Til Klein and Jochen Beutgen were inspired by Gaingels, a U.S.-based syndicate of angel investors supporting LGBTQ+ founders. This led to their idea of creating a similar firm for the European LGBTQ+ startup community. Five years later, with no such firm in existence, Klein and Beutgen took the initiative to launch Identity.vc.
In 2023, Identity.vc was established as a venture firm focusing on early-stage companies with LGBTQ+ founders or executives. Based in Berlin, the firm is currently raising €50 million for its debut fund, having secured €15 million so far, and has also welcomed Mari Luukkainen as a principal to the team.
Identity.vc invests between €250,000 and €1.5 million in companies from pre-seed to Series A stages, across various sectors in Europe and beyond. The firm has already backed four companies, including eco.mio and Paxton.
Klein emphasized the importance of LGBTQ+ founders being open with their investors to build trusted relationships. The firm’s strategy has been well-received, making fundraising relatively smooth. Investors are increasingly looking for diversification opportunities, as highlighted in a recent Morgan Stanley survey.
Studies have shown that diverse teams tend to outperform non-diverse teams, reinforcing the value of supporting diversity in startups. Identity.vc has been embraced by LPs and the European startup ecosystem, offering a positive narrative amidst challenges faced by similar firms in the U.S.
By focusing on creating a European community for LGBTQ+ founders and investors, Identity.vc aims to pave the way for future opportunities and collaborations. The firm’s initiatives, such as a Slack channel and community events, have already fostered connections and created value for both startups and investors.
While still in the early stages of fundraising, Identity.vc is making a significant impact and is poised for further growth. The firm’s commitment to diversity-driven performance and supporting the LGBTQ+ community sets it apart with unique access to startups and promising deals.
