SomosVC’s comprehensive analysis into the current landscape of Latino/a VC professionals underscores the pressing need for new approaches to build a more inclusive industry
SAN FRANCISCO, April 25, 2024 — Latino/a individuals make up less than 2 percent of investors in venture firms with over $100 million in assets under management, according to new research released today by SomosVC, a trailblazing nonprofit dedicated to advancing Latino/a representation in venture capital. Issued as part of the annual “State of Latino/a VCs” report, the findings highlight the significant gaps in representation for Latino/a professionals in the field, given that they comprise nearly one-fifth of the total U.S. population.
“Latino/a talent remains significantly untapped, and when given the opportunity, Latino/a investors and fund managers can have an immense positive impact on both the economy and the tech ecosystem,” said Mariela Salas, executive director of SomosVC. “It is time to take decisive steps towards equitable representation and make the most of a tremendous opportunity. To unlock the full potential of Latino/a talent in venture capital is to fuel the engines of innovation and growth across the nation.”
The U.S. Latino economy is continuing to accelerate, with significant contributions as both consumers and producers, growing to the world’s 5th largest GDP if considered independently. Despite this overall growth, the VC industry still shows considerable underrepresentation among Latino/a investors — compounded by the fact that the broader venture funding landscape has reached a 6-year low.
“As a country, we need to adopt educational, workforce, and new venture capital allocation policies that significantly invest in the fastest-growing, youngest cohort of innovators,” said Lili Gangas, chief technology community officer of Kapor Center. “The overall innovation economy lacks the voice and vision of the Latino/a community to share a more responsible tech-enabled future. It is imperative to support organizations like SomosVC to not only train the next generation of Latino/a VC professionals, but also help leadership advancement of VC partners at firms of all stages are vital for prosperity that impacts us all.”
Among the key findings of the report include:
- 79% of venture funds over $100 in AUM have no Latino/a investment professionals at all.
- Gender disparity also persists in the field, with only 24% of Partner-level Latino/as in emerging funds being women.
- Latino/a led firms are more likely to invest in diverse founders – 48% of portfolio company founders identify as underrepresented people of color.
- Latino/a-led firms in the SomosVC community have played a pivotal role in job creation, with investments leading to an estimated 51,612 new jobs.
To download the report, please visit: https://www.somos.vc/resources/2023-annual-report
About SomosVC:
SomosVC is a 501(c)(3) non-profit organization focused on unlocking opportunities for Latino/a VC investors, developing a community that leaves a lasting impact on the venture capital ecosystem. Our mission is simple: to accelerate and elevate the presence of Latinos/as in venture capital. We believe that when venture investors are empowered to show up as their authentic selves, the flow of capital from limited partners to venture capitalists and ultimately to startup founders becomes more diversified, impactful, and representative of U.S. demographics. For additional information, visit https://www.somos.vc.
SOURCE SomosVC
