Hispanic Venture Capital News

October 27, 2014 6 min read
Opinions expressed by Entrepreneur contributors are their own.
As a Mexican-American who has followed the recent celebration of Hispanic Heritage Month, I am very proud of my culture. The Hispanic community has a certain passion that transcends its component cultures and draws in others. The vibrancy of Hispanic cultures’ style, music and food has influenced the look and feel of America. This passion is also evident in the way many Hispanics do business and the opportunities that they create. 
Since 2007, Hispanics have been starting and growing businesses at more than twice the national rate. More than 3.2 million Hispanic-owned businesses will collectively contribute over $486 billion this year to the U.S. economy. While the population growth of Latinos is widely acknowledged, its business contribution to the American economy is often overlooked. 
Also overlooked are the lessons that Hispanic entrepreneurs can teach the broader business community. Because Hispanic entrepreneurs incorporate many aspects of their culture in their professional careers, they have a unique perspective on business and opportunity, making them an ideal demographic for creating new wealth. Below, I’ve outlined a few of the key characteristics of my culture and teachings to which I owe my own personal success.     
Related: Immigrants Can Shed Fears of Entering the Startup World — With These Strategies
1. Don’t stop at “no thanks.” 
Any entrepreneur will say persistence is a requirement for success and it has been embraced by many members of the Hispanic community to that end. While societal undertones are changing in places across the country, many Hispanics have dealt with adversity and challenges. When confronted with rejection, I and other Hispanics I know have not shied away from forging ahead to create a path.
When there are no “help wanted” signs or employment applications go unanswered, Hispanics stand on the street and offer their brawn to bring home the bacon to feed the family. 
Instead of waiting for opportunities to be offered, I have operated on the principle that opportunities must be made for one’s self.   
I immigrated to the States as a youngster and grew up in a central California labor camp and although the conditions were less than advantageous for members of my family, our work ethic and pride in our work led us to go beyond the expectations that others might have had for us. Many others are going through similar transitions and will drive the U.S. economy going forward. 
Despite economic challenges, poorly equipped schools and parents who worked hard but lacked academic preparation, my siblings and many peers found a way to achieve a measure of success. The realities of stratification combined with a work ethic honed by hard labor in fields and the packing sheds had a way of driving us towards success. A popular Mexican saying goes, “no te rajes,” which means “don’t back down” from a challenge.  
On a personal level, know yourself. I knew early on that I needed to be my own boss. But being successful took a great deal of preparation and willingness to take risk. I left Silicon Valley in 1995 with a meager bank account and a dream despite the plethora of opportunities there that I didn’t even bother to explore. Entrepreneurship was my way forward.
As President Calvin Coolidge said, “Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education [by itself] will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent.” 
Related: How Six Immigrant Entrepreneurs Transformed Dreams Into Businesses
2. Make your own network.

Hispanics call upon friends and family to develop business opportunities. Yet many Hispanics are first- or second-generation immigrants to the United States. As relatively new arrivals, they aren’t as likely to have broad existing family, friend or professional networks available to leverage when searching for jobs or selecting careers. Because they don’t have a foundation that’s been built up for decades, they must actively look for new connections and opportunities.
Other entrepreneurs can learn from this by being willing to move beyond their comfort zones and broaden their networks to places where opportunities can be found. Never stop making connections with the people who can advance a career. These ties are often the most challenging to make but the most rewarding.
When outnumbered and feeling unlike their peers — still the case for many Hispanics in Silicon Valley  — Latinos need to reach out and create personal connections within and across cultures. This requires breaking out of your shell and being more open and self-confident that you have something unique to offer.
Knowing that you’ve got a unique and valuable perspective — whether in a peer-to-peer discussion or when developing a business plan — this is the seed of entrepreneurship. 
Related: What Needs to Happen for More Women, Minorities to Get Into Computer Science
3. Embrace technology.  
Modern technology has opened the door for anyone to become an entrepreneur, depending on the quality of the idea and gumption to run with it. Now that the world has become an economy of ideas, those who leverage technology to their advantage can succeed despite a lack of traditional resources. Crowdfunding sites have overcome the challenge of capital, mobility has evaded concerns about location and social media has circumvented the issue of awareness and helped level the playing field.
Indeed studies have shown that Hispanic Americans are very active on social media channels. According to the Pew Research Center’s Internet Project, “80% of U.S. Hispanic adults use social media, compared to 72% for the country overall.” 
Never stop looking for opportunities to engage with others and equip your personal and professional brands accordingly to seize opportunity.  
The Hispanic community is becoming increasingly visible across America’s professional and economic landscape. As American society continues to diversify, the lessons of one group can apply to all groups. By understanding and learning from Hispanic experiences, members of the greater business community can emulate this success and capitalize on it. Americans can learn values and lessons from all communities to be collectively successful.
Related: 5 Lessons Entrepreneurs Can Learn From Oscar de la Renta

Make sure your brand and message is inclusive.
July 6, 2018 4 min read
Opinions expressed by Entrepreneur contributors are their own.
According to Geoscape, by 2020, over 50.6 percent of the U.S. population growth will be attributed to the Hispanic market.
Small and large corporations alike will be affected by this demographic shift, now and well into the future. Multicultural consumers are driving the growth of the U.S. economy, its employment growth and even upcoming political elections.
As the U.S. Hispanic community matures and becomes part of the mainstream, their household incomes increase and so does their economic class. The projected growth of Hispanic household incomes of $100k+ between 2017–2022 will be +23 vs. +12 percent for non-Hispanics, based on a Geoscape report.
Consumers do not buy products or services; they buy brand experiences. It starts from the first time they visit your website, walk inside your store or even interact with your customer service hotline. You have to be able to fulfill your customers’ needs, wants and desires so you can build loyalty, increase retention and turn them into your brand ambassadors.
Here are four helpful tips to gain a new profitable consumer base with Hispanics.
Related: 10 Reasons Why Good Customer Service Is Your Most Important Metric
1. Invest in research. 
Throughout my career, I have encountered many occasions when corporations did not know their Hispanic customer base. They didn’t know what percentage they represented, where they were located, what they bought from them, etc.
So, if the upcoming consumer growth will be multicultural, and in particular Hispanics, how can you project revenue growth in your company when you don’t know who your customers truly are or whether you are fulfilling their needs?
Qualitative and quantitative researches are the wisest investment you can make.
Related: Steal These 4 Proven Customer-Retention Strategies
2. Be proactive.
I have seen executives who get paralyzed with the decision of moving forward with a Hispanic market initiative. They make excuses such as, “I don’t have a budget for this market, it is not a priority as we are content at the present time.” Or they say, “Once we hire bilingual employees with a customer service hotline and we convert our marketing materials in multiple languages, then we will start thinking about marketing to Hispanics. ”
As Zig Zigler said, “If you wait until all the lights are green before you leave home, you’ll never get started on your trip to the top.”
You have to start somewhere. Reallocate a portion of your marketing budget to Hispanics. You will obtain a greater ROI.
3. Culture is more important than language. 
The growth of the Hispanic market will come from those born in the USA, bilingual, bi-culture, higher household income, higher level of education.
For many corporations, a Hispanic initiative means targeting to the traditional Spanish-speaking consumers through a partnership with a Hispanic network running translated messages or scripts into Spanish.
But, what about millennials and Generation Z? Diversity youthful is becoming the counterweight of white aging consumers. This is why cultural relevancy is key to engaging with Hispanics. It is not about language, it is about culture and how well you understand it.
English might be their preferred language, but your execution has to appeal to their cultural nuances.
Related: 25 Tips for Earning Customer Loyalty
4. Be inclusive.
You have to have the right diversity representation in your business. If you are in an area where, for example, 20 percent of the people living within a five- to 10-mile radius from your store are Hispanic, what makes you think that you don’t need bilingual people on your team?
You must hire accordingly, it will pay off in the long run. I remember talking with a car dealer in Miami who reached out to us because sales where declining for him.
Turns out, his marketing money was only allocated to the Anglo market. Basically, he was only reaching 30 percent of the Miami-Ft. Lauderdale DMA consumer market. That was a big part of his problem.
So, if you really want to be successful with Hispanic consumers, the best investment you can make is in education. Learn who they are, get exposed to their culture and how they interact with your brand.
Start investing in this market today, so you can assure a sustainable growth for your business now and well into the future.

How businesses can target one of the fastest-growing markets in America.
June 1, 2017 6 min read
Opinions expressed by Entrepreneur contributors are their own.
America is changing and becoming more multicultural. A big part of that has been due to the Hispanic market. They are not just a sub-segment of our economy anymore. They have become a powerhouse of economic and political influence. Their purchasing power of over $1.5 trillion is larger than the GDP of Mexico, which is considered one of the top 10 economies in the world.
If corporate America wants to strive for business success, it is time to reevaluate our marketing budgets and efforts to cater to this flourishing market.
Many times the excuse I receive from marketing executives for not addressing this market is that they do not have a budget for a separate Hispanic market initiative, or their current budget is not big enough to justify an ongoing investment.
Related: Free Marketing Tools Every Entrepreneur Can Use
Just because your company may not be performing well in the general market doesn’t mean you can’t excel in the Hispanic market.
If you want your business to succeed and attain a steady growth in the years to come, you must reallocate your marketing budget to areas or markets you haven’t reached before. Consumers are becoming more diverse and multicultural. This means your marketing approach needs to do the same. You must engage with consumers in more meaningful and culturally relevant way if you want to truly connect with them.
According to the report from Geoscape American Marketscape DataStream, minorities will constitute 80 percent of U.S. population growth between 2015 and 2020. Hispanics will represent 50.6 percent of that figure.
What does this translate to you?
Some marketing executives think it means more work on top of what they already have. That way of thinking is costing millions of dollars in lost revenue because their marketing departments are not responding to current market trends or to their consumer’s demands. All thoughts of initiating a Hispanic marketing approach are swept under the rug.
Related: The 5 Biggest Influencer Marketing Myths That Won’t Die
For others, it translates to opportunities to sell more product or services. To set themselves apart from their competitors and in many cases, to become a leader and pioneer in their industry by embracing a market that is one of the fastest-growing demographics in the USA.
The new America is not just a one-color nation requiring one marketing approach for everyone. We are a melting pot of different colors, nationalities, and cultures. Just look at the free market research or articles in major publications on the Internet. They will give you a sense and a macro point of view of how industries and markets are evolving. Instead of excluding and isolating, we must include and embrace if we really want sales growth and success in any organization.
Here are 6 reasons why corporate America falls short with their Hispanic market approach:
They don’t understand their audience. In the corporate world, there is still a misconception that since the growth of the Hispanic market comes from U.S.-born Hispanics they are culturally assimilating to the American way. So executives think their “one strategy, one message, one language” approach is good enough to reach this market. This is absolutely false. The more acculturated Hispanics are, the use of English language in your messaging is appropriate. However, whether you use English or Spanish, your execution must reflect their culture, heritage, and needs to assure brand engagement.
Cultural relevancy is key. Whether they are U.S. born or foreign born, Hispanics don’t want to be sold. They want brands to embrace their cultural relevancy. So, your campaigns have to be created for and targeted to them with messages that truly speak to their needs. Only then will you achieve the level of brand engagement that generates greater return on investment and delivers the results you want. Whether you use English or Spanish, it must be culturally relevant.
Testing the waters. Many companies tend to test the waters first instead of embracing the effort and getting a real taste of what this audience can deliver to their bottom-line. It is good to start slow, but you need to be committed to an ongoing effort. If you are running an ad campaign for a couple of weeks in different Hispanic media to see who you are getting more responses from, you are basically throwing your money away. You have to be consistent if you truly want to penetrate this market the same way you are doing for the general market. Allocate a reasonable budget by carving your general marketing budget. Build and develop a strong foundation and you will have an ongoing revenue source.
Translations vs Trans-creations. Translations could work for specific things such as a simple collateral piece or product label, for example. However, a straight translation lacks cultural relevancy. If you are translating a message that has been created for the general market, not Hispanics, you are falling short with your execution and approach. The most effective way to engage with Hispanics is by the “trans-creation” of the campaign. This means, create a campaign message that appeals to Hispanic core values, yet still respects the overall strategy and branding position from the general market campaign.
Supporting the community is not good enough. For some companies, community outreach is their overall Hispanic market effort for they year–whether they sponsor some Hispanic events or become a partner of a Hispanic non-profit organization by paying an annual trustee membership. In many cases, executives think that because of the mission of these non-profit organizations, they are reaching their customers in those specific DMAs across the nation. This is not necessarily true. It is important to sponsor events and support these organizations. However, community outreach should act as a support of your ongoing Hispanic marketing efforts, not as your annual Hispanic initiative. If you look at your overall Hispanic market DMA and you compare it with the amount of members of these non-profit organizations, you will realize that you are only reaching to a small percentage of your audience, not your overall target audience.
Getting the right help. Having a strong consultant or Hispanic marketing firm that understands Hispanic culture is key to your success. They will bring smart, effective solutions to help you engage and genuinely connect with this market. Having people on your team who speak Spanish does not necessarily mean they know how to connect with this audience. I have seen the frustration of many chief marketing officers who were using their own Hispanic employees to translate their marketing materials and it was not producing good results. Plus, they had many errors throughout their marketing materials. Cutting corners will hurt your business and your end result.
The success of a business will be defined by how well companies market their products and services to all groups, not just “the general market.” It will also depend on how open-minded executives are to reacting to market challenges and trends.
It is estimated that by 2020 the Hispanic purchasing power will reach $1.7 trillion. The question you need to ask yourself is: how much revenue are you leaving on the table by not engaging with this influential audience?

Attracting Hispanic customers can prove a huge boon for your small business moving forward.
May 10, 2019 4 min read
Opinions expressed by Entrepreneur contributors are their own.
It is estimated that by 2021 more than 50 percent of the U.S. population growth will be attributed to Hispanics based on a report from Geoscape American Marketscape DataStream. Today, youthful diversity is becoming the counterweight to white, aging consumers, and it is forcing brands to redefine themselves — to discover new market opportunities and develop more meaningful, culturally relevant customer experiences. 
We live in a reactive society, not a proactive one, and Corporate America moves slowly. Sometimes, the procedures that companies have in place don’t allow them to react fast enough to market trends. It’s like the old motto that many executives cling to: “If it is not broken why fix it?”
They think that if consumers want their products or services, they will buy them, and if not then so be it.
That outdated thinking won’t be sustainable moving forward, and it doesn’t have to be thanks to technology that has helped brands communicate to consumers. I remember in early 2000, many marketing executives didn’t believe in the power of digital and social media. Back then, I was participating in marketing meetings where executives had strong opinions about this new technology because it was challenging their status quo. I heard comments like, “This type of technology will never take off” and “I will never invest marketing dollars in it.” 
Now, many corporations are allocating between 40 to 60 percent of their marketing budget to digital and social media. 
That disruption a decade ago is similar to the one Hispanic consumers can create now. They are a big player and influencer in the marketplace. Yet, in the face of such a dynamic shift, I still encounter business owners who say the Hispanic market is not a top priority. They think they are already reaching Hispanic consumers through their one-size-fits-all, total market approach.
But today’s consumers are more diverse, demanding, and product savvy, and they have high expectations. So, let me share with you 3 helpful tips that will help you find a significant business opportunity with Hispanic consumers:
Be a leader. John Maxwell said, “A leader is one who knows the way, goes the way and shows the way.” Eliminate the fluff about diversity and inclusion in your vision and mission statements, and set a high bar that others in your industry will have to compete with. 
Calculate the cost of opportunity. Stop thinking about how much it is going to cost you and start thinking about the money you are leaving on the table by not tapping into a growing and influential consumer base.
Make a lasting impression. Dale Carnegie, in his book How to Win Friends and Influence People in the Digital Age, said, “To influence others to act, you must first connect to a core desire within them.” This is why cultural relevancy is key to engaging with multicultural mainstream. Stay away from a total market approach and literal translations. That won’t get you the results you are looking for.
How to improve your company’s standing with Hispanics
Start by realizing that even the idea of “Hispanics” is overly broad. Just as British and American cultures are not the same even though they speak English, what makes you think that Hispanics are all the same?
Take time to learn about your consumers and how you can influence them. Remember that consumers will decide when and how to interact with your brand and do business with you.
It’s not about what you want anymore. It’s about them.

A Dr. Pepper executive reveals the importance of being culturally relevant.
October 18, 2018 5 min read
Opinions expressed by Entrepreneur contributors are their own.
The United States is changing as a nation. Youthful diversity is becoming the counterweight of white aging consumers. This demographic and cultural shift is challenging brands in every way — from how to interact with these new consumers to efficiency and marketing. The one-size fits all approach is now outdated, and the more progressive companies are realizing that it is no longer cost-effective. Corporations have to be more strategic in their approach and develop a deep understanding of the customer base they serve.
In this market, you must create an experience if you want to generate a sale.
I personally believe that the market is shifting from a transaction focus to a brand experiential stand point. With today’s diverse, tech-savvy and more demanding audience, you have to create an experience from the moment a consumer first interacts with your brand. That experience must keep them engaged throughout the purchase process and keep them connected afterwards.
The old-fashioned, inefficient way of thinking that I still encounter with some corporate executives is: “You come to us if you need our product or service.” You simply cannot have that mindset in this marketplace if you want to survive. Today, you need to reach out and connect with consumers within their lifestyle. You must create a memorable experience and messaging that will resonate with them. Maintain the momentum all the way from introduction to well past the purchase. Keep them engaged and you will have a loyal customer. This is crucial if you want to increase revenue, market share, and set yourself apart from your competitors.
I inteviewed Pablo Guzman, Vice-President of Sales — Hispanic Markets, at Keurig Dr. Pepper Inc. (CPG). Guzman is a passionate and well-respected Hispanic market leader with more than 20 years of experience in the industry working for CPG brands in the U.S.A.
Guzman shared with me the three strategic pillars he believes are necessary for a successful outcome of any Hispanic market initiative.
Related: 10 Examples of Companies With Fantastic Cultures
Build brand presence.
This starts with the media part of the marketing campaign (digital, TV, radio, point-of-sale, etc). You must bring the message to life for the consumer. The media needs to be coordinated to have the brand present and available for the consumer to either see, sample, or buy. It means building a meaningful presence, whether it is graffiti art, a billboard, interactive digital media, or the point-of-sale on display at the store. You need to be visible and present.
Additionally, the message must be as consistent for the general market consumer as it is for the Latino consumer. It does not require a separate Spanish version campaign (not to be interpreted as saying no Spanish media), but rather trans-created to get the brand message across in a culturally relevant manner. The brand presence will come when the consumer sees the same message throughout the market.
Execute with a Latino-centric focus.
The Latino consumer today is shopping in ALL channels and stores. Whether it’s ecommerce, clothing, food and beverages or something else, you need to keep the consumer’s culture in mind. Take advantage of where you know the consumer consistently shops and have the right mix in mind. Take soda, for example: The Latino culture is a big fan of citrus flavors, so you might emphasize those options. But don’t forget: Latino consumers are also evolving and will develop new preferences.
This Latino-focused approach will provide authenticity and new growth. Just look at what has happened in food: Salsa has surpassed ketchup. Tortillas are a value item in a burrito, yet they are a high-margin item when they are called “wraps”. This is why it is also important to keep this focus when you look at general market stores like Kroger, Publix, or Walmart. Latino consumers are shopping everywhere, so if you don’t offer a good selection of Hispanic items they will go elsewhere.
Related: The 5 Must-Ask Interview Questions to Determine if Someone’s a Fit
Become part of the community.
Build a long lasting commitment with local communities. Some people call this grass roots marketing, some call it neighborhood marketing. Guzman calls it building trust. There are many companies that rely on the Latino community for growth and are quick to take advantage of this. But, if they don’t build a long-term relationship with the culture as a whole, that growth will be short-lived.
Within the executive world, there is still a lack of understanding or denial to embrace the fact that consumers are becoming more diverse and they know exactly what they want. Technology allows them to be that way. They can determine if you are a reputable brand and if you will be able to fulfill their needs with just a simple touch of their screen and a quick scan of online reviews.
Your story behind the brand and your cultural relevancy at the time of execution are crucial. If you want to connect with the Latino community in a very powerful way, learn the right way to trigger their behaviors to engage with your brand. Do not expect that a marketing campaign alone will get the job done. There is still much work that needs to be done with consumers at the retail point. Remember, the role of advertising is to bring awareness, generate a desire of ownership, and drive traffic to your ecommerce site or store front. From there, you must act on the momentum and provide a welcoming, culturally relevant customer experience so you can retain them, gain their loyalty and turn them into an ambassador for your brand.

Why you should consider Hispanic customers as a vital part of your future sales strategy.
December 22, 2017 4 min read
Opinions expressed by Entrepreneur contributors are their own.
As we are getting closer to the end of the year, many companies are planning and seeking how they can maximize their marketing efforts in 2018. In some cases, CMOs have targeted the Hispanic market as a new stream of revenue, but they haven’t seen a strong return on investment (ROI) because they haven’t been fully committed.
Some of the most common trends I have seen in the marketing and advertising industry are that for some CMOs or executives, they have to increase sales and revenue first to then consider the Hispanic market as part of their marketing efforts.
As we all know, getting new customers in the door is essential to increase revenue. America is changing and evolving where minorities are driving the growth of some major markets besides the nation. 
So, why shouldn’t you consider the Hispanic market as a venue to increase sales and revenue? How can you justify that by investing all your advertising dollars in the general market; a market that is getting more fragmented and consumers have more options to choose from you foresee to sale more and increase revenue.
Related: 10 Reasons Why Good Customer Service Is Your Most Important Metric
Forecast, planning and budget it is not solely based on what you have done previous years. It is also based on future consumption patterns, loyalty and growth market trends. When you take a look of age, life stage and family size, the cumulative lifetime spending of Hispanics households is greater than white non-Hispanics households, according to Geoscape.
Doing what you’ve always done is easier and more comfortable. But, this behavior lacks vision. As author John Maxwell says, “A leader is one who knows the way, goes the way and shows the way.”
Another trend I have seen from CMOs is that they want to test the waters first, then decide if they are going to commit or not. Testing is good, but if you don’t have a strategy or a plan with an ongoing campaign, then the strong profits, higher revenue and market share you are looking for won’t just appear.
What you should be doing is testing marketing variables. For example: How do Hispanics respond to a specific offer? Is the media you chose to deliver that offer the right one? If you take the wrong approach, this is a simple way to waste your marketing dollars, regardless how much you invest.
Once, a college from Florida wanted to do a test campaign by doing some grass root marketing and community involvement first. The problem was that the marketing director wasn’t willing to understand the cultural challenges the college had to overcome first because they hadn’t reached the Hispanic market in the past. This marketing director tried to make assumptions that, because they have been in the market for quite a long time, everybody knew about his college.
This was a recipe for failure. 
Related: 5 Ways to Build Killer Relationships With Customers
Apply cultural relevancy
If you want to win Hispanics, stay away from the literal translation of your current English campaign done by your Anglo agency or the Hispanic media. Start trans-creating your campaigns.
It is not just about language. It is about culture and how well you understand it. Cultural relevancy is key to connecting with Hispanics in English and Spanish. The problem is that most of the time companies are more focused on their brand’s interest rather than consumer’s cultural values, preferences and buying process.
Just because you or your agency has a person on the team who speaks Spanish doesn’t mean they know what needs to be done to achieve the results and success you are looking for. Believe me, I see it all the time.
I have seen many corporations do this without really understanding the process of changing product perceptions in Hispanic consumer’s mind and the importance of consistently targeting to them until this change takes place. Stop applying the expectations and benchmarks that work well for you in the general market — but not the resources — into a Hispanic campaign. 
It often takes almost as much time, energy and money to invest in a failing campaign as a successful one, so think about that when you decide to make the jump.
At the end of the day, it is not just about price. It is about cost.