COLORFUL CAPITAL BETRAYAL: FIRM KEEPS SECRET FUNDING FAILURE FROM LGBTQIA+ COMMUNITY
In a devastating blow to the LGBTQIA+ community, Colorful Capital, the venture fund that promised to invest in and empower the community, has been quietly shutting down its operations, sources close to the matter reveal. The firm’s attempts to raise a fund have been met with failure, and it’s unclear if it will ever recover.
A former employee, who wished to remain anonymous out of fear of retaliation, told TechCrunch that Colorful Capital has been struggling to raise its first fund since its launch in 2022. Despite making four investments, the firm failed to secure the necessary capital to sustain its operations.
"This is a betrayal," the former employee said. "Colorful Capital promised to be a beacon of hope for the LGBTQIA+ community, and now it’s abandoning them."
The fund’s co-founders, William Burckart and Megan Kashner, refused to comment on the matter, leaving the community wondering what went wrong.
The collapse of Colorful Capital comes at a time when the venture capital market is undergoing a significant pullback. According to reports, funding for diversity, equity, and inclusion-focused organizations has dried up, and the number of Black founders receiving funding has declined.
"This is just the beginning," the former employee warned. "We’re going to start seeing more stories like this as the market continues to consolidate. The stakes are too high, and only the biggest and flashiest names will be able to get funded."
Despite the setbacks, Colorful Capital’s co-founders have hinted that they will continue to work on advancing capital access for the LGBTQIA+ community, albeit in individual capacities.
"Rest assured, you will continue to see us on the front lines," the email concluded. But it’s unclear what that means for the future of the fund and the community it promised to serve.
The question on everyone’s mind: what happened to the promised venture equity for LGBTQIA+ founders?
