DIVERSITY: OC Founder Opines on Paltry Venture Funding for Latino Founders

Andrew Bermudez, the founder and CEO of Digsy, provided inter-TECH-ion with his opinion on statistics that show that Latino founders accounted for only 2.1% of all venture funding in 2021, and that Latino’s percentage of early-stage funding has decreased since 2018. This data comes from Crunchbase.

There’s also this study from consulting firm Bain & Co. that found that less than 1% of the top 500 VC and PE deals in 2020 involved a Latino founder.

Digsy is an online, one-stop venue to market commercial properties.

Here’s Bermudez’s opinion:

I am 100% Hispanic, having been born and raised in Ecuador and moving to California in 1993. I managed to lose my accent by age 22, and I believe this has contributed to my lack of being able to raise funds for our tech startup.

I invested over five years of networking with other successful entrepreneurs, VCs and angel investors before I started my company. This network made it easier to raise funds.

However, when I count how many Hispanics are in that network, it’s probably less than 0.05%. I believe we lack the volume of successful founders, VCs, angels and mentors in the Hispanic community to mentor and cheer for each other in this space.

We definitely need more representation, mentoring and networking in the Hispanic community. It’s not all up to the VCs, but for us Hispanic founders to step-up and commit to help our community move forward.

Bermudez has his hands full with his company and taking care of his first child these days, so he doesn’t have a lot of free time to be a mentor, but added… I have Hispanic startup entrepreneur friends, and others that are referred to me for help, whom I always make time to help and unofficially advise them.