A venture capital firm based in Columbus raised a new fund to invest in LGBTQ founders, as well as startups that serve the LGBTQ community.
Loud Capital raised $10 million this month for its Pride Fund 1, a VC fund that plans to invest in early-stage startups and growth companies. The fund will be led by CEO Densil R. Porteous, the founder of DePorteous Consulting.
Less than 1% of U.S. venture capital deals go to LGBTQ entrepreneurs, according to Backstage capital, and almost 40% of LGBTQ founders chose not to self-identify as members of the LGBTQ community when raising funding, according to StartOut.
Through Loud's Pride 1 fund, the firm aims to boost LGBTQ founders and put more capital in the hands of startups that impact that community.
Loud, founded in Columbus in 2015, expanded to Chicago in 2018. Its investments include Chicago-based internet of things startup Xaptum and chicken restaurant Hot Chicken Takeover.
Loud's Chicago office is led by Nishad Parmar, who on Wednesday was promoted to senior partner and chief investment officer.
Loud also announced that it's launching a new $50 million alternative investment fund that will be based in Chicago. The fund, called the Loud Dividend Growth Fund, aims to provide investors faster returns than traditional VC. The fund's investments will include venture debt, life settlements and early-stage equity.
Parmar said that fund expects to begin fundraising in the coming weeks.
Loud is also planning to grow its Chicago office by adding a handful of new employees in the coming months, Parmar said.
