Generative AI: A Window of Opportunity for Black & LatinX Founders

In the fast-paced world of innovation, staying ahead of the curve is crucial for success. As generative AI takes center stage, questions arise about the value we bring and how this technology will transform the way we build new business ventures, accelerate startups, work and invest in founders. The emergence of generative AI has sparked curiosity and raised important questions about the value individuals bring to the table.

The Power of Transformation

Reflecting on my 20-year journey in the innovation industry, I recall my humble beginnings as a 14 year old at a design studio on 34th and Park Avenue. It was a world away from the Bronx, where I grew up. From my first day, it was evident that change was constant, as Adobe Photoshop had already replaced a brilliant illustrator who rented a desk at the studio. This experience taught me three valuable lessons: If a white middle-aged man with a brilliant career finds himself without an opportunity that fate is inevitable for me, that a supportive network can be a lifeline, and that skills have an expiration date.

Now, as we fast forward to the present ChatGPT and Generative AI have brought us to an inflection point, I can’t help but contemplate their implications for Black and LatinX entrepreneurs.

A Changing Landscape of Accessibility

Historically, access to groundbreaking technologies has been transient. Over the past two decades, revolutionary innovations, ranging from smartphones to artificial intelligence, have reshaped the way we live, work, and communicate. While these breakthroughs initially increased accessibility, their growing complexity and higher costs have made them less attainable without substantial capital investment.

How long will Generative AI & ChatGPT technology be accessible?

Melissa Wither of RevUp Capital and I caught up to talk about the impact of generative AI for Black and LatinX founders over dinner. Melissa is an OG when it comes to innovative accelerator/venture models and has invested time and money with Black and LatinX founders. Drawing from our collective experience working with seed-stage founders at Techstars, Melissa posed the question how long will Generative AI & ChatGPT technology be accessible.

Unlocking Growth Potential

As the traction for generative AI continues to build, now is the time for Black and LatinX founders to seize this short window of opportunity. By capitalizing on the efficiency, speed, and automated reporting that generative AI affords, we can reduce time to market, costs, and risks. Here are some areas where this technology can be applied effectively:

• Customer Support: Improve customer experiences and streamline support processes.
• Sales & Lead Generation: Automate sales/marketing activities and optimize lead generation with more intelligent funnels.
• Knowledge Management: Efficiently organize and access vital information. Shorten learning curves across a small teams.
• HR and Employee Onboarding: Streamline hiring processes and enhance automated onboarding experiences.
• IT Support (Non-critical): Automate routine IT support tasks.
• Content Curation & Personalization: Enhance content curation and personalize user experiences.
• Data Analysis & Reporting: Automate data analysis and generate insightful reports. Shift reporting from a passive to an active agent with chat prompts.
• Project Management: Streamline project workflows and enhance collaboration.

Closing the Gap

Research reveals a disheartening reality: Black and LatinX founders often spend more time in business before securing venture funding. On average, Black founders wait approximately 36 months, while LatinX founders wait approximately 32 months before raising venture capital. Research shows that it cost at least $250,000 more for a Black founder to create the same exact business as their white peers. With the efficiency, speed, and automated reporting, Venture funds & debt capital can invest in growth because founders are more focused on:

• Drive Innovation and Product Development: Invest more time and resources in creating cutting-edge products.
• Expand Market Reach and Acquire Customers: Target new markets and enhance customer acquisition strategies.
• Scale Operations with Efficiency: Optimize scalability and streamline operational processes.
• Utilize Data-driven Insights for Decision-making: Leverage AI-powered analytics to make informed business decisions.
• Boost Investor Confidence and Risk Mitigation: Enhanced transparency and accuracy through automated systems build investor trust.

Seizing the Moment

Generative AI presents an unprecedented opportunity for Black and LatinX founders, not only in terms of operational efficiency but also in attracting investment and increasing investor confidence. However, we must acknowledge that such access points tend to be short-lived. With this technology gaining momentum, now is the opportune time for Black and LatinX founders to seize the window of opportunity and truly accelerate entrepreneurial success.

This window won’t be open for long so I’m committing my time to developing a playbook of ChatGPT and Generative AI frameworks and tools that mimic the accelerator playbook to catalyze this effort. I’ll post meaningful resources each week that will help you move your business forward faster.