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Startup Economy Wealth Generation

Transforming communities through enhanced opportunities for wealth creation.

Purpose

Latinx households boast only 1/20th of the median wealth of a non-BIPOC household. And while there are many reasons, they’re all systemic, which is daunting until you realize that systems can be changed. HIP’s Start Economy Wealth Generation is all about changing the systems that keep Latinx Founders from attracting investment capital, keep Latinx managers from sourcing deals and directing investments, and in both cases, keep our communities locked out of the startup economy. Indeed, <2% of venture capital goes to Latinx enterprises, and research shows that this kind of funding is the most dramatic accelerator in the economy. Stated plainly, if Latinx startups can’t get equal access to equity investments, they will not be able to test, fail, launch, and scale in a way which has made the heart of the economic growth and vibrancy for the last half-century.

With reliance on pattern matching and dependence on non-diverse mainstream venture pipelines, the startup ecosystem continues to lock out Latinx founders from access to capital, resources and expertise. Talented Latinx founders, therefore, remain undiscovered and undervalued.

To decrease the wealth gap, we are taking direct aim at increasing the Latinx participation rate in the startup economy by building and growing programs that overcome these systemic challenges and enable current Latinx startup leaders to access capital and resources, showcase our exceptional founder talent pipeline, develop the next generation of investors of color and create bridges between Latinx and mainstream startup ecosystems.

Overview

Complex problems require creative solutions. Leveraging Hispanic in Philanthropy’s 39 years of Latinx expertise and grassroots relationships, we have launched three unique interconnected programs: Inicio Ventures, LATINX Launchpad and Impact Venture Fellows. National in scope, our portfolio of work is helping shape the new startup economy by discovering, supporting and amplifying Latinx founders and their startups.

Value Proposition

Program: Inicio Ventures
Approach: Founder-first early stage fund investing in latinx-led startups. Agnostic to sector or region, we are often the first institutional funder for first time founders. We’ve developed new vetting and investing tools and processes that give credit for all the life and work experiences of entrepreneurs, measure the wealth generating potential of a startup and encourage startups to develop DEI talent strategies.

Program: LATINX Launchpad
Approach: A high-energy pitch competition series showcasing Latinx founders. Finalists and awardees receive pitch coaching, opportunities for grant-based prizes and post-event amplification. This pipeline development program is a bridge between Latinx entrepreneurs and the mainstream startup ecosystem. Often in partnerships, each event varies by region, sector and/or demographic overlay.

Program: Latinx Impact Venture Fellows
Approach: As research has demonstrated, increasing diversity at the investor level encourages investment in diverse-led startups. We are developing the next generation of diverse investors through our paid internship program for current grad students. Over 10-weeks, our cohorts develop skills, relationships and knowledge in order to become future diversity-fluent investors.

Program Successes

Inicio Ventures Initiative

The Inicio Ventures initiative has supported over 20 Latinx founders whose startups cumulatively represent ~$1.5B in potential Latinx Wealth Generation and ~2,000 potential Latinx jobs.

Latinx Impact Venture Fellows

Launched in the Fall of 2021, the Latinx Impact Venture Fellows program hosted a successful inaugural cohort of 4 graduate-level students for an investor leadership development program. The program is expanding to host 2 more cohorts, double the size in 2022.

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