Most LGBTQ+ founders and investors hide their gender or sexuality

Fresh questions over a lack of diversity in the tech sector emerged today after a report found 75% of LGBTQ+ founders and nearly 80% of investors withhold their identity from their peers in the ecosystem, potentially resulting in worse health conditions and lower cognitive performance.

Just ⅓ of investors who said they were taking action to support ‘diverse’ founders were doing anything to support LGBTQ+ founders, a report by Proud Ventures found, while some founders shared shocking examples of direct queerphobia and discrimination they faced as part of their fundraising process.

Gay founders raised 2.25x more than bisexual and 22x more than lesbian founders and cis men founders raised 2.5x more than cis women founders and 10x more than trans founders.

Edward Kandel, investor at Founders Factory and a founding member of Proud Ventures said: “Recent research has shown us that concealment is a real tax on LGBTQ+ people.

“Academic studies have found increased concealment comes at a cost to an individual’s wellbeing with a greater risk of depression, anxiety, and poorer cognitive and physical health. We need to change the script and create an open and welcoming ecosystem where people should not have to hide who they are.”

Nick Telson, a venture capital investor who founded DesignMyNight, told the Standard investors must take action to make all entrepreneurs feel comfortable in their own skin when they are pitching ideas to raise funds.

“In the VC world they have this cookie cutter approach to what a founder looks like and sounds like, and that’s why we have fewer people who are women, who are people of colour and who are LGBT.

“The majority of investors are straight white males and normally of an older generation so it doesn’t surprise me that founders come across as more small c conservative if that’s what they want to see or hear.

“With my team I have always been open about being gay, but I did conceal it with a lot of my clients…who would often ask leading questions like ‘do you have a wife or a girlfriend [so] people don’t feel comfortable pitching.”

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Census data reveals LGBT+ populations for first time

More than 1.3 million people in England and Wales identify as lesbian, gay or bisexual, census data has revealed for the first time.

For people aged 16 and over, more than 1.5% - 748,000 - identify as gay or lesbian, and 624,000 (1.3%) as bisexual.

Some 165,000 people identify as "other" sexual orientations.

And 262,000 people (0.5%) said their gender identity was different to their sex registered at birth.

This is the first census that has asked people about their sexual orientation and gender identity.

The census, which took place in England and Wales on 21 March 2021, offers a snapshot of the population. The total population of England and Wales is about 59.6 million.

Before it was circulated, the government said the information would provide evidence about inequalities to tackle discrimination and improve decisions made about health care, education, employment, housing and social services for lesbian, gay and bisexual people.

Completing this section of the census was voluntary.

Geographical variation

Brighton and Hove was the local authority with the highest percentage (10.7%) of people identifying as "LGB+", - lesbian, gay, bisexual or any non-heterosexual sexual orientation.

Seven of the other local authorities in the top 10 were in London.

In Wales, Cardiff was the local authority with the biggest LGB+ population (5.3%).

Map of LGB+ sexual orientation by local authority

London was the English region with the highest percentage of people who said their gender identity was different from their sex registered at birth (0.91%). The South West was the region with the lowest percentage (0.42%).

London also had higher proportions of people identifying as transgender men (0.16%) and trans women (0.16%) when compared with the rest of England and Wales.

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The decision to include a voluntary question about gender identity in England and Wales was welcomed by some charities as a "step in the right direction".

Research suggested that asking just the one question in previous censuses about a person's sex was a "barrier" to some taking part who felt it did not apply to them.

Smaller surveys have indicated that less than 2% of the population of England and Wales currently identify as lesbian or gay.

Previously the government estimated there to be between 200,000 and 500,000 transgender people in the UK.

Census respondents were asked voluntary questions about their sexual orientation, and whether their gender identity is different to their sex registered at birth.

Around 3.6 million people (7.5%) did not answer the question on sexual orientation, while 2.9 million (6.0%) chose not to disclose their gender identity.

Those who did answer were able to select from options including heterosexual, gay, lesbian and bisexual. They could also select "other" and fill in a text box describing their sexual orientation.

Chart showing sexual orientation figures

Of those who selected "other sexual orientation":

Respondents were also asked whether their gender identity matched their sex registered at birth. Those who selected "no" were asked to fill in a text box describing their gender identity.

Chart showing gender identity figures

Of these:

Those aged 16 or over who did not wish for their answers to be revealed to other members of their household were able to submit a separate form to keep their answers anonymous.

Jen Woolford, Population Director for the Office for National Statistics (ONS), the body responsible for carrying out the census, said the data will help to "tackle inequalities" in the LGBT+ community.

She said: "We've introduced those questions as a reflection of of our society becoming more diverse, but also because there are now clear user needs for more information on that kind of diversity and the richness of our population.

'Landmark moment'

Dr Kevin Guyan, Research Fellow at the University of Glasgow and LGBT data expert, has called the information a "landmark moment for inclusion".

He urged that the figures be used to benefit communities.

"The data will not, on its own, address issues negatively impacting many LGBT people such as the cost-of-living crisis, access to healthcare and affordable housing," he said. "It must be understood as the first step in a longer project of change."

Matthew Belfield, spokesperson for Manchester-based charity the LGBT Foundation, said the data will help them better target services across the country.

He said: "Manchester is such a hot spot for the LGBTQ+ community, but other communities aren't so lucky.

"By asking these type of questions on a national level, it means that resources will be allocated in the correct way, that their communities will have their needs addressed."

Matthew Belfield, from the LGBT Foundation smiles at the camera
Image caption,The LGBT Foundation's Matthew Belfield said it would help the charity to better allocate resources

Scotland's census was delayed due to the pandemic, but its responses are expected to be released later this year.

Northern Ireland's didn't include a question about gender identity. The responses to its question on sexual orientation are also due to be published this year.

Information about how age groups and ethnicity intersect with these figures hasn't yet been released. However, previous surveys found 16-24-year-olds are more likely to identify as lesbian, gay or bisexual, and in recent years there has been a small gradual decline in the number of people identifying as exclusively straight.

Canada is the only other country so far to have released data related to gender identity.

New Zealand will also include similar questions in its census in 2023.

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