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The Merit Answer
Brown to the Back

The ones who get through outperform the people already inside.

The True Data of Latino Owned.

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No Reason GivenUnder Two PercentThe Million Dollar WallThe Merit Answer$1.1 Trillion

The standard reply to all of this is that the ventures are not fundable on merit. The data answers it directly, and not in the direction the reply assumes.

MeasureLatino-ownedComparison
Median venture deal size when funded$6Mabove US median
Profitable in 202484%outpacing white-owned
Construction sector growth, 2017–202386%2% white-owned
Pursuing acquisitions38%26% white-owned
Operating internationally~50%higher median margins

A filter screening honestly for merit produces survivors clustered at the bar — barely good enough, because everyone above the line got through. These survivors are 43x the sector growth, above-median deal sizes and higher profitability than the firms already funded.

When the people who clear a gate consistently outperform the people inside it, the gate is not measuring quality. It is measuring something else, and rejecting quality on the way.

What actually exists

Ask for the denial in writing, every time. A written reason is the difference between a market signal and a closed door — and you are entitled to one under the Equal Credit Opportunity Act for credit applications.

Second ChanceWhy SHE Matters

En español

Menos del 2% del capital de riesgo en Estados Unidos va a negocios latinos — mientras hay 465,202 empresas latinas con empleados, que crecieron 44% mientras las empresas de dueños blancos disminuyeron.

Cuando piden financiamiento, solo el 21% recibe la cantidad completa, frente al 40% de los dueños blancos. Y cuando les niegan el préstamo, solo al 51% le explican por qué — frente al 87%.

No es falta de mérito: cuando sí reciben capital, el monto mediano es de $6 millones, por encima de la mediana nacional, y el 84% fueron rentables en 2024.

Pida siempre la negación por escrito. Bajo la Equal Credit Opportunity Act usted tiene derecho a una razón.

Source. Stanford Graduate School of Business, Latino Entrepreneurship Initiative, State of Latino Entrepreneurship, 2023–2025 reporting years. Figures are reproduced as published. Where two groups are compared, both numbers come from the same survey instrument in the same year, so the comparison is like for like. We publish the source so the arithmetic can be checked rather than trusted.