From chronic underrepresentation within the C-suite to systemic barriers in access to venture capital, here’s how queer professionals can overcome challenges in the tech industry.
Tim Cook, CEO of Apple. Sam Altman, CEO of OpenAI. Peter Thiel, co-founder of PayPal. Martine Rothblatt, co-founder of SiriusXM. Chris Hughes, co-founder of Facebook. Arlan Hamilton, CEO of Backstage Capital (and the only Black queer woman to have built a VC firm from scratch). It’s a truism that some of the most powerful people in tech just so happen to be 2SLGBTQIA+* identifying individuals.
Which may not be that altogether surprising. The tech industry, after all, has long been celebrated for its innovation, disruption, and forward-thinking ethos.
Moreover, the queer community has had a unique and symbiotic relationship with technology, particularly the internet, since its inception. In the early days of the web, for example, online forums and chat rooms provided a rare and crucial space for queer people to connect, share their experiences, and find support. The anonymity that the internet provided was especially vital during times when being openly queer was met with widespread stigma. During the AIDS epidemic of the 80s and early 90s, the internet acted as a veritable lifeline, disseminating essential information about the disease and fostering a global support network for those affected.
In more recent years, social media and data apps specifically designed for queer people (Grindr and HER, just to name a few), have revolutionized how 2SLGBTQIA+ individuals connect, date, and build communities, fostering a sense of belonging and visibility that extends beyond geographic limitations.
Yet, despite this historical bond and progressive attributes, 2SLGBTQIA+ folks face persistent challenges within the tech ecosystem, spanning from experiencing discrimination during interviews to underrepresentation in leadership roles to difficulties in securing capital for startups.
A recent survey by QueerTech, a Montreal-based non-profit that RBCx partners with, found that less than 40 per cent of Canada’s tech workers feel that 2SLGBTQIA+ employees are consistently treated with respect, and just 14 per cent believe that being part of the community is a benefit to acquiring employment. The report cited a 2016 finding from Telus that 57 per cent of 2SLGBTQIA+ respondents are not “fully out” at work, and over one-fifth said they worried about a hostile work environment.
RBCx spoke with three queer-identifying leaders within Canada’s tech ecosystem to delve into the challenges facing 2SLGBTQIA+ tech professionals and entrepreneurs. Naoufel Testaouni is the CEO and co-founder of QueerTech. Marlon Thompson is the founder of Future Capital, former CXO for Spring Activator, and an angel investor. Theresa Rowsell is also an investor as well as founder and Principal of Rowsell Inc., a consulting firm that provides executive coaching and fractional COO services to purpose-driven organizations. The panel was led by Arron Lin, AVP Relationship Management at RBCx, in partnership with premier law firm, Fasken.
They shared their insights on the unique challenges faced by 2SLGBTQIA+ founders, the changes needed for Canada’s tech sector to fully embrace its queer members, and simple steps that allies can take to foster inclusion and demonstrate their support.
The struggle for representation
One of the most pressing issues for 2SLGBTQIA+ in tech is their under representation in executive and leadership positions. Despite strides towards inclusivity—and DEI programs within organizations de rigeur—queer executives hold less than one per cent of the upper echelons of tech companies. This absence not only limits the perspectives within leadership teams but also hampers the development of policies that effectively support inclusivity throughout the organization.
Several factors contribute to this underrepresentation. First, there is the issue of workplace culture. Many 2SLGBTQIA+ professionals still face environments where they don’t feel safe or supported in being open about their identities. Queertech’s non-queer survey respondents were significantly more likely to feel safe being themselves at work (89 per cent) versus queer respondents (70 per cent), and that harassment at work is a significant challenge for respondents, with nearly 35 per cent due to their sexual orientation.
Second, the lack of 2SLGBTQIA+ role models in tech (the aforementioned tech titans notwithstanding) further perpetuates this cycle. Without visible leaders to look up to, aspiring 2SLGBTQIA+ tech professionals may struggle to envision themselves in executive positions, reinforcing a status quo where diversity at the top remains limited. This underrepresentation in C-suite roles also creates a pipeline problem where fewer 2SLGBTQIA+ employees are inspired or mentored to become tech entrepreneurs. As a result, the industry sees a lower number of queer-led startups, stifling the potential for innovative ventures that could bring fresh perspectives into the market.
“When you bring in new perspectives, you end up having a different type of creative energy around projects and technologies being built,” says Thompson. “You have a better shot at creating something different—and, more importantly, something that’s going to perform.”
“We need to fix the problem at all levels so queer people can enter and stay in the tech industry. When they’re able to move into leadership roles and build their expertise, we’ll start to see numbers in the investment industry and on the founder side grow.”
Testaouni similarly believes that diversity is a driver of innovation, but stresses that 2SLGBTQIA+ first need to be able to get their foot in the door. “Almost one in two queer people still face some discrimination in the recruitment process,” he says. “That’s why we need to fix the problem at all levels so queer people can enter and stay in the tech industry. When they’re able to move into leadership and executive roles through different programs that are more specific to queer people and as they build their expertise, we’ll start to see numbers in the investment industry and on the founder side grow.”
Capital investment challenges for 2SLGBTQIA+ entrepreneurs
For 2SLGBTQIA+ entrepreneurs and startup founders, securing capital investment presents a unique set of challenges. As is the case for female founders, implicit biases within the VC community can lead to skepticism about the viability of businesses led by queer individuals. This bias, often unconscious, can manifest in investors’ reluctance to fund ventures that do not fit traditional, heteronormative moulds.
Moreover, networking plays a crucial role in the startup ecosystem, and 2SLGBTQIA+ entrepreneurs may find themselves excluded from key networks. These networks are often dominated by cis-het (i.e. cisgender, heterosexual) social structures, where those from the queer community may feel unwelcome or undervalued. This exclusion limits access to potential investors, mentors, and industry connections essential for business growth.
A 2022 report by the Canadian Gay and Lesbian Chamber of Commerce (CGLCC) found that less than one per cent of venture funding went to lesbian, gay, bisexual, transgender, non-binary or queer+ entrepreneurs. This is despite the fact that over 10 per cent of VC Partners identify as 2SLGBTQIA+ which, according to the Canadian Venture Capital and Private Equity Association (CVCA), outperforms the financial industry average at the management level by some 20 per cent. Moreover, 2SLGBTQIA+ create 36 per cent more jobs, achieve 44 per cent more exits, and secure 114 per cent more patents than their non-queer counterparts.
The slowdown in venture capital activity over the last few years, Rowsell says, has only compounded these issues. As capital becomes scarcer, queer founders are hit harder and have to be even more diligent to secure financing. “Going to get funding in this market means that you might need to work four times harder and have four times more conversations in order to get that one dollar,” she explains. “So be ready for a marathon because if there’s an unconscious funding bias that’s going to come into play, it’s going to be a volume game.”
“Queer founders may not be the first in line to receive venture funding, but they’re going to be first to innovate and figure it out for themselves.”
Thompson, however, believes that this added challenge will allow 2SLGBTQIA+ entrepreneurs to be exceptionally resourceful and resilient. “If you’re wondering how to get ahead of running out of capital, I think this is a real opportunity to get creative and figure out sustainability for yourself,” he says. “Queer founders may not be the first in the line to receive venture funding, but they’re probably going to be first to innovate and figure it out for themselves.”
The path forward: fostering inclusivity in tech
Addressing these challenges requires concerted efforts from all stakeholders within the tech ecosystem. Companies, investors, and industry leaders must collaborate to foster an environment where 2SLGBTQIA+ professionals can thrive.
- Address bias in investment: Investors must recognize and mitigate their own biases. This includes diversifying investment teams, actively seeking out 2SLGBTQIA+-led ventures, and implementing blind review processes to evaluate business potential without preconceived notions about the founders.
Rowsell also believes that investors need to redefine their understanding of returns beyond purely financial metrics. “As an investor, I want to make an ROI (return on investment), but it has to be more than that; it has to include social impact,” she says. “So, it’s considerations like what’s it doing for the planet or what’s it doing for people and community.”
- Highlight success stories: Showcasing successful 2SLGBTQIA+ leaders and entrepreneurs can provide inspiration and demonstrate that diversity is a strength. Media coverage, awards, and speaking engagements can help elevate these role models.
However, Testaouni is quick to point out that hearing positive stories shouldn’t take the place of collecting comprehensive data on the experiences of queer individuals in tech. Currently there is a significant lack of research on these experiences, making it essential to systematically track and analyze this information to better understand and address the unique challenges faced by 2SLGBTQIA+ professionals. “Our community has been excluded from a lot of data on the tech space and the people within it,” he says. “When there is an absence of data, all there is are stories.”
- Cultivate inclusive work cultures: Tech companies need to prioritize creating safe and supportive workplaces for 2SLGBTQIA+ employees. This includes implementing comprehensive anti-discrimination policies, offering diversity training, and establishing employee resource groups. Visible support from leadership can also signal a commitment to inclusivity, encouraging more employees to be open with their identities.
Executive buy-in is essential, says Rowsell, adding that failing to create a learning environment for D&I (diversity and inclusion) is consistently the biggest mistake she sees. “I often coach leaders around emotional intelligence, vulnerability, and grace as part of the environment they want to create, and then modeling their personal growth by sharing, naming, and describing the old pattern that they’re trying to rewire,” she explains.As an example, Rowsell suggests eliminating the use of gender specific terms like ‘guys’ when addressing a group, and avoiding assumptions about an individual’s personal life, such as presuming they are married to a different sex. “Just being thoughtful and intentional when you speak will go a really long way,” she says.
“The more intentional we are about bringing diversity of thought into the workplace and the types of companies we invest in, the quicker we’ll see the benefits in our industry, our planet, our communities, and our economy.”
More than anything, Rowsell adds, a truly inclusive culture is one that values diversity of thought. “If you have just one group with similar minds and experiences, you’re in danger of creating an echo chamber—and that leaves innovation on the table,” she says. “The more intentional we are about bringing diversity of thought into the workplace and the types of companies we invest in, the quicker we’ll see the benefits in our industry, our planet, our communities, and our economy.”
- Promote 2SLGBTQIA+ leadership: To break the cycle of underrepresentation, organizations should actively promote and support LGBTQ professionals in their career development. This can be achieved through mentorship programs, leadership training, and ensuring 2SLGBTQIA+ voices are included in decision-making processes. “We need to create space in tech for everyone to thrive,” says Testaouni.
- Build inclusive networks: Industry networks and incubators should strive to be inclusive, offering specific programs and support for 2SLGBTQIA+ entrepreneurs. Creating spaces where queer founders can connect, share experiences, and access resources will enhance their ability to succeed.
Thompson caveats that this will be an ongoing project, continuously evolving to adapt to socioeconomic changes and the needs of the community. “Being an ally doesn’t mean just being broadly supportive of equality,” he explains. ”It means staying up to date with what’s happening with underrepresented, more vulnerable, and marginalized groups and meeting the moment.”
That might be the most important point. In order to truly support 2SLGBTQIA+ professionals in tech, all three leaders argue that allyship has to go beyond passive support or symbolic gestures; it requires individuals to actively advocate for inclusivity and equality.
“Will you speak up publicly and are you doing the work towards progress? For me that’s how simple it is,” says Rowsell.
For Testaouni, active allyship means taking tangible steps to create a more inclusive environment, ensuring that support for the 2SLGBTQIA+ community is evident in organizational practices and everyday actions. After all, he says, “we’re queer 12 months of the year.”
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