VWV Volumes #13: Associate Luc Espinosa '23 on Hispanic/Latinx in Venture Capital: who’s the 1%?
It’s no secret that the VC world has a diversity issue. Sure, firms love to promote their latest diversity commitments and DEI bootcamps on their website, but the numbers don’t lie: Hispanic/Latinx VC’s make up just 1% of the venture capital industry. Despite the fact that we are the largest minority group in the US, making up over 18% of the population, Latinx startups represent less than 2% of venture investments. And there’s a gender gap, too: Latina-founded companies receive just 0.4%.
As I consider a path in venture, it’s disheartening to know that I’ll be going into a career where I'll likely be the only Hispanic person at the table. On the other hand, I’m motivated to change the status-quo by pushing for more representation at the student level (check out our new Brown Latinx in Business and Leadership club!).
Luckily, there are a handful of US-based VC firms run by some badass Hispanic/Latinx teams. I’d love to highlight three below:
Led by Brown ’89 Marcos Gonzales, VamosVentures is a $25mm LA-based fund focused on investing in early-stage, tech-enabled companies led by Hispanic and other minority entrepreneurs. Vamos hopes to fund over forty Hispanic/minority-led tech companies, produce over two hundred tech jobs, and inspire more tech entrepreneurs of color. More recently, the fund received a minority investment from TPG as a part of TPG’s NEXT initiative to back diverse talent. VamosVentures’ investments include FiveRun, Paladin, and Pilotly.
Launched in early 2020, Chingona Ventures is a Chicago-based, early-stage fund hoping to invest in both diverse founders and untraditional business concepts. Chingona was founded by Samara Hernandez, a Mexican-American immigrant who was previously at MATH Venture Partners and Goldman Sachs. They are industry agnostic but have previously funded startups in food technology, future of work, financial technology, female technology and overall wellness. Chingona has made 20+ investments in their first year, including in Reel, Zero Shop, Encantos .
Mendoza Ventures is a Boston based Fintech, AI, and Cybersecurity venture capital firm that is both minority and women owned. They are among the first and only Latinx-founded venture firms on the East Coast. The fund is run by husband and wife Adrian and Senofer Mendoza, and they have invested $3.5M in six startups with artificial intelligence, blockchain, and digital wallet technology. Mendoza’s portfolio includes Alyce, GoodDog Labs, and listo!.