confidence they need through accelerator programs such as the StartOut Growth Lab.

Since its founding, the Growth Lab helped 74 companies raise over $892 million in funding and create more than 4,216 new jobs, said Tarik Perkins, Chief of Programs for StartOut.

Despite receiving only half a percent of all startup dollars over roughly the past 20 years, LGBTQ+ founders have excelled when given opportunities.

“LGBTQ+-founded companies today create 36% more jobs compared to the average entrepreneur,” Perkins said. “LGBTQ+ founders have created 114% more patents compared to the average entrepreneur. And they’re 44% more likely to exit, despite having 16% less funding.”

The potential is great, he said. “The problem is getting the support. Being a founder can be a very lonely place, and having access to a community of founders who can relate is invaluable. It’s the sauce that holds it all together.”