HomeAnalysisNew Report Reveals Underrepresentation of Latino/a Professionals in Venture Capital

New Report Reveals Underrepresentation of Latino/a Professionals in Venture Capital

Venture Capital

Latino/a individuals make up less than 2 % of investors in venture firms with over $100M in assets under management, according to new research released by SomosVC, a 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 gaps in representation for Latino/a professionals in the field, given that they comprise nearly one-fifth of the total U.S. population.

The U.S. Latino economy is continuing to accelerate, with 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.

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

VCWire

26/04/2024