Crunchbase to Track LGBTQ+ Founder Funding: A Major Step in Inclusivity Efforts

Crunchbase: Tracking the Investment of LGBTQ+ Founders

Crunchbase, the leading platform for fetching information about technology investments, has now made an announcement regarding its initiative to include data on venture capital allocated to the LGBTQ+ community.

As the world continuously becomes more accepting of diversity, there has been a noticeable increase in the number of investors dedicating resources to support LGBTQ+ founder start-ups. Crunchbase's new initiative comes at a time when the spotlight must also be shone on these financial investments, an issue that has previously been neglected. The announcement was made earlier this year, declaring the tracking of venture capital dollars in an attempt to address the lack of statistics regarding the involvement of the LGBTQ+ community in venture capital investments.

The New Data on Investments

One of the strategies adopted by Crunchbase to effect changes in this area of investment records is to introduce free access to its users. They call it ‘Diversity Spotlight,' which gives users direct access to graphs and statistics on the investment of LGBTQ+ founders, amongst other underrepresented groups. Previously, people had to upgrade to Crunchbase's "Pro" package to access this information.

Diversity Spotlight was first launched in April of 2018 to help address underrepresentation in venture capital and is present in the United States. It aims to collect data that will help people have an understanding of how much capital these underrepresented founders are attracting. It provides statistics on female founders, Black founders, Latinx founders, and now, LGBTQ+ founders. Users can easily filter their searches to identify companies that support diversity and organizations that advocate for equal rights in the workplace.

With Crunchbase tracking venture dollars allocated to underrepresented groups in society, awareness is created, and thereby, progress made. By knowing the figures and statistics, people can better understand which groups are gaining more traction in investment opportunities. Some say it will help those who feel forced to continue hiding their identities to be more open about who they are in the workplace.

The Importance of Addressing the Needs of the LGBTQ+ Community in Investment

The introduction of Diversity Spotlight will help Crunchbase in gaining more insight into investment trends and increase the industry's transparency. The Diversity Spotlight feature provides information on companies that allocate funds to promote diversity and inclusion. This is a massive milestone as it will encourage more investment in diverse companies and, in particular, benefit LGBTQ+ founders in the long term.

It is pertinent to note that Crunchbase reports a steep increase in venture capital investments in businesses that advocate for the LGBTQ+ community's rights. The introduction of these tracking tools will encourage more investors to seek out such businesses to invest in and ultimately fast track progress.

Among the notable companies in the LGBTQ+ space that have recently attracted funding is Trans Lifeline, a nonprofit organization that offers support to the trans community. The company raised $225,000 in 2020 and has been doing a lot of work to offer support for those experiencing gender dysphoria. Gay Groupon, also known as TravelGay, raised $2m in 2020, and it is one of the biggest platforms that promote LGBTQ+ travel.

Conclusion

Crunchbase's decision to track venture dollars allocated to the LGBTQ+ community is a substantial move that demonstrates the importance of inclusivity in our society. It highlights the commitment of Crunchbase to promoting transparency in venture capital investment and ultimately leads to a more diverse and inclusive industry. It is a call to stakeholders in the investment industry to put in more efforts to prioritize investing in underrepresented groups and minorities.

The Diversity Spotlight feature presents a platform for any advancement in funding research. It offers an excellent way to promote transparency and accountability as it increases investors' understanding of their investment decisions' impact on society and underrepresented groups in particular. We cannot undervalue this positive step Crunchbase has taken, and with time, it will set the pace for more industries to take bold measures toward creating an inclusive society.