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Latinx-founded businesses raised 6.8 billion dollars in the United States in 2021, which is 143 percent higher than the previous year
FREMONT, CA: According to a latest analysis, the amount of venture money going into Latinx-founded startups increased in 2021, although such companies still receive a disproportionately tiny share of total venture dollars. Latinx-founded businesses raised 6.8 billion dollars in the United States in 2021. This was increased by 143 percent from the 2.8 billion dollars raised by similar companies in 2020.
Perhaps more importantly, given that overall venture investment achieved new highs last year, the share of venture dollars flowing into Latinx-founded businesses climbed as well, rising to 2.1 percent from 1.7 percent in 2020. That tidal wave helped the Bay Area. San Francisco companies raised the four largest fundraising totals for Latinx-founded startups in the United States in 2021. Brex Inc. raised 725 million dollars in a Series D round; Hinge Health Inc. raised a total of 700 million dollars in two rounds; Faire Wholesale, Inc. raised 660 million dollars in two rounds; and BetterUp Inc. raised 425 million dollars in two rounds.
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Latin American startups have also received funding from venture capital firms. According to Crunchbase, such companies raised 20 billion dollars in venture capital in 2021, up 320 percent from the previous year. However, nearly 78 percent of the money raised by Latinx-founded firms in the US went to later-stage enterprises. While investment for Latinx startups has increased in recent years, funding for early-stage enterprises has remained relatively flat. Latinx-founded firms raised 205 million dollars in angel, pre-seed, and seed capital in 2021, up just 20 million dollars, or 11 percent, from the amount raised in 2018. In 2021, those startups raised 1.3 billion dollars in additional early-stage rounds, up 63 percent from the previous year total.
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