For Latinos Gaining Access to Capital is Like Climbing Mount Everest

Capital is a critical resource for accelerating ideas and keeping entrepreneurs on the path to changing the world. However, a recent study highlights significant discrimination in the land of plenty. 

Conducted by business school professors at Utah State University, Brigham Young University and Rutgers University, the study featured nine businessmen—three white, three black, and three Hispanic. Similar in size and stature, donning the same outfits, and armed with similar education levels and financial profiles, they visited numerous banks seeking a roughly $60,000 loan to expand the very same business.

The Hispanic and black business owners were provided far less information about loan terms, offered less application help by loan officers, less frequently handed a business card, and asked more questions about their personal finances. (Washington Post)

Despite the fact that Latinos make up the fastest growing entrepreneurial segment in the U.S., these barriers in financing prove as a stark reminder of the need to amplify awareness around the real challenges that exist for minority entrepreneurs.

In an arena where only 1-2% of VC money finds its way to African American and Latino entrepreneurs, there is still plenty of work to do and kudos to those who are raising the flag of awareness.

Latino Startup Alliance to Host 1st Annual Innovator Summit in San Francisco

The Latino Startup Alliance, created to encourage the inspiration and cultivation of U.S. Latino led technology startup ventures by providing a strong support network of fellow entrepreneurs, investors, innovators, & mentors, is hosting their 1st annual Innovator Summit at the Mission Bay Conference Center in San Francisco.

About the LSA Innovator Summit
The 1st Annual summit in San Francisco that brings together Latino tech entrepreneurs for two days of startup pitches, keynotes, lighting talks, workshops, networking, and the fostering of both partnerships & friendships to help support Latino startups globally.

The LSA Innovator Summit will focus on three principals: Access, Acceleration, and Awareness. This summit will be the catalyst in providing a platform for startups, entrepreneurs, investors, and partners to connect and take action.

The Latino Startup Alliance is holding an open invitation where startups can apply to pitch at the upcoming Innovator Summit.

With a robust set of partners like the Kauffman Foundation, Latinas Think BIG, Lean Startup Circle, and many others, the LSA Innovator Summit is a landmark event playing front and center in today's "Latino Tech Moment."

Registration: http://summit.latinostartupalliance.org/#!/register

Where are all the Latino Startups?

We are excited to announce a special segment on Vista Hispano focused on shedding some light on the state of Latino entrepreneurship. Joining us is Mark Clayton Hand, an MBA from Oxford University and a cofounder of the SBS Seed Fund, a student-run startup fund within Oxford's Saïd Business School. Mark brings a unique set of investment perspective to the table and is focused on helping to illuminate the dynamics around the current state of affairs that is the exciting state of Latino startups. A huge shout out to Mark for joining Vista Hispano.

Where are all the Latino startups? By Mark C. Hand

The US Hispanic consumer market is big. Really big. $1.3-trillion-dollars-and-counting big. Major corporations like Best Buy, Yahoo, and The Home Depot are paying attention and have piled in, attempting with varying degrees of success to capture a piece of this large and growing market.

Over the course of the last six months, my colleagues and I have researched the Hispanic market with a specific hypothesis: Given its potential, surely there are dozens of startups launching clever, scalable businesses serving Hispanic consumers. As it turns out, we were (mostly) wrong.

Over a series of posts on Vista Hispano, I’ll discuss three elements of the Latino startup ecosystem: What barriers are blocking the creation of a Latino startup market? What startups are already plowing through those barriers? Where do they find the capital they need to start their business?

First, let’s clear up a bit of confusion about what we mean by Latino startups. When people say Latino startups, they mean one of two things: either startups operated by Latinos, or startups serving the Latino market. And when they say Latino startups, they mean either small companies with huge growth potential, or small businesses. The result is a conversation about four different types of companies, often all in the same conversation.

The vast majority of businesses in the US fit into the bottom half of this matrix. Venture capitalists sometimes derisively refer to these small businesses as “lifestyle” businesses. But they are the blood pumping through the American economy, and Hispanics start such small businesses at a faster clip than non-Hispanics.

These companies are very different than the high-growth entrepreneurs on the hunt for venture capital or private equity investment--the companies we're interested in here. Some of those companies, such as Marc Barros’ Contour, are Latino-owned but not Latino market-focused. Others, like pre-paid phone provider MetroPCS, find success by reaching out directly to Latino customers; but they are not Latino-owned. A handful of companies, such as Alicia Morga’s previous company Consorte Media, are both Latino-owned and Latino-focused.

Why do these distinctions matter? Because each type of business faces unique challenges, taps different sources of capital, hires a different type of employee, and demands a different set of skills. If we want to build a Latino startup ecosystem, driving resources to the entrepreneurs who create value and wealth in the Hispanic community, clarity of conversation is key.

In our next post, we'll take a look at some of the challenges--both real and imagined--faced by Latino startups.

--

Mark Hand (@markchand) is an MBA from Oxford University and a cofounder of the SBS Seed Fund, a student-run startup fund within Oxford's Saïd Business School. He spent two years with Gray Ghost Ventures investing in early-stage companies in the US and India. Mark is currently researching startups and investors in the US Hispanic market.

Crowdismo Unveils Pioneering Platform Aimed at Launching Innovative Ideas Throughout the Latino Community

Crowdismo Powering Latino Genius Everywhere via Crowdfunding 

Crowdismo Launches Pioneering Platform Aimed at Launching Innovative Ideas Throughout the Latino Community

The Heartful Giving Project, Crowdismo's first crowdfunding campaign. 

SANTA BARBARA, CA - June 18, 2013 - Crowdismo, an online crowdfunding platform, today announced the launch of a new online website aimed at helping the Latino community activate creative and innovative ideas.

Maintaining an overall positive outlook on the economy and future of America, Latinos are champions of possibility and agents of change placing a priority on collective impact. Crowdfunding is a mechanism of activation allowing today’s tinkerers and inspired inventors an opportunity to launch fresh ideas of global relevance.

Recent data outlines a Latino audience that starts businesses two to three times the rate of non- Latinos. However, access to capital and traditional barriers in the financing sector comprise a serious threat to creativity, invention, and entrepreneurship. Crowdismo hopes to change that by offering a unique bilingual and bicultural online destination.

“It’s imperative that we foster a community of synergy and build both intellectual and financial capital driven by access to powerful economic resources that will enable continued momentum throughout the Latinosphere in the U.S.,” said Jose Huitron, Co-Founder of Crowdismo. “Crowdfunding levels the playing field in an arena where only 1% of VC money goes to African Americans and Latinos.”

On the cusp of a unique opportunity to take idea investment and new venture priority to another level, Crowdismo is aimed at leading the charge in innovation funding, idea powering, and community impact. Crowdismo eliminates barriers to entry by providing a mechanism for collective financing via the collaborative web.

Crowdismo is founded by two individuals with similarly identifying characteristics but diverse and dynamic talents. Together, Jose Huitron and Jose Guevarra comprise a powerful duo combining a robust technology skill-base and integrated marketing communications prowess.

Crowdismo’s mission is to power bold ideas throughout the Latino community across the arenas of culture, education, social impact, entrepreneurship, music, design, technology, and creativity.

Leading the pack of unique purpose-driven Crowdismo campaigns, is the Heartful Giving Project, a crowdfunding project aimed at supporting international folk art by providing a community arts center where local artisans can practice and teach their skills in Sua, Ecuador.

“The Heartful Giving Project is an example of the type of creative and globally relevant projects that we hope to activate and serves as a landmark of hope and possibility.” said Jose Guevarra, Co-Founder of Crowdismo.

ABOUT CROWDISMO
Crowdismo is a disruptive online platform aimed at powering creativity and innovation within the Latino community via modern collective financing known as crowdfunding. As a fresh destination for launching bold ideas, Crowdismo allows individuals to join a groundswell of people driven by inspired genius and help power projects in the areas of education, entrepreneurship, social impact, music, film, technology, and more. For more information, visit http://www.crowdismo.com

Contact:
Jose Huitron 

info@crowdismo.com 805.214.8281

###

NORTEC Collective and Interesante.com Composing New Technology Tune.

NORTEC collective and Interesante.com composing new technology tune.

Mexico is experiencing an economic renaissance. The country's explosive growth has fueled a new wave of technology startups that are betting on the Mexican market. Interesante.com is one that has been able to fuse culture and technology into a service that allows users to publish, share and discover millions of interests in Spanish and English.

Interesante users are a highly mobile crowd. To support this, we are regularly releasing improved versions of Interesante for iPhone and Interesante for mobile web. Our users can explore different categories, create collections and get recommendations.

Colors, sounds, location, content and type, play a crucial role in the recommendations we serve users and our highly sophisticated algorithms are making this happen. The algorithms work diligently in the background and simplify the user’s actions.  We show our users the best content as fast as we possibly can.

Discovering new musical tastes through video

NORTEC Collective, a collective of avant-garde artists in electronic music lead by Ramón Amezcua (Bostich) and Pepe Mogt (Fussible) and twice Grammy nominated artists, are now part of the group of advisors to Interesante. NORTEC collective provides the artistic point of view and opens the doors for up and coming artists to be a crucial part of the discovery engines of the future, where the crowd discovers the hidden gems in platforms like Interesante. Video is key in the discovery of new artists and music and we are committed to taking video discovery to a new level. Interesante has integrated YouTube’s API, enabling video content recommendations

NORTEC and Interesante are working to understand the needs of musicians and solve the problem of how to be discovered among a sea of noise.  Interesante wants to let artists and musicians find their core audience and increase the initial engagement by bringing their music directly to them.

Interesante, Inc.
Menlo Park, CA
(650)-799-1592
prensa@interesante.com

Crowdismo: Fueling Innovation and Creativity in the Latino Community through Crowdfunding

If the U.S. Hispanic market were a nation, it would boast one of the largest economies in the world with spending power of $1.2 trillion. The realities of today's Hispanic market are that of opportunity, motivation, aspiration, altruism, and hustle. The power and influence of the U.S. Latino collective is undeniable. Many awesome individuals and organizations from the West Coast to the East Coast are launching new ideas, connecting communities, and genuinely shaking the status quo. How can we build upon this momentum and continue to fuel innovative ideas and new opportunities throughout the U.S. Latino market? Enter Crowdismo. (Disclaimer: I'm a co-founder of Crowdismo and believer in bold possibility.)

Crowdismo is a disruptive platform aimed at powering creativity and innovation within the Latino community through crowdfunding. A digital destination and site for individuals to join a groundswell of people driven by inspired genius and help power the prolific. Our goal is to eliminate barriers to entry for gente with bold ideas. By tapping into the power of the crowd, Crowdismo connects you to awesome possibilities in the form of funding.

How it works:

1. Pitch your project to an online community of early adopters and believers.
2. Incentivize backers to pledge to your project with unique rewards.
3. Hit project’s funding goal and get one step closer to activating the incredible.

Age Factor
Overall, those between the ages of 25 and 34 are most likely to make investment decisions via crowdfunding platforms. The median age of Latinos is 27.6 making them the youngest demographic in the U.S. and perfectly aligned to adopt crowdfunding as a means of powering projects across a wide array of arenas including: Education, Technology, Social Impact, and Entrepreneurship to name a few.

Explosive Growth
"...the unassailable fact is that Latino-owned businesses in the United States are growing at a blistering pace." Latinos are three-times more likely to start businesses than the general population. Nielsen's State of the Hispanic Consumer report offers additional insights into the reach and growth of Latinos in America.

Philanthropic
Looking at Experian Simmons data, we know 47% of U.S. Hispanics donated to a charity or philanthropic organization in the last 12 months (Experian Simmons, Fall 2011 NHCS Adult Survey).

According to a recent post in Forbes online, "Sixty-nine percent of Hispanic respondents ranked “help people who are in need” as No. 5 on their list of aspirations compared to only 27% of non-Hispanics, who ranked this at No. 14. They want to make a difference, and if you can facilitate that, you can endear your brand to these consumers."

It's imperative that we foster a community of synergy and build both intellectual and financial capital driven by access to powerful economic resources that will enable continued momentum throughout the Latinosphere in the U.S. Crowdfunding levels the playing field in an arena where only 1% of VC money goes to African Americans and Latinos.

We're on the cusp of a unique opportunity to take investment and new venture priority to another level and Crowdismo is targeted at leading the charge in innovation funding, idea powering, and community impact.

Crowdismo coming soon 2013! Sign up for early access. Or join Crowdismo on Facebook.

Did We Miss the Biggest Disruption Facing Today's Hispanic Marketing Agencies

According to Wikipedia, disruption can be defined as "an event which causes an unplanned, negative deviation from the expected delivery... according to the organization’s objectives." Disruption is a shift from the norm and a journey in exploration where the destination is often comprised of increased creativity, efficiency, and profitable growth.

There are many disruptions taking shape all around us from crowdfunding to open education and 3D printing. These trends and new technologies are making a pretty big splash. The Hispanic marketing arena faces its own pivots of innovation where questions arise as to who should handle the navigation. The debate surrounding general-market vs niche Hispanic shops is just one example. And now another chapter is unfolding as the result of a recent event in which Univision announced the launch of their own agency.

"Univision Communications, the leading media company serving Hispanic America, today announced the formation of the Univision Agency. Overseeing a media inventory of more than $500 million across all of Univision’s broadcast, cable and radio properties, the Univision Agency will be responsible for all cross-channel promotions as well as research and creative services for clients and internal divisions."

What does this mean for existing Hispanic marketing agencies? José Villa, principal at Sensis, wrote an excellent blog post providing some insight into just how this announcement might impact the industry. There's no denying that this announcement has some pretty big ramifications for those involved with Univision but the real disruption lies in recognizing what just took place. A media company just became an agency or rather added an agency element to its repertoire of an already stout position as a leader in Hispanic engagement.

The time for agencies to disrupt themselves is now. How can we compete with the likes of these huge media holding companies? The answer lies in our ability and willingness to transform into a nimble, responsive, innovative, and forward-thinking enterprise where the words crowdsourcing, lean canvas, and trailblazer to name a few actually become second nature. Es posible.

Latino Startups to Watch in 2013

"Create a prototype and get it to market as soon as you can. Ignore the naysayers. Revise fast." - Guy Kawasaki, Author of The Art of the Start.

Perhaps it's this kind of a mindset that has led to a rising surge in entrepreneurship activity among Latinos. Hispanic entrepreneurs opened twice as many businesses as the national average in the 2000s, according to U.S. Census data. What's even more exciting is a trend where Latin American-born entrepreneurs, a previously invisible cohort, are beginning to make their presence known in Silicon Valley. Bet you didn't know that the co-founder of Instagram, Mike Krieger, is Brazilian. But where is the rest of the startup collective and what problems are they trying to solve?

To no surprise, Latino startups are rising in number and influence. Part of this explosive growth is fueled by Latinas who are vital to startup success. In fact, there are numerous success stories of Latinas who are making some big strides in entrepreneurship activity and blurring the lines of gender difference building huge momentum. And we love it.

Following are a few Latino(a) startups of note that we feel are sure to continue the upward trend in entrepreneurship activity in 2013 and fuel real impact across a multitude of industry verticals.

Parranda.org

A new online/offline community opened its virtual doors this morning with an invitation to all Puerto Ricans to help remap "The Greater Puerto Rico." Parranda.org -- which takes its name from the popular Puerto Rican Winter holiday pastime -- aims to "remap, remake, and remobilize the Greater Puerto Rico" through a series of coordinated efforts involving both people on the island and people in the Puerto Rican diaspora (i.e., people who have moved to the mainland US and other countries). The first focus for Parranda.org is a global project where the community will draw an interactive map of where Puerto Ricans live today. A first look at this map will be published in January.

Dubalu

Dubalu (Pronounced DOO-bah-loo) is the world’s first Social Network Marketing Site—a unique, exciting and valuable new concept in networking that combines the most popular features and benefits of the Internet’s top-ranked social and marketing destinations in one. What's interesting about this site is the fact that they've amassed a huge social media following in a matter of months. It will be exciting to see if Dubalu can capitalize on a subscription based model fueled by the power of social media.

StudentMentor.org

An innovative national mentoring program based on a pioneering technology platform where college students can conveniently find and collaborate with mentors from diverse industries and professions to achieve their academic and career goals. StudentMentor.org has amassed an audience of students from 1,000+ colleges and counting including a network professionals from all industries contributing 40,000+ years of experience is part of the reason the site has been able to partner with none other than the White House.


Latino Startup Alliance

Based out of San Francisco, the Latino Startup Alliance is leading the charge in new ideas. The mission of the LSA is to encourage the inspiration and cultivation of Latino led technology startup ventures by providing a strong support network of fellow Latino entrepreneurs, investors, innovators, and business owners. A hub of startup activity and leadership sure to thrive in 2013 and increase the amount of Latino led technology innovation not only in Silicon Valley but across the United States.

The breadth of Latino startup activity is fuel for the visionary and a symbol of opportunity. If you have an idea, forget about fear and move fast because the crowd is waiting, watching, and looking for opportunities to fuel innovation and power genius throughout the U.S. Here's to continued momentum and positive iteration in 2013!

The Muy Interesante Future of Latino Entrepreneurship

There's no denying it, minority entrepreneurship matters in the United States. And for the budding Latino business entrepreneur, embracing technology and social media is invaluable. When it comes to the future of Latino entrepreneurship, why not start them young with an innovative approach similar to SparkAmerica.us?

Better yet, why not learn from some of the most dynamic Latino entrepreneurs that are building interesting things and amassing a growing user base while developing innovative technologies.

Say hello to Interesante.

The place to discover and share Latino interests. Interesante is a unique startup in beta focused on immersive cultural shear-ability and fueling diaspora-driven commerce. It's a gateway to cultural interests in its most beautiful visual form. Interesante places a special focus on the deeper cultural nuances of social engagement commanding a user base representing over 41 countries including Argentina, the United States, Spain, Mexico, Colombia, Ecuador, Chile, Venezuela, Brazil, and Peru.

Interesante is the brain child of Rebecca Padnos Altamirano (CEO) who gracefully assembled a team of approximately ten individuals, largely based in Argentina.  These professionals are led by Antonio Altamirano (COO), Pablo Gamba (CTO), Claudio Cossio (VP Marketing), and Leandro Henflen (Design).  Antonio is also the co-founder of virtual postcard startup Dabble.

Our founder Jose Huitron, recently caught up with Antonio, one of the most prolific Latino entrepreneurs amassing a cross-national track record of unique startup activity.

Antonio arrived in the U.S. 13 years ago armed with a keen focus on the huge potential and possibility of entrepreneurship. "I needed to prepare myself to be the best I can be and be ready to launch and test my ideas in the real world. Not only by building a company but helping the community as a whole and in particular, the Latino community," said Antonio.

The allure of possibility combined with a passion for action has fueled an environment where Latinos are the future of entrepreneurship in the U.S. Latinos are now trendsetters, cultural icons, successful business people and are at the core of the American cultural fabric. However, no tool has placed the Latino consumer at the top of their pecking order. Enter Interesante.

"There are huge highs and massive lows. You go from a place where you feel you're going to conquer the world and some days it looks as if you are climbing Everest. Preparation is paramount to succeed in this environment. The fluctuation is so big you have to be careful, but that is what makes it fun." said Antonio.

"Other tools were born out of necessity for a particular need. Facebook doesn't even provide Open Graph in Spanish. We want to be the largest database of interests that are Latino based in the world.

For many budding Latino(a) entrepreneurs, the road to real impact requires a focus on identifying, enabling, and mobilizing champions and committed advisors. A real challenge lies in trying to bridge the gap between Latinos who want to do something big and Latinos in the U.S. who can invest and nurture the nascent Latino startup community. Interesante is a benchmark in how to bridge this gap and move inspired Latinos with bold ideas to a place where passion meets action.

Rebecca and her team at Interesante are a legitimate force to be reckoned with. They stand as a great example of an innovative startup that is built for Latinos by Latinos.

For Antonio and his team, Interesante is much more than a hub of diaspora-driven commerce. It is also a rallying cry for Latino entrepreneurs to step into the arena of innovation with confidence and a belief that your identity fuels the prolific.

The future of Latino entrepreneurship is already here.

The Coming Storm of Latino Startups Has Arrived

Where are all the Latino innovators? That's a popular question but the answers may be closer than they appear. There's a storm of Latino entrepreneurship activity happening in the U.S. and south of the border. Perhaps, the collectivist nature of Latinos may be a unique factor contributing to the somewhat quiet rise of startup dominance.

Hispanic entrepreneurs opened twice as many businesses as the national average in the 2000s, according to U.S. Census data. And recent data from the Kauffman Index of Entrepreneurial Activity highlights an interesting surge in entrepreneurship activity by Latinos.

The American dream is alive and well.  In 2010 immigrants accounted for nearly 30% of new business owners, versus 13% in 1996, according to the Kauffman Foundation. No matter how you cut it, Latinovators are enjoying their share of the entrepreneurship pie.

Of particular note, is the work of Jesse and Edwardo Martínez who founded the Latino Startup Alliance which was launched New Year’s Day 2012, now a budding network of over 240 innovators. However, the question remains. Where are the rest of the Latinopreneurs?

A mere 20 results show up for "US Hispanic Market" on AngelList which is the de facto standard for keeping tabs on the burgeoning startup arena in the U.S. and beyond. What does this mean? Perhaps, there's a ton of Latino startups listed on the site but are working under the radar with their profile hidden as they move close to launch or a point of desired product/service development. The truth? We need more Latino startups who are not afraid of their identity and the arena of possibility. Inc.com has its own list of Top Latino entrepreneurs who've achieved some striking marks of success and are actively blazing a trail of entrepreneurship activity.

There's no denying it, the Latino startup crowd is here and it's kind of a big deal capturing the attention of many, including some of Silicon Valley's most engaged venture capitalists as confirmed by the recent purchase of Mexican.vc by 500 Startups. If we look closely, there's something much bigger in the works. There's a real dynamic taking place where Latino innovators are playing the lead role in the U.S. and beyond.

And...it's only just beginning.

For Hispanic Americans, a Mega-Boom in Homeownership is Revving Up

"Hispanics are enthusiastically angling for the American dream of a home to call their own. Predictions indicated that between now and 2020, Hispanics  – the second largest ethnic group in America — will account for  50 percent of new buyers . Currently, 75  percent of first time buyers are white while Hispanic home buyers constitute 11 percent, a 38 percent increase over 2010 figures.  And as their purchasing power increases, a “mega rise” may be on the way."

We are currently at a crossroads where Latinos are impacting almost every industry in some form or another and recent data regarding homeownership speaks to the growth and influence of Latinos in America. The collective whole of the Latino population segment has presented both marketers and curious onlookers with a prime window of opportunity to create synergies that foster positive growth for America across virtually all forms of industry.

"In general,  Hispanics hold fast to the American dream. According to national housing surveys, despite worries over jobs and the economy, they  are more eager to become homeowners for both emotional and financial reasons.Though only 32 percent of all Americans consider owning a home a symbol of success, 56 percent of Hispanics believe that it is. Additionally, 68 percent of Hispanics versus 57 percent of all Americans are more likely to think purchasing a home is a sound economic decision. And 73 percent of Hispanics compared to 57 percent of all Americans feel that home ownership is a good path to building family wealth for future generations."

For the full article, visit Hispanic Americans Holding Fast to the American Dream