The new company, LGBT Capital, is breaking through the boundaries of the typically conservative banking market and reaching out to the niche community due to the recent growth and influence of lesbian and gay consumers.
LGBT Capital will be creating a fund that will invest in companies all over the world that provide products and services to the LGBT community. In the past these companies have lacked publicity, sufficient financial support, and professional business development advice which has prevented their expansion and success.
“LGBT-oriented business owners often have the desire to expand, but also frequently lack the expertise, correct capital structure or know-how to access funding,” Paul Thompson, a co-founder of LGBT Capital, said in a statement, according to The New York Times. “We believe there is a significant opportunity to provide the financial expertise typically found within an investment banking context to LGBT companies, which in turn would allow quality companies to secure funding.”
Although supportive, some investors are hesitant to put their money towards only a few investments. As a result, LGBT Capital will be collecting a sum of investor cash to put towards numerous LGBT market related projects.
“There is huge interest from investors to be part of the growth in the L.G.B.T. market, but without concentrating risk in just one or two investments,” stated Mr. Thompson.
To learn more about this story visit the investment banking section of The New York Times.