Keith Ippel, founder & Co-CEO of Spring, a leading early-stage impact investing ecosystem, believes that the North American economy is driven by immigrants. In Canada, 20% of the population is immigrants, and the country welcomes around 500,000 newcomers annually. Similarly, almost 15% of the U.S. population was born in another country. Many of these immigrants come to North America with entrepreneurial aspirations, recognizing the opportunities for innovation and growth in the region’s robust entrepreneurial ecosystem.
Entrepreneurship offers a way for immigrants to overcome barriers to traditional employment, such as credential recognition issues. For example, a healthcare worker may choose to start a health-tech startup to leverage their expertise without facing challenges related to retraining or requalification. However, immigrant founders continue to be underserved and underfunded in the current investment landscape. Despite their potential for rapid growth and job creation, immigrant entrepreneurs have not been fully embraced by the funding ecosystem.
Ippel sees an opportunity for the North American investment community to support immigrant founders through the funding process. He identifies key challenges immigrant founders face, such as becoming capital-ready, understanding the investment landscape, learning financial terminology, and connecting with the right investors at the right time. To address these challenges, investors can play a crucial role in providing training, education, mentorship, and networking opportunities tailored to immigrant entrepreneurs.
Investors can help create a more welcoming and supportive community for immigrant founders by offering training on becoming investment-ready, sharing knowledge about available forms of capital, and building bridges between founders and investors. Organizations like the National Angel Capital Organization in Canada and the Angel Capital Association in the U.S. are already working towards establishing this community support. By approaching immigrant founders with patience, understanding, and a willingness to mentor, investors can help break down existing barriers and uncover the untapped potential of immigrant-led businesses.
Supporting immigrant entrepreneurs not only benefits individual founders but also contributes to the overall economy. Immigrant entrepreneurs represent a significant portion of North America’s entrepreneurial landscape, and empowering them can lead to significant economic growth and job creation. By investing in immigrant founders, investors have the opportunity to achieve both financial returns and social impact, creating a “return on investment squared.” Breaking down barriers for immigrant entrepreneurs opens up new opportunities and drives innovation in the North American business ecosystem.
