Beyond the rainbow

1 min read · June 28, 2025
New Power Labs

In Canada, 2SLGBTQIA+ entrepreneurs own over 100,000 businesses. Together, they generate more than $22 billion in economic activity and employ more than 435,000 Canadians – a workforce roughly the size of Halifax. 

The Canadian 2SLGBTQIA+ is a young and highly educated population, compared to other demographic groups, with growing economic potential and buying power. 

In 2024, U.S. data shows 2SLGBTQIA+ founders secured just 0.5% of venture capital funding, despite representing 7.6% of the population. We don’t have Canadian data, but if our country mirrors this, it’s a stark mismatch for a community making up 4.4% of the population. In philanthropy, of the $9.9B gifted by Canadian foundations in 2021, only $2.9M or just 0.03%, supported 2SLGBTQIA+ issues. We don’t have data for funding towards 2SLGBTQIA+-led nonprofits and organizations. 

This Pride Month, as corporations pull back from rainbow branding, we are reminded that visibility can create the illusion of progress. 

This retreat from surface-level allyship may offer a turning point: a moment to move beyond rainbow-washing and commit to sustained, coordinated investment in inclusive economic prosperity.

In a 2023 conversation with New Power Labs, Ezra Nepon, Deputy Director of the Global Philanthropy Project, used the metaphor of “shimmering,” when hundreds of bees move in coordination to repel predators. Funders committed to closing the gap for 2SLGBTQIA+ leaders and community must take the same approach: act together, strategically, and boldly across issue areas and geographies.

2SLGBTQIA+ leaders are already building businesses, jobs, and innovation. The only question is whether capital and funding systems will catch up or continue to overlook this vibrant, growing force in Canada’s economy.

Narinder

New Power Labs

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