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Institutional Investor

When investors overlook Latinx founders, they miss out on a $1.4 trillion opportunity

When investors overlook Latinx founders, they miss out on a $1.4 trillion opportunity

Latinx-owned businesses are growing faster than their peers despite significantly less access to capital. So why aren’t investors taking advantage?

  • octubre 13, 2021
  • min read

Institutional Investor

When investors overlook Latinx founders, they miss out on a $1.4 trillion opportunity

According to a recent report from Bain & Company, a management consulting firm, 50 percent of all net new small businesses created in the U.S. from 2007 to 2017 were Latinx-owned. Yet during the same period, only 1 percent of the investments from the top 25 venture capital and private equity firms were in Latinx-owned businesses.  

“Clearly there’s a big opportunity there: Latino-owned businesses are growing faster, according to our data, than white-owned businesses, and they have better risk profiles,” Tevia Segovia, a partner at Bain and an author of the report, told Institutional Investor

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