Why LGBTQIA* Lens Investing in the Global South Needs Ecosystem Builders, Not Just Capital
I’m often asked why we don’t launch an impact investing fund with an LGBTQIA* lens. Given our work across the Global South and East — in places like Kenya, Mexico, and Eastern Europe — the question is understandable. But the honest answer is: not yet. And not because we don’t believe in the power or potential of LGBTQIA* entrepreneurs. Quite the opposite. It’s because the ecosystems in these regions are not yet robust enough to support the kind of sustainable, long-term investing we believe in.
Yes, it would be possible to take an opportunistic approach — scouring countries to cherry-pick standout LGBTQIA*-led businesses and invest in them directly. But that would be extractive. Impact investing can’t be about lucky punches or isolated success stories. It must be about building ecosystems that consistently produce viable, investable opportunities — not for one-off impact, but for systemic change.
Why Economic Empowerment Matters
When we take a step back, our mission becomes clear. The feedback from every community we engage with is consistent: economic empowerment is foundational to social justice. Without access to finance, networks, and opportunities, underserved communities- including LGBTQIA* individuals — remain on the margins, regardless of their talent, grit, or ideas. If we’re serious about inclusion, we must commit to unlocking agency, dignity, and opportunity through economic means.
That’s why we work across the capital spectrum — from grantmaking to investment — and take a long-term view. We don’t just fund businesses; we nurture systems.
The Realities on the Ground
Let’s take Kenya, for example. The vast majority of businesses we support aren’t trying to be the next fintech unicorn. They’re creative entrepreneurs — artisanal bakers, photographers, fashion designers — whose enterprises are deeply tied to cultural identity and community. These founders don’t need large equity checks. What they often need is working capital for a deposit on a studio space, funds to buy inputs, or support to formalize their business.
The capital gap they face is well-known: they’re too big for microfinance, too small (and too “non-scalable”) for commercial banks or VC funds. And unlike in more developed markets, there’s rarely diversity of capital to bridge that gap. This “missing middle” is where we focus our attention.
Building More Than Businesses
But capital alone isn’t enough. Most of our investments are accompanied by deep ecosystem support: mentorship, capacity building, and, crucially, the creation of safe spaces where entrepreneurs can connect, share, and learn from one another. This is especially vital for LGBTQIA* founders, who often navigate not only business challenges but also social stigma, family rejection, or even legal precarity.
In Nigeria and Ghana — countries we are currently evaluating — the desire to invest is strong, but so are the challenges. The regulatory and social environments for LGBTQIA* people make it even more critical to proceed thoughtfully, with local partners and a long-term commitment to safety and trust-building.
We see time and again how isolated, often pioneering interventions — one-off training programmes, microgrants, or mentorship sessions — die too quickly without living up to their full potential. What’s needed is an entrepreneur-centric, holistic approach. What guard rails and on-ramps are needed to increase the chance of success? Formalising a business is just the beginning. Entrepreneurs then need help with taxes, bookkeeping, hiring, product development, marketing, and distribution. They need capital at the right time and in the right form — often patient, unsecured and concessional. They need access to people who’ve been in their shoes. The impact becomes exponential when all these elements are connected in a system that’s designed to grow with them.
A Call to Action for Funders
If we want to see a thriving LGBTQIA* lens investing field in the Global South and East, we must resist the temptation to leap straight to investment returns. What this field needs most right now are builders — those willing to invest in infrastructure, capacity, and trust. That means supporting local intermediaries. It means funding blended finance models. It means patient capital, flexible grants, and people-centered design.
The path to justice is long, but economic empowerment lays the groundwork. Let’s build the systems that make dignity, opportunity, and investment — not the exception, but the rule — for LGBTQIA* communities and all underserved entrepreneurs.
About Stefan Bollier
Stefan is a member of Dreilinden’s investment committee. He is the founder of Swiss-based Impact Advisors LLC, which is advising Dreilinden on the development and implementation of the foundation’s impact investment strategy.
About Dreilinden
Dreilinden is a Hamburg-based foundation dedicated to advancing societal acceptance of gender and sexual diversity. Founded in 2007, Dreilinden plays a driving role in supporting people with diverse sexual orientation, gender identity and expression and sex characteristics, providing grants and investments. Kindly note that Dreilinden is not accepting any grant applications at this time.
