Apr 25, 2024 - World

Latino-led venture capital firms helped create more than 50,000 jobs

Illustration of stars, dollar signs and exclamation points flying out of an open briefcase.

Illustration: Shoshana Gordon/Axios

Investments from Latino and Latina-led venture capital firms contributed to the creation of an estimated 51,600 jobs last year, according to a new report.

Why it matters: These gains come even as Latinos and other people of color remain deeply underrepresented in the VC world.

  • Last year, Latinos and Latinas represented 1.6% of all investment professionals in larger U.S. firms, or those managing more than $100 million in assets, according to the new report from SomosVC, a nonprofit pushing for greater representation.
  • Out of more than 560 large firms analyzed in the report, only 26 employ more than one Latino or Latina investor.

What they're saying: The job creation estimate speaks to the Latino community's impact despite its low VC representation, says Mariela Salas, the executive director of SomosVC.

  • Latinos are blazing trails, she says, because diverse investors are more likely to support founders and start-ups from underrepresented communities.
  • "Part of our community's entrepreneurial spirit comes from having a different lens, making us open to exploring paths and exploring opportunities that would otherwise be overlooked," Salas says.

What we're watching: Groups like SomosVC and Latinas in Tech have fellowships to increase representation in the tech industry and mentorships to foster retention.

  • "Ultimately what we want to do is increase the assets under management for everyone," Salas says, referring to hopes of making the 1.6% figure grow.
  • Latinas in Tech will hold a summit next month, with workshops and networking events as well as $60,000 in prizes for Latina-led startups.

Subscribe to Axios Latino to get vital news about Latinos and Latin America, delivered to your inbox on Tuesdays and Thursdays.

Go deeper