No disclosure duty
Here the floor drops out. Venture investment is not a credit transaction, so ECOA and Regulation B do not apply, and no federal law requires an investor to tell you anything at all about why they passed.
Which is where the campaign's number lives. Under 2% of all US venture funding reaches Latino-owned businesses, 21% of Latino entrepreneurs receive the full amount they request against 40% of white entrepreneurs, and the gap is widest at $1 million and above — in the one arena with no disclosure duty whatsoever.
Across the eight lanes above, a specific written reason is your right and most people never ask for it. In this lane it is not your right and asking is all you have.
That is the ladder. The rungs where the law makes someone explain themselves are the rungs Latino founders are most often pushed off before reaching, and the rung where nobody has to explain anything is the one where the money actually is.
Equity investment is not credit. No federal law requires an investor to give you a reason.
Where you are matters
Ten states have a commercial financing disclosure law in effect and forty-one do not. Regulation B applies in all of them.