Why spotlighting LGBTQ+ founders is a business imperative

Hello and welcome to Modern CEO! I’m Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.

Earlier this month, Inc. convened a group of business leaders for networking and candid conversations about the opportunities and challenges facing LGBTQ+ founders. Twenty of their stories accompany this striking photo portfolio published last week.

Media outlets have been shining a spotlight on powerful LGBTQ+ individuals for years, but lists such as the Out 100 call attention to artists and activists while Fast Company’s Queer 50, which recognizes innovators in tech, business, and beyond, is heavy on corporate leadership.

Navigating a different landscape

LGBTQ+ founders face different challenges than their big company counterparts. They struggle to raise capital—roughly 0.5% of startup funding goes to LGBTQ+ entrepreneurs—secure loans, and may encounter bias from prospective customers, suppliers, and even employees. They’re also seeing a rise in efforts to erode LGBTQ+ rights and diversity, equity, and inclusion (DEI) initiatives.

Rather than shrinking from these challenges, LGBTQ+ founders are tackling them head on. “Being a Black, LGBTQ CEO is complicated, especially in these dangerous times that my Black and LGBTQ communities are facing,” Marc Coleman, founder of software development agency The Tactile Group, tells Inc. “It is even more critical to be visible.”

Many LGBTQ+ leaders feel they can effect more change for the community through entrepreneurship than they could through corporate roles. “It is foolish to believe that you can fundamentally augment or shift anything just by virtue of being a queer person in a boardroom,” says Sloane Ortel, chief investment officer at the Ethical Capital Investment Collaborative. “What you need to do, if you are interested in having some kind of real impact, is find a special place. Either build it, or get there.”

Creating inclusive spaces

Adam Scher, cofounder of creative studio CMYK, says being a founder empowered him to create an inclusive workplace. “My openness encourages others to be themselves, creating a diverse workplace where our differences are celebrated and our work is strengthened,” he says. “After all, if we can’t bring our true selves to work, how can we perform at our best?”

And while many other outlets have overlooked the impact and power of LGBTQ+ entrepreneurs, shining a spotlight on lesbian, gay, bisexual, trans, and queer founders is part of Inc.’s mandate, says Mike Hofman, the title’s first openly gay editor in chief. “When I think of the LGBTQ+ community, I think of creativity and resilience. And when I think of the entrepreneurial community, I think of creativity and resilience,” he says. “Both identities are rewarding but also sometimes difficult and even lonely. So, to have a room full of founders networking and telling stories and making profound connections to me feels like a really foundational part of Inc.’s mission. I’m glad that we can embrace that mission and advance it in ways that feel more forward-looking and in step with the times.”

How does your company include LGBTQ+ employees?

LGBTQ+ readers, how do you show up in your workplaces? For founders and business owners, how has starting a company enabled you to advance professional and social goals? Send your experiences to me at [email protected]. I’ll share insights in a future newsletter.

Read and watch more:

If you’re not supporting LGBTQ+ workers you’re missing out on a pool of talent

Queer 50 honoree Candace Parker is president of Adidas Women’s Basketball

Why we must share stories of successful LGBTQ+ entrepreneurs

6 in 10 Americans support DEI in the workplace