The Insidious Push to Profit from LGBTQ+ Suffering
In the twisted world of venture capital, some people are trying to make a killing by exploiting the struggles of the LGBTQ+ community. Meet Til Klein and Jochen Beutgen, the founders of Identity.vc, a venture firm that claims to be backing LGBTQ+ founders, but in reality, is just a thinly veiled attempt to profit from the community’s trauma.
Their "innovative" idea is to invest in early-stage companies with at least one founder or executive who identifies as LGBTQ+, using the tired trope that diversity leads to better performance. But let’s be real, this is just a cynical attempt to piggyback on the success of other firms that have successfully targeted underserved communities.
The firm has raised €15 million of its €50 million debut fund, and has already backed four companies, including eco.mio, a software plugin that helps companies manage their environmental impact (how original). But instead of using this fund to truly make a positive impact, they’re more concerned with collecting a high management fee to fund their own community-building initiatives.
Identity.vc’s founders are spinning a narrative that they’re working to create a sense of community and inclusivity for LGBTQ+ founders and investors. But let’s not forget, they’re also reaping huge financial rewards from their "unique" approach. They’re capitalizing on the very real struggles and pain of the LGBTQ+ community, all while claiming to be some sort of heroes.
And what’s most egregious is that they’re framing their firm as a response to a lack of diversity in the startup world, when in reality, this is just a shallow attempt to jump on the bandwagon of a popular trend. It’s a lazy, half-hearted attempt to seem progressive and innovative, while actually perpetuating the very same systemic inequalities they claim to be fighting against.
But hey, at least they’re raising money from investors who are desperate to seem woke, right? After all, who doesn’t love a good cause-based marketing scheme?
