Your inside guide on venture capital for Latinos and how investors and venture capitalists strive to help Latino-owned enterprises in the US Latino-owned businesses are reported to be very rare in the world of venture capital. According to a survey of around 1,800 enterprises, just about one percent of all Latino-owned businesses established in the United States between 2007 and 2012 received venture capital for Latinos, or angel investments. One of the reasons behind this is that very few Latino-owned businesses enter venture capital firms in the first place. According to reports, a total of 87 percent of all enterprises that had venture capital funding, were owned by white founders, with Asian-owned enterprises ranking a distant second, at 12 percent, and Black-owned enterprises representing a minuscule one percent sliver. It is no secret that Latino-owned businesses in the United States are having difficulty obtaining not only venture capital funding, but also other types of investment. According to industry experts, even after controlling for revenue growth, credit scores, industry, and profitability, Latino-owned enterprises are about 60% less likely to be approved for a loan from a national bank. According to business analysis, in order for an enterprise to scale and grow, it needs external sources of money, and for many, the mismatch between investment and performance extends far beyond the bottom line. Early-stage businesses are one critical area where Latinx funding differs from overall investment patterns. According to some data, the dollar amount received in pre-seed, seed, and angel rounds for venture-backed Latinoowned start-up enterprises has not changed since 2018, when Latino-owned companies raised those early rounds earned $180 million. In 2021, Latinx startup enterprises raised more than $200 million in angel, pre-seed, and seed rounds, which compared to earlier years, is a $20 million increase. The slow rate of change in early-stage funding for Latino founders is a serious issue with real-world ramifications. The first and most obvious effect is that when a startup enterprise is passed over for financing in its early phases, its founders are less likely to get an opportunity to prove themselves through marketing, scaling, and hiring, even if their business idea is brilliant. Lack of finance can have a serious impact on recruitment also, because top people may follow the money to their next position to prevent the chance of being out of work. Fortunately, more venture capitalists and institutional investors in the US are recognizing the issue of venture capital for Latinos. Latino and Hispanic enterprises have seized the US small business market in recent years and grabbed the attention of many venture capitalists and investors. When you put capital in the hands of a larger group of people, their networks will naturally expand, as is beginning to happen in the country. The United States is currently seeing a boom in the Latino/Hispanic small company sector, and as a result, more venture capitalists and investors have leapt on board, ready to work with Latino/Hispanic business owners. However, many of these business owners are apprehensive to work with the first venture capitalist who approaches them. Instead, and for good reason, they prefer to collaborate with Latino venture capitalists and investors. Some venture fund investors strive to increase the number of Latino professionals in venture capital, as well as help Latino entrepreneurs advance their careers and expand their network and raise the amount of money available to Latino venture investors. Venture capital for Latinos offer many benefits in the current marketplace and venture capitalists and investors understand the business landscape as well as the markets in which many Latino/Hispanic business owners provide a
service or sell their products and are more than willing than ever to help young entrepreneurs learn from their experiences.
About us L’attitude Ventures is a mission-driven venture fund that invests in early-stage Latino-led and owned businesses in the United States with substantial and high-growth potential that may be realized through technology. The company was founded in 2019 by L'ATTITUDE co-founders Sol Trujillo and Gary Acosta, as well as Kennie Blanco, to address a disturbing economic cost to our country: the underfunding of US Latino entrepreneurs. Our fund is sizable, and it will stimulate a significant number of Latino entrepreneurs from the Seed to Series A stages, with significant investor round participation; initial check sizes range from $200,000 to $1,500,000. We also act as a trustworthy intermediary, bringing cash from investors of all stages and types together to support the success of Latino entrepreneurs today and in the future. Please visit our website at https://lat.vc/ for more information.