Two women talking A woman on a laptop

The State of Latinx Women Founders

ProjectDiane2018

ProjectDiane 2018: Latinx is a demographic study authored by digitalundivided that provides a snapshot of the state of Latinx Women Founders, and the startups they lead, in the United States.

ProjectDiane2018: Latinx is supported by:


JP Morgan Chase logo
Separator line

SCROLL DOWN FOR MORE

Where are the Latinx Women Founders?

Over 60% of all Latinx Women-led startups in ProjectDiane are located in two states: California and New York

Learn more about where Latinx Women founders are located by making a selection from the dropdown below and interacting with the map.

Help us make sure all Latinx women led startups are counted. Submit a Company for inclusion.


Latinx-owned businesses are growing at a fast pace...

– To the tune of more than 87 percent growth between 2007 and 2012. Yet the percentage of Latinx women-led startups is far less than the percentage of Latinx women in the U.S.

In 2017, there were...

6,791

funded startups led by at least one woman founder.

Of these startups...

< 2%

were led by Latinx women

although Latinx women make up 17.6% of the U.S. women’s population


digitalundivided watermark

But we’ve got a long way to go to ensure these companies are funded

For the past 10 years, Latinx women-led startups have raised $1.36 billion in venture/angel funding, with a significant portion of that raised in 2017. This represents 0.32% of the $424.7 billion in total tech venture funding raised since 2009.



digitalundivided watermark

El Club del Millón de Dólares (The Million Dollar Club) is well and thriving...

The $1MM Club is composed of Latinx women who've raised over $1MM in outside venture funding. $1MM was chosen as a goal because the median seed round raised by companies is approximately $600,000, so $1MM raised would indicate the startup has been able to raise additional funding after their seed round. Raising additional funding after the initial significant seed investment usually requires the startups to show some progress in business development.

Number Who Raised Over $1MM in Venture Funding

A chart

Latinx women

2010: 3

3 dots

2017: 58

58 dots

digitalundivided watermark

Latinx Women Founders are Well-Educated

Over 88% of the founders in ProjectDiane2018 have a bachelor’s degree and 49.5% have a Master’s or a PhD. Over 80% of founders are non-Ivy League grads at the BA level. Interestingly, no Hispanic Serving Institutions (HSI) were listed as a top producer of Latinx women startup founders.

Universities with the Highest Number of Latinx Women Founders

Rank Undergrad Total # of Startups with a Latinx Woman Founder
Tied for 1 University of California, Los Angeles
Massachusetts Institute of Technology
3
Tied for 3 Yale University
Wellesley College
University of Florida
University of California, Berkeley
Stanford University
New York University
DePaul University
Cornell University
2
Rank Grad Total # of Startups with a Latinx Woman Founder
1 Stanford University 7
2 Massachusetts Institute of Technology 3
Tied for 3 University of California, San Diego
University of California, Los Angeles
Harvard University
2

digitalundivided watermark

Latinx Women Founders with STEM Background Raise More

Latinx women entrepreneurs with STEM-related undergraduate or graduate degrees were able to raise on average nearly three times as much as those with STEM degrees. Furthermore, prior work experience at a major tech company is often a factor used by investors in assessing a startup. Yet, only 41.4% of the Latinx women who’ve raised over $1MM–and less than half (40%) of all the Latinx women founders in ProjectDiane 2018– worked for a tech company.

Average Amount of Funding Raised by STEM vs Non STEM Degree

BA Degree Type Ave. Funding Raised # of Companies
Did not indicate degree $15,071,905 21
Non-STEM $7,694,667 60
STEM $22,376,923 26

digitalundivided watermark

How to Use ProjectDiane2018 to Impact Change

Numbers don’t lie. Here are a few suggestions for ways to use ProjectDiane to inspire and impact the future of entrepreneurship for Black and Latinx founders.

1. If you’re not a founder, consider starting your own entrepreneurial journey. Learn more about digitalundivided’s programming, by visiting us at digitalundivided.

2. If you’re a founder, stand up and be counted. ProjectDiane is an ongoing data initiative that helps informs global and national policy for entrepreneurs of color. Make sure you’re counted by adding yourself to our database.

3. Founder or not, support the startup ecosystem. Become an investor. Mentor a founder. Sponsor a founder. Attend startup events in your area. Underwrite programs and research.

There are endless ways to support a startup ecosystem near you and the inclusive entrepreneurship movement in general. For more ideas, connect with digitalundivided on Facebook and/or Twitter and check out digitalundivided.

Methodology

ProjectDiane: Latinx is a demographic study that provides a snapshot of the current landscape for Latinx Women in the innovation space. ProjectDiane2018 covers the two year time period of November 2015- November 2017. A team of 10 data collectors reviewed over 8,000 U.S.-based startups and companies located in the Crunchbase, Pitchbook and Mattermark databases as well used updated data from the ProjectDiane2016 database. digitalundivided also reached out to top organizations working with Black and Latinx entrepreneurs and startups via email, social media, and word of mouth and employed an online survey to collect additional data. Once a startup was entered into the database it went through a verification process, and for those indicating raising over $250,000 in outside funding, digitalundivided conducted additional verifications process including written confirmation from investors, clips/links from major press coverage, and letters from legal representation.


About digitalundivided

digitalundivided (DID), a hybrid social enterprise founded in 2013, takes an innovative approach to community-level economic empowerment by encouraging high potential Black and Latinx women (BLWE) to own their economic security through entrepreneurship and technology. digitalundivided has demonstrated core competencies in building and scaling successful data-driven programs that remove barriers and create a pathway for women of color into innovation entrepreneurship and has served as a singular force in moving the needle on inclusion in the innovation economy as a whole.

To learn more about the digitalundivided mission, visit here.

Want more insights on the state of Latinx women in tech entrepreneurship in the United States?

© 2018 digitalundivided | All Rights Reserved.

Back to top arrow