Why Queer-led startups and allyship matter now more than ever

The startup world thrives on innovation – new ideas, fresh perspectives, and bold solutions to problems others overlook.

Queer-led businesses have been driving that kind of innovation for decades, yet we remain one of the most underfunded, undervalued, and underestimated forces in the ecosystem.

Right now, we’re experiencing a critical moment where the progress we’ve fought hard for is being actively threatened. Across the globe, diversity, equity, and inclusion (DEI) initiatives are being quietly scrapped or aggressively attacked.

The US backlash is creeping into certain Australian boardrooms, causing some leaders to second-guess their activities, revealing which businesses were genuinely committed to change and which saw inclusion as a branding exercise.

At a time when LGBTIQA+ people are being used as political scapegoats, the question in business is: who will stand firm and back us?

The opportunity that’s being missed

From my perspective as both a queer person and a founder, startup culture is inherently ‘queer.’ Startups challenge the norm, question outdated systems, reimagine how things are done and boldly put new ideas into the world.

And yet, despite the innovation we bring, many queer-led businesses struggle to scale – not because they lack vision, but because they lack access.

Queer Town founder Archie Beetle

The numbers don’t lie:

In 2023, female-founded startups secured just 4% of Australia’s $3.5 billion in startup funding, with all-male teams dominating investment.

Queer founders raise 16% less than their non-queer counterparts, however, once funded, LGBTQ+ founders create 36% more jobs, file 114% more patents, and achieve 44% more exits than the average founder.

Investors are significantly more likely to fund entrepreneurs who share similar backgrounds, creating systemic bias against women, LGBTIQA+ founders, and people of colour.

I’ve felt this disconnect firsthand. Queer Town is now in its sixth year, outlasting 95% of startups, and demand for our work is the highest it’s been to date.

We’ve partnered with major players like Cotton On Group, Siemens, The Australian Ballet, City of Melbourne, Kieser, and GMHBA, delivering tangible impact across diverse sectors.

And yet, in the startup and investment space, we can be treated like a diversity checkbox or a feel-good initiative, rather than what we actually are: a high-performing, values-driven business with proven outcomes.

The myth that DEI is ‘On the way out’

Despite the media’s narrative around the decline of DEI, the reality we’re seeing at Queer Town is very different. We’re engaging with more businesses who understand LGBTIQA+ inclusion is a necessity and long-term business strategy.

Businesses are asking harder questions:

Are our leaders equipped to navigate real conversations about inclusion?

Do our policies and processes reflect the business values we promote?

Is our business capturing the diverse talent we need to succeed?

We’re having organisations ask us: how can LGBTIQA+ inclusion become part of our business DNA, rather than an optional exercise?

At GMHBA, this looked like reviewing processes to centre inclusion across recruitment, leadership, and member experience.

At global fintech, Novatti, it meant developing a structured, organisation-wide approach to supporting gender transitions in the workplace.

And at The Australian Ballet, it led to rethinking job titles and internal language to ensure every dancer and staff member feels welcome.

This work goes beyond rainbow cupcakes at morning tea, it achieves systemic, long-term, meaningful change, improving the mental health and job satisfaction of team members and reducing absenteeism and staff turnover for businesses.

According to Deloitte Insights 2021, organisations with inclusive cultures are:

2 x more likely to meet or exceed financial targets.

6 x more likely to be innovative.

8 x more likely to achieve better business outcomes.

All the research tells us that diversity is good for business. So it’s safe to say that the leaders who are backtracking in order to appease short-term political agendas are going to feel the long-term impacts of a less engaged, less productive, less diverse workforce.

For leaders pulling back on inclusion to chase short-term political wins, the long-term impacts will be a less engaged, less innovative, and less competitive workforce.

Allyship that actually counts

For startup founders, baking inclusion into your business model early is one of the best things you can do for long-term success. The companies that get this right from the start – embedding equitable hiring, inclusive policies, and psychological safety – avoid costly course corrections down the track.

Canva, one of Australia’s biggest startup success stories, made culture a core pillar from day one, ensuring inclusion was built into its bones rather than retrofitted later.

For investors, take 10 seconds to do a quick mental audit. Think of the businesses you back. How many have minority founders? Are any LGBTIQA+? If not, why?

As an investor, you need to think about the legacy you’re building in business. Strategic VCs and angel investors are actively seeking out underrepresented founders because they know that diversity drives innovation. It’s not just an equity move, it’s a smart business decision.

Who’s paying attention?

Queer founders aren’t waiting for permission. We’re already building businesses that reflect the evolution of the world as it’s evolving.

The investors, startups, and leaders who value diversity now are the ones future-proofing their organisations. They’re building cultures that attract top talent, drive innovation, and actually represent the communities they serve.

We already know diversity is good for business.

The question is: who’s paying attention and who’s going to get left behind?