Considering Latinos in Venture Capital
With a view towards increasing diversity in venture capital, let us take a look at the Latino community.
Latinos are now the largest minority group in the nation and are currently driving US population growth and whose numbers in 2020 have reached 62.1 million, an increase of 23% over the previous decade.
And Latinos are projected to rise to 132.8 million people or 30.2% of the total U.S. population and the Latino population is growing 6 times faster than non-Latinos
Currently, the total economic output (GDP) of U.S. Latinos was $2.6 trillion in 2018 and at over $1.7 trillion, U.S. Latino purchasing power is growing 70% faster than non-Latinos.
If U.S. Latinos were a stand-alone country, they would account for the 8th largest GDP in the world larger than the GDPs of Italy, Brazil, or South Korea.
And according to a recent report (Cite: from Bain & Company), 50 percent of all net new small businesses created in the U.S. from 2007 to 2017 were Latino-owned. Yet during the same period, only 1 percent of the investments from the top 25 venture capital and private equity firms were from a Latino-owned business.
Clearly, the U.S. investment community has not yet recognized the potential of these Latino-owned businesses.
