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‘Cut Me A Check’ – Technology Flow

No data To show how little venture funding goes to trans founders.

Only a report from Backstage Capital found that 1% of all venture funds went to entrepreneurs who openly identify as LGBTQ+. (According to a recent Gallup poll, 7.1% of Americans identify as LGBT+.)

Considering how easily homophobia and transphobia slip in, and how investors can prevent them from giving money to those they don’t support or understand, it’s a pittance in funding.

“Investors are so overwhelmed by the complexities of this patient population that we can’t pitch our product.” Kate Anthony, Founder, Euphoria

Kate Anthony, founder of Euphoria, an app that connects people to gender-affirming healthcare resources, said her fundraising journey was daunting and “really difficult”. Investors didn’t understand how big the trans population was or why her company was needed. She also faced many prejudices.

“There’s a 50-50 chance when I talk to someone, they don’t want to see someone like me,” she says.

“It was an enormous trial and error game,” she said, adding that she pitched to 272 investors and landed 12 on Euphoria’s pre-seed cap table. She wants to raise a formal seed round, but is hesitant because of the economic climate, not to mention the potential bias she faces as a trans founder. “It’s frustrating and depressing.”

Technology Flow conducted a survey — what we like to call a “vibe check” — of current market sentiment for trans founders looking for venture capital money, especially when their product is targeted at the trans community. Many said that investors often distrusted the market potential of their product, while others described the emotional process of walking themselves out of every meeting with people who may or may not support their existence.

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