Mattermark recently featured a post in their daily curated newsletter that truly resonated with me. The post, “Birth of an Ecosystem: Understanding the Market for Black and Latino Tech Consumers,” written by Monique Woodard, 500 Startups first Black Venture Partner, analyzes the investment opportunity of markets that are being created by demographic growth not currently being well-served by incumbents.
Woodard believes, “The next wave of tech innovation will be driven by the activity of black and Latino consumers online.” Woodard supports her position by providing staggering statistics on some of the fastest growing segments in the US:
- Black and Latino consumers spend up to 55 hours per month on mobile devices — 27% more than their peers.
- Black and Latino users consume a combined 137% more streaming video than other demographics and are more likely to create video than other groups.
- By the year 2044, people of color will become the the majority in the US, making up over half of the US population, and within this group, 37% will be black or Latino.
These numbers are important because underserved communities are increasingly becoming more technology driven, media savvy and socially empowered. The evidence is undeniable, yet this segment continues to be overlooked and under-invested. 87% of VC-backed founders are White with less than 1% Black. There are problems worth solving that will be inevitably brought to the surface from often unheard voices. (Pigeonly is a great example of this potential.) Opportunities are being missed and that is why investors should be considering new investment strategies.
humble ventures is increasing the representation of underserved communities and providing a new network for investors to discover tech talent.
humble ventures is a venture catalyst cooperative (impact, innovate, invest) that serves as the bridge between startups, investors, and established organizations. We believe the best way to realize opportunity is through collaboration & partnerships. Within our cooperative is a non-profit…[continue reading]