Latino Business Action Network (LBAN), the Silicon Valley-based nonprofit that collaborates with Stanford University to empower Latino entrepreneurship, launched the first startup accelerator focused on expanding equitable access to funding for Latino founders. The inaugural cohort of this new program supported by JPMorgan Chase matches 40 Latino-founded startups with Latino-friendly capital providers (venture capitalists, bankers, and CDFIs) to help them meet their fundraising goals and receive mentorship from world-class industry experts with vast networks and experience. In addition, these Latino founders will be taught by Stanford professors to guide them through their go-to-market plan, profit model, financial statements, and startup valuation, culminating in a Stanford Graduate School of Business Executive Education certificate.
This comes at a time when research shows that Latino-owned startups in the U.S. over-index as owners of technology companies. Even as research shows that Latino startups grow faster and provide more jobs than white-owned business startups, yet they still receive less than 2 percent of all VC funding. “When it comes to investing, VCs assign an unfair bias towards Latinx founders, when in reality, the data proves Latino-founded companies continue to outperform their white-owned companies. By giving Latino entrepreneurs the network, resources, and access to capital that they have been traditionally closed off from, LBAN and our partners are bringing more equity into the funding landscape,” says LBAN CEO, Arturo Cazares.
In just 10 years, LBAN has successfully helped thousands of Latino entrepreneurs who faced disproportionated bias to secure funding for their startups, allowing them to scale and create over 50,000 jobs in America while contributing $7.1+ Billion to the U.S. economy. AJ DeLeon, Innovare’s CEO, and LBAN alumnus was turned down by over 100 venture funds during his seed raise in 2021 before finding support through LBAN’s network of capital providers. “During my cohort, I was introduced to VCs from the LBAN network and, as a result, raised an additional $2M in an oversubscribed round,” says AJ DeLeon.
“Investing in our communities translates into a stronger economy for all,” said Silvana Montenegro, Global Head of Advancing Hispanics & Latinos. “That’s why we are proud to expand our collaboration with LBAN to provide Latino founders who have not had equal opportunity with the access and resources they need to succeed. Supporting founders at all stages is critical to achieve sustainable change for our communities.”
JPMorgan Chase became a corporate sponsor earlier this year to support Hispanic and Latino entrepreneurs through LBAN’s core pillars of foundational research, transformational education, and empowering ecosystem. Throughout this year, JPMorgan Chase has provided a number of in-person and virtual workshops to Latino entrepreneurs on corporate supplier diversity programs and benefits of minority certification–the remaining sessions will cover business banking valuations access to credit, and more. The firm’s joined LBAN’s 8th annual State of Latino Entrepreneurship Summit where JPMorgan Chase’s representatives spoke on the importance of access to capital for Latino entrepreneurs and small business owners and the firm’s $30 billion Racial Equity Commitment. This collaboration is part of the ongoing efforts led by JPMorgan Chase to drive inclusive economic growth and access to close the wealth gap for those who have been traditionally underserved, including Black and Hispanic and Latino communities
LBAN’s Startup Accelerator is currently open for enrollment. It is accepting applications until December 2023 to fulfill its goal of supporting U.S.-based Latino founders who have already raised between $200k and $1.5 million from external sources.Startup founders can apply here.