The state of Latinx female founders
November 1st was Latina Equal Pay Day. While I’m not the biggest fan of having a dedicated “day” to celebrate an event, I do think it’s a good opportunity to understand why it exists and what it means. As a woman of color, understanding the dynamics of how pay inequality impacts underrepresented groups is very important to me. And being a part of startups and tech, understanding the role and position of POC within this sphere is equally important.
I remember reading an article that stated between 2009 and 2017 only 0.4% of venture capital went to Latinx women. My reaction is: Yikes…how is this possible? A group called digitalundivided researched the state of Latinx female founders and shared some interesting facts. Let’s look at the numbers.
- In 2017, Of the 6791 female-founded startups that raised venture capital, less than 2% were led by LatinX women.
- In the last 10 years, Latinx female-led startups have raised $1.36 billion in capital. Compare this to $1.9 billion raised by female-founded startups in just 2017.
- From the survey over 60% of all Latinx female-led startups are located in New York and California.
- Only 17% of Latinx female founders actually participated in a top accelerator program, with Y Combinator hosting the most (nine total founders).
Just looking at these numbers, we have a long way to go. But the report also states that Latinx businesses are growing fast — with more than 87% growth between 2007 and 2012. With that said, investors need to create more pipelines for Latinx women to succeed as female founders. Once again, the female founders are there, but they’re not getting the exposure and amplification they deserve.