BKR Capital raises $14.5M (to date) to invest in Black startups

BKR Capital in Canada he announced on Monday that its Fund II has closed $20 million CAD (about $14.5 million USD), bringing it closer to its goal of $50 million CAD.

The fund is looking behind “leading technology companies led by black founders, building solutions for the future of work, life, and global connectivity,” managing partner Lise Birikundavyi told TechCrunch. The company is focused on Canada, although it is open to support select companies worldwide. The size of the check will be between $250,000 and $1.5 million, he said.

Birikundavyi said about 70% of black people in Canada are immigrants or second generation, “making it possible for startups to build globally from day one, opening up access to global markets and creating opportunities to scale up.”

While many US companies have refused to publicly advertise a project that could be seen as diversity, equity, and inclusion (DEI), Birikundavyi said his Toronto-based fund does not share the same fears. The situation in Canada is less about DEI recovery and restructuring, he said, as investors “prioritize labor negotiations,” although “the fundamental opportunity has not changed.”

He added, “Expanding opportunities for overlooked startups continues to drive high-profile sales, making this less of a DEI and more of a fraudulent investment.” He believes that Canadian investors still see “integrated funds” as good for the environment and full of profitable business opportunities.

The company’s philosophy is based on the belief that “unforgettable markets and diverse events can open opportunities for progress,” said Birikundavyi. The company was launched in 2021 and raised $22 million in its Fund I (which Birikundavyi said is outperforming 75% of other funds launched at the same time). He said BKR Capital expects to close the final Fund II in December and invest in 25 companies.