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An investor makes a case for funding sex, drugs and other socially tabooproducts
Christian Tooley argues at SXSW London that investors should reconsider funding socially taboo sectors like sex and drugs, as current restrictions limit innovation and financial returns. He highlights underfunded industries due to societal stigma and discusses the potential for positive impact, advocating for a shift in investment strategy by smaller funds that could capitalize on the lucrative vice market.
Key points
- Tooley questions societal prudence vs. profit at SXSW London.
- Vice clauses restrict investments in sex, drugs, and gambling due to stigma.
- He claims investors miss innovative opportunities by avoiding these sectors.
- Sex tech market projected to reach nearly $200 billion by 2032.
- Large institutional investors avoid these sectors due to legal and reputational risks.
- Notable products include Polari Labs and linq, aimed at improving sexual experiences.
- Cannabis investment is fraught with legal uncertainties.
- Tooley encourages smaller and progressive funds to explore vice investing for potential high returns.
Why it matters
- Historically, industries related to sex and substances have faced investment barriers due to social stigma.
- The rise of sex tech and cannabis industries illustrates changing perceptions since 2025 IT trends focus on societal norms evolving with technology.
- Increased focus on sexual health and wellness has opened new market opportunities, reflecting a broader change in consumer preferences and social acceptance.
Tooley's challenge to investors highlights a need for openness to funding taboo industries, emphasizing the importance of embracing innovation over adhering to outdated societal norms for greater financial and cultural returns.