Access to capital is perhaps the biggest challenge for entrepreneurs across all demographics, including LGBTQ+ founders. Between 2000 and 2022, only 0.5% of all funding for startups went to LGBTQ entrepreneurs.¹

JPMorgan Chase Commercial Banking is proud to work with businesses and community organizations that help lower barriers to capital and nurture strong relationships among all founders.

We talked to leaders within the LGBTQ+ business community about how business owners can improve their chances of securing capital without sacrificing their authenticity.

Establishing an embedded network

When they’re first launching their businesses or trying to scale, LGBTQ+ founders often don’t have a broad list of contacts to lean on, said David Barbee, Head of LGBTQ+ Initiatives for JPMorgan Chase Commercial Banking. “Not having that embedded network is an immediate barrier they have to address and tackle,” he said.

But it’s not as simple as meeting more people.

“As they’re developing and building a network, LGBTQ+ founders are reading the room, trying to determine if they’re in a safe space,” Barbee said. “‘Am I comfortable disclosing my identity to the people I’m engaging with?’ That’s an added complexity that the broader entrepreneurial community doesn’t face in as impactful a way.”

JPMorgan Chase strives to break down those barriers. It does so directly—by providing capital, expertise and financial solutions to diverse and underserved business owners—and indirectly via partnerships with organizations that help LGBTQ+ founders develop networks. Those organizations include StartOut and the National LGBT Chamber of Commerce.

“Whether it’s capital or other resources—private coaching, mentoring, access to diverse-supplier opportunities and new customer acquisition opportunities—they all help founders become more embedded in the business community and more visible,” Barbee said. “It’s about being very intentional in creating that space for founders to be comfortable being their full, authentic selves as they develop relationships and as we bring more resources to the table.”

Two such resources: 

• Capital Connect by J.P. Morgan: The members-only digital platform provides networking, data and tools to help early stage startup founders and venture capital investors connect and grow.
• J.P. Morgan Workplace Solutions: This resource provides full-service administration of global employee stock programs, executive services, financial education and more. 

Authenticity from the onset

Fortunately, there are plenty of success stories among LGBTQ+ founders who were initially apprehensive about being open earlier in their careers but discovered the value of authenticity. One duo of founders said they made an important realization years later.

When Jess Page and Nicole Doucet first started raising capital for Open Water, which sells purified water in recyclable aluminum bottles and cans, they kept their personal lives to themselves. As the business grew, they realized a good fit requires more than just funding.

“You don’t want someone on your cap table who doesn’t respect who you are,” said Doucet, the company’s CEO. 

Being authentic from the start can help in the long run. When founders connect with potential business contacts, they talk about the causes and values that are personal and meaningful to them, said Page, who serves as chief brand officer for Open Water. “If you’re trying to be too discreet, that will come across,” she said.

‘The sauce that holds it all together’

Many founders find the funding, connections and confidence they need through accelerator programs such as Techstars and the StartOut Growth Lab.

Since its founding, the Growth Lab helped 74 companies raise over $892 million in funding and create more than 4,216 new jobs, said Tarik Perkins, Chief of Programs for StartOut.

Despite receiving only half a percent of all startup dollars over roughly the past 20 years, LGBTQ+ founders have excelled when given opportunities.

“LGBTQ+-founded companies today create 36% more jobs compared to the average entrepreneur,” Perkins said. “LGBTQ+ founders have created 114% more patents compared to the average entrepreneur. And they’re 44% more likely to exit, despite having 16% less funding.”

The potential is great, he said. “The problem is getting the support. Being a founder can be a very lonely place, and having access to a community of founders who can relate is invaluable. It’s the sauce that holds it all together.”

How we’re helping

JPMorgan Chase aims to lead by example by making sure the voices and perspectives of LGBTQ+ businesspeople are represented throughout the firm and encouraging the broader business community to be more inclusive. Through our Office of LGBTQ+ Affairs, we support organizations and initiatives that inspire future business leaders, provide training and resources, and try to close gaps experienced by marginalized populations. Follow us on LinkedIn to learn more.

Looking for more resources that can help LGBTQ+ founders scale their businesses? Learn about the process of becoming a certified LGBT Business Enterprise and connect with peers and organizations that can expand your network. 

Reach out to your banking relationship team to learn how we can help support your business. 

JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/cb-disclaimer for disclosures and disclaimers related to this content.