Silicon Valley-based nonprofit Latino Business Action Network is launching a startup accelerator focused on expanding equitable access to funding for Latino founders in a partnership with one of the countries top banks and Stanford University.
LBAN's goal is to strengthen the U.S. economy by empowering Latino Entrepreneurship through entrepreneurship research, education, and a network of resources.
The Startup Accelerator program, in its first stage, will be backed by JPMorgan Chase. The idea is to bring together 40 Latino-founded startups with Latino-friendly capital providers (venture capitalists, bankers, and CDFIs) in order to guide them in achieving their fundraising goals while obtaining world-class industry experts' mentorship, with vast networks and experience. Additionally, Stanford professors will advise and instruct participating Latino founders through their go-to-market plan, profit model, financial statements, and startup valuation. Participants will obtain a Stanford Graduate School of Business Executive Education certificate at the end of the program.
LBAN teamed up with JPMorgan Chase as a Corporate Sponsor to Support Hispanic and Latino Entrepreneurs last February 2023. It is expected that JPMorgan Chase's patronage endorses LBAN core pillars as "Foundational research" aimed at analyzing challenges and opportunities for Latino entrepreneurship nationwide.
According to research from LBAN and Stanford University, there has been a 34% growth in the number of Latino-owned businesses in the last 12 years compared to a -7% for non-Latinos. Also, Latino-owned businesses contribute annually to the U.S. economy with $800 billion. However Latino-owned businesses receive less than 2% of the available Venture Capital funding in the U.S. and Latino-owned businesses have 60% lower odds of loan approval from national banks.
JPMorgan Chase's support commenced at LBAN's 8th annual State of Latino Entrepreneurship Summit recently held at Stanford, where JPMorgan Chase's representatives spoke on the importance of access to capital for Latino entrepreneurs and small business owners. LBAN and Stanford co hosted the summit, presented their foundational Latino entrepreneurship research, and convened panel discussions on access to capital and contracts:
"Throughout this year, JPMorgan Chase will provide in-person and virtual programming to Latino entrepreneurs including workshops on how to leverage corporate supplier diversity programs and business roundtables for Latino entrepreneurs. This collaboration is part of the ongoing efforts led by JPMorgan Chase to drive inclusive economic growth and access to close the racial wealth gap for those who have been traditionally underserved, including Black and Hispanic and Latino communities," said a LBAN.
JP Morgan Chase's participation derives from the $30 Billion Racial Equity Commitment from 2020 to help close the racial wealth gap among Black, Hispanic and Latino communities. The firm is bringing together its business, philanthropy, policy and data expertise to help close the racial wealth gap and drive inclusive growth. The five-year Commitment includes lending, equity and direct funding to help increase sustainable homeownership, expand affordable housing, grow small businesses, support diverse suppliers, improve financial health and access to banking and build a more diverse and inclusive workforce.
LBAN's Startup Accelerator 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.
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