Screen Readers Skip to Content

State of U.S. LGBT Entrepreneurship

Author: StartOut
Published: 4th Jan 2017
Peer-Reviewed Publication: N/A
Additional References: LGBT Facts and Statistics Publications

Summary: Startups founded by LGBT entrepreneurship community at risk for discrimination affecting businesses location, ability to raise capital and how they build trust with investors.


Main Document

New Study Sheds Light on State of LGBT Entrepreneurship in the U.S. - More than one in three LGBT entrepreneurs funded or seeking funding are not "out" to investors...

Startups founded by the lesbian, gay, bisexual and transgender (LGBT) entrepreneurship community are at risk for discrimination--affecting where they locate their businesses, their ability to raise capital and how they build trust with investors - according to a new study from StartOut, a national non-profit organization that supports, educates and connects LGBT entrepreneurs.

The study, "The State of LGBT Entrepreneurship in the U.S.," by University of Chicago Booth School of Business Clinical Professor Waverly Deutsch, a member of StartOut; StartOut Vice Chair, Vivienne Ming; Chicago Booth Adjunct Professor of Marketing and StartOut board member, Mary Shea; and StartOut board member and Chair Emeritus, Chris Sinton.

This is the first study of its kind to shed light on the experiences of LGBT founders of high-growth companies.

Combining quantitative and qualitative research methods, the study analyzes a survey of 140 LGBT entrepreneurs, a big-data set of more than 100,000 straight and LGBT founders and extended interviews intended to capture the personal stories of LGBT founders.

Among the key findings:

"It seems politically correct to say that whom one happens to love is not relevant in business, but our research shows otherwise," said Booth's Deutsch. "LGBT entrepreneurs specifically choose diversity-friendly states to start their companies; raise less capital than their straight counterparts and have to balance the risk of homophobia and discrimination with creating authentic relationships with investors, customers and partners."

"By leveraging massive online datasets, we can clearly see the profoundly negative impact of discrimination on job creation, and the unintended boon it provides states like California and New York," according to Ming, StartOut's Vice Chair and Socos Co-founder.

StartOut's groundbreaking inaugural study marks the first step in its ongoing research program aimed at painting a clearer picture of the state of LGBT entrepreneurship in the U.S. This initial study was sponsored by Credit Suisse with support from Booth's Polsky Center for Entrepreneurship and Innovation.

"Economic equality is a critical step along the continuum of progress for LGBT people," says StartOut's Executive Director Andres Wydler. "Over the next few years, we will offer policy makers and business leaders the data and evidence they need to more fully understand the LGBT entrepreneurial experience."

Founded in 2009 with chapters in New York City and San Francisco, StartOut is a national non-profit 501(c)(3) organization fostering and developing entrepreneurship in the lesbian, gay, bisexual and transgender ("LGBT") community. StartOut helps aspiring LGBT entrepreneurs start new companies; supports current LGBT entrepreneurs as they grow and expand their existing businesses; and engages successful LGBT entrepreneurs as role models and mentors. StartOut's goals are to support, educate, inspire and connect members of the LGBT community around entrepreneurship and business leadership. For more information, please visit startout.org

Post to Twitter Add to Facebook

Latest LGBT Facts and Statistics Publications

The above information is from our reference library of resources relating to LGBT Facts and Statistics that includes:

West Virginia University LGTBQ button - Image Credit: WVU Photo/Sean Hines. thumbnail image
A survey of junior high and high school students in rural Appalachia about gender identity found over 7% shared a gender identity that did not fully align with the sex they were assigned at birth.
Publish Date: 8th Aug 2022 - Updated: 5th Jan 2023
Pathways Into Poverty for LGBTQ Adults Study thumbnail image.
Report by Williams Institute at UCLA School of Law provides exploration of common pathways into and prolonging poverty among diverse population of low-income LGBTQ people in California.
Publish Date: 30th Sep 2020
A Summary of Data on LGBT Suicide for Suicide Prevention Month thumbnail image.
Research shows that anti-LGBT discrimination and victimization contribute to an increase in the risk of suicidality and that LGBT people are at disproportionate risk of suicidal ideation, planning, and attempts.
Publish Date: 6th Sep 2020
Percent of all U.S. households reporting as same-sex couple households: 2010 Census - Image Credit: www.census.gov thumbnail image
Estimates of same-sex couple households in the American Community Survey including margin of errors for same-sex couple U.S. households.
Publish Date: 15th Feb 2018


1Transgender Reporting Guide
How to write about transgender people.

2Am I Gay? Questions to Ask
Think you may be gay or bisexual?

3Glossary of Sexuality Terms
Definitions of sexual terms & acronyms.

4LGBTQ+ Pride Flags
Symbols of Identity and Inclusion.

5LGBT Awareness Dates
Important LGBTQ community awareness days, remembrance dates, and coming pride events.

• Submissions: Send us your coming events and LGBTQ related news stories.


• Report Errors: Please report outdated or inaccurate information to us.



• (APA): StartOut. (2017, January 4). State of U.S. LGBT Entrepreneurship. SexualDiversity.org. Retrieved November 9, 2024 from www.sexualdiversity.org/edu/stats/656.php


• Permalink: <a href="https://www.sexualdiversity.org/edu/stats/656.php">State of U.S. LGBT Entrepreneurship</a>