By Júlia Figueiredo, Director, Business Development and IR at Partners for Growth
Women play a vital role in our economies and societies. However, they continue to face significant barriers, especially in Latin America and among the Latin diaspora in the United States. Despite their proven ability to drive growth and create opportunities, Latina women remain undervalued and underfunded. Investing in latina women is not just a matter of equity, it is an economic imperative with the potential to transform entire markets.
The numbers speak for themselves. Women are responsible for 70-80% of global purchasing decisions and represent 45% of the workforce in Latin America. Moreover, companies led by women in the region have proven highly profitable: a McKinsey study indicates that companies with greater gender diversity can generate up to 25% more profit than those without it.
However, when it comes to access to financing, the gap is alarming. According to LAVCA (Latin American Venture Capital Association), only 5% of venture capital in Latin America is allocated to startups founded exclusively by women. The situation is not much better in the United States: in 2023, just 2% of venture capital was invested in Latina women founders. This is despite the fact that women-led companies tend to generate higher returns per dollar invested than those led exclusively by men.
Why does this disparity persist? Multiple structural factors limit women’s access to capital and growth opportunities, including:
• Lack of representation in investment networks: Women have less access to investors, mentors, and key financing networks. However, initiatives like WeXChange, co-founded by Susana Garcia-Robles, have emerged to bridge this gap. WeXChange, a platform of the Inter-American Development Bank, connects women entrepreneurs with mentors, investors, and other businesswomen.
• Unconscious biases: Latina entrepreneurs face constant doubts about their ability to lead and scale companies.
• Cultural and social expectation challenges: Many women are still assigned caregiving roles that hinder their ability to take financial and business risks.
Additionally, there is a lack of public policies and financing programs to support women-led businesses’ growth. Most existing programs are not tailored to the realities of women entrepreneurs in the region. However, various organizations and leaders are working to change this situation:
• Marta Cruz, co-founder of WeInvest LatAm, has promoted a network of women investors to increase the capital available for women entrepreneurs.
• Gretel Perera, co-founder and president of L500 Inc., has created a private network of Latina executives that promotes access to opportunities for women in leadership positions.
• Rocío Medina van Nierop, co-founder and CEO of Latinas in Tech, has developed a platform that supports the growth of Latinas in technology and digital businesses.
• Alessandra Zonari and Carolina Reis Oliveira, founders of OneSkin, have demonstrated that women-led startups can compete globally and attract significant investment.
When women thrive, economies prosper. According to the The World Bank, closing the gender gap in labor participation in Latin America could add up to $2.6 trillion to the regional GDP. Latinas are the fastest-growing demographic group of entrepreneurs in the United States, with an 87% increase in business creation over the past decade.
Investing in women strengthens the companies they lead and has a multiplier effect on their communities. It has been demonstrated that women reinvest up to 90% of their income in their families’ education, health, and well-being, thereby creating a lasting impact on poverty reduction and improving the quality of life.
The Role of Capital and the Urgency to Act
The investment sector, ranging from venture capital funds to financial institutions, is responsible for driving this change. Key strategies include:
1. Increase investment in women-led funds: Investment funds with women in leadership positions are twice as likely to invest in startups founded by women.
2. Create tailored financing programs: Financial products that consider the specific barriers Latina women entrepreneurs face are needed.
3. Include more women in decision-making processes: Leadership diversity is crucial to transforming the financing dynamics, from boards of directors to investment committees.
4. Foster support and mentorship networks: Connecting women entrepreneurs with investors and industry leaders can generate transformative opportunities.
More Than an Option, It’s a Necessity
We cannot continue to ignore women’s potential in Latin America and the United States. Investing in them means investing in the future of our economies. The call is clear: investors, the public sector, and the business community must commit to closing the financing gap and creating an ecosystem that fosters female leadership.
The talent is already there. What is lacking is the willingness to take a chance on it. I am ready to bet on them!
These views are my own and not of my employer — Júlia Figueiredo.
