April 16, 2025 – StartOut, in collaboration with the Eidos LGBTQ+ Health Initiative at the University of Pennsylvania, is proud to announce the release of a pivotal new report Diminished Diversity in Entrepreneurial Pipelines. This report highlights barriers faced by LGBTQ+ entrepreneurs, with a special focus on underrepresented racial and gender groups within the LGBTQ+ community.

“This research marks a significant milestone in our efforts to study and understand the existence of the ‘leaky pipeline’, a phenomenon where underrepresented groups are disproportionately lost at various stages of entrepreneurial journeys,” said Irene Tang, co-author of the report and Director of Data and Insights at StartOut.

Key Insights from the Report:

• Although representation at the initial exposure phase is very diverse, StartOut observed sharp declines in representation at the accelerator acceptance phase, a vital stage of the entrepreneurial pipeline.
• African American / Black founders comprised of 16.6% of initial participants but make up only 4.9% of the accelerator stage
• Female founders comprised of 41.3% of initial participants but make up only 27.2% of the accelerator stage
• Non-binary founders comprised of 9.7% of registered founders but make up only 2.5% of the accelerator stage

“As a longtime researcher of diversity in entrepreneurship, I find the StartOut and Eidos research results discouraging. If StartOut, with its dedicated diversity programs, experiences this leakage, it’s likely much worse for LGBTQ and racially diverse founders in less attentive organizations. This highlights the need for data collection to identify systemic bias and track our progress, holding us accountable,” said Waverly Deutsch, startup mentor and retired entrepreneurship professor at The University of Chicago Booth School of Business. “Diversity isn’t just a buzzword; it’s vital for innovation and economic success.”

The report also provides targeted recommendations to improve diversity within accelerator programs:

• Enhanced Outreach & Recruitment
  • Focus on especially underrepresented founders like women, gender non-conforming, and racial/ethnic minorities in marketing, recruitment, and tailored programming, such as having leaders and influencers in their respective groups to advertise programs and events.
• Tailored Support Programs
  • Offer customized workshops and mentorship programs that address the unique needs of minority founders, such as specialized training to overcome systemic barriers
• Equitable Funding Opportunities
  • Create funding initiatives targeting underrepresented groups, such as scholarships and pitch events that target minority founders.
• Intersectional Data Collection
  • Expand data collection to capture race, gender, sexual orientation, and other factors to understand how these influence entrepreneurial journeys.
  • Ensure staff has representation and competency training to prevent bias.
  • Hold focus groups with underrepresented members to understand barriers and how to overcome them.

“While analyzing the impact of our programs, we observed a concerning decline in the participation of especially underrepresented founders as they progressed through our programs and services. This led to a collaboration between StartOut departments to analyze new strategies and approaches to enhance our commitment to diversity, equity, inclusion, and belonging for all our founder members,” said Tarik Perkins, co-author of the report and Chief Programs Officer at StartOut. 

“LGBTQ+ entrepreneurs are essential in shaping the future of our communities, building the businesses and services that foster long-term wellbeing. However, many face significant barriers, particularly those who belong to racial, gender, and sexual minority groups. Our collaboration with StartOut underscores the critical need for equitable support for all LGBTQ+ entrepreneurs and highlights the importance of supporting StartOut’s commitment to addressing the leaky pipeline for LGBTQ+ entrepreneurs. By identifying and addressing these gaps, StartOut can ensure their programs are both inclusive and evidence-based, paving the way for every entrepreneur to thrive,” said Eidos in a statement on the significance of this research. 

Explore the Findings & Sponsorship
To download the report summary or to explore the full report, “Diminished Diversity in Entrepreneurial Pipelines” visit startout.org/insights.

StartOut’s research was sponsored by Tawani Foundation. For further questions, or to contribute as a sponsor, contact info@startout.org.

About Eidos
The Eidos LGBTQ+ Health Initiative at the University of Pennsylvania engages leaders from community, academic, civic, and business spheres to co-create innovative solutions that ensure impact for LGBTQ+ communities. We take an action-oriented, world-class evidence-based approach to further the sustained well-being of the LGBTQ+ community.