In a significant move to bolster economic development and support for Latino entrepreneurs in the U.S., the Ares Charitable Foundation launched the ELEVATE initiative on September 30, 2024. This initiative aims to address the barriers faced by Latino entrepreneurs, who start businesses at twice the rate of the general U.S. population [53a8a4e4]. Latino-owned businesses employ nearly one million workers and contribute over $100 billion in annual payroll, highlighting their vital role in the economy [53a8a4e4].
The Ares Foundation has also provided a grant to the Brookings Institution to conduct research on Latino-owned businesses. This research will analyze the contributions of Latino renewable energy businesses and the effects of artificial intelligence (AI) on their growth [53a8a4e4]. Notably, Latino contributions to the U.S. GDP exceed $3.5 trillion, yet the share of employer firms among Latinos stands at only 7.85%, compared to 19.1% for the overall U.S. population [53a8a4e4].
Michael Arougheti, CEO of Ares, and Michelle Armstrong, President of the Ares Foundation, emphasized the importance of this initiative in fostering equity and economic growth within the Latino community [53a8a4e4]. The launch of ELEVATE aligns with broader trends in venture capital funding, which has surged to $55.6 billion in Q2 2023, largely driven by investments in the AI sector [fda74891].
This surge in venture capital funding reflects growing investor confidence, particularly in AI startups, which have seen significant investments from major firms like Andreessen Horowitz [7de1082b]. However, the overall exit landscape for startups remains challenging, with the IPO market struggling to gain momentum [fda74891].
In addition to ELEVATE, Google for Startups recently awarded grants to 20 startups led by Black and Latino founders, further emphasizing the importance of diversity and inclusion in the tech industry [eca86bd3]. Each startup received a $150,000 non-dilutive cash award and $100,000 in Google Cloud credits, showcasing efforts to support underrepresented entrepreneurs [eca86bd3].
Overall, the Ares Charitable Foundation's ELEVATE initiative represents a crucial step in supporting Latino entrepreneurs and fostering economic development, while the broader venture capital landscape continues to evolve with a focus on AI and diversity [fda74891][eca86bd3][53a8a4e4].