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Latinx women received 0.4% of $400 billion in venture capital funding between 2009 and 2017, and only 58 LatinX women have ever raised over $1 million in venture funding, according to a <a href="http://projectdiane.digitalundivided.com/latinx/">new report</a>.<div class="paywall-selector"></div><div class="paywall">
An organization that supports black and Latinx women in entrepreneurship called <a href="https://www.digitalundivided.com/">digitalundivided</a> surveyed and researched Latinx female founders for its second report under the banner ProjectDiane. In 2016, the group released a report on the <a href="http://projectdiane.digitalundivided.com/">state of black women founders</a>.
Of 6,791 women-founded startups that had received venture funding, less than 2% in 2017 were led by a Latinx woman, the report found. In 2017, women-led startups in total raised $1.9 billion in capital. For comparison, Latinx women have raised less than that—$1.36 billion—in the last decade.
&#8220;It wasn&#8217;t surprising to us,&#8221; said digitalundivided founder and CEO Kathryn Finney. &#8220;We knew it wasn&#8217;t going to be that much different for Latinas&#8221; compared to the organization&#8217;s report on black women founders two years ago.
The report reviewed 8,000 U.S.-based startups to identify companies that might be led by Latinx women. Researchers then contacted those founders to ask if they identified as Latinx (the gender-neutral term for Latino or Latina).
Startups led by Latinx women are rarer than companies founded by black women, at 107 identified in this report compared to black women founders&#8217; 227. ProjectDiane also found that Latinx-founded startups have higher failure rates, but couldn&#8217;t identify the cause.
And only 17% of Latinx female founders participated in a top startup accelerator—Y Combinator hosted the most, at nine total founders.
The report included some outliers, like Jessica Alba&#8217;s Honest Company.
It also included this interesting finding: On average, Latinx founders with at least $1 million in funding raised 36% more if they were based in New York versus California. It also discovered, based on anecdotal evidence, that many Latinx founders came from families of entrepreneurs.
&#8220;Many come from families who were entrepreneurs because they had to be, because of language barriers and racism,&#8221; Finney said. &#8220;In order for their parents and grandparents to make money, they had to create their own businesses.&#8221;
The good news is that companies owned by Latinx women are growing incredibly fast—at 87% growth between 2007 and 2012. This report encourages investors to avoid biased pattern matching, looking for founders who resemble past successful founders they&#8217;ve seen and to build more pipelines for Latinx women to succeed as founders.</div>

LatinX female founders received only 0.4% of venture capital funding between 2009 and 2017, ProjectDiane and digitalundivided found.

Latinx Female Founders Receive Only 0.4% of Venture Capital Funding

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Only 58 Latinx women have ever raised over $1 million in venture funding.

Latinx Female Founders Receive Only 0.4% of Venture Capital Funding | Fortune

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