Toronto-based BKR Capital (formerly Black Innovation Capital) has secured a CA$20 million (approximately US$14.5 million) first close for its second fund, Black Innovation Fund II, as it looks to scale its investments in Black-led technology startups. The fund is targeting a total size of CA$50 million.
The round drew backing from a mix of institutional and impact-focused investors, including Royal Bank of Canada, Boann Social Impact Fund, Cap Finance Social Finance Fund, Business Development Bank of Canada (BDC), and Export Development Canada (EDC).
The raise comes at a time when funding gaps for Black founders remain stark.
The raise comes at a time when funding gaps for Black founders remain stark. In 2025, Black-led startups received just 0.15% of total venture capital deployed in Canada, highlighting the structural imbalance BKR is aiming to address.
Addressing the funding gap for black communities
Founded in 2021 by Isaac Olowolafe and Lise Birikundavyi, BKR Capital invests in high-growth technology companies led by founders from the Black community.
BKR Capital invests across sectors, including fintech, cybersecurity (Protexxa), enterprise software, and AI. The firm says its first fund is already tracking as a top-quartile fund for its vintage, according to Carta benchmarks. That debut fund backed 15 companies, including cybersecurity firm Protexxa, which has since expanded operations across nine countries.
With Fund II, BKR has already begun deploying capital, making its first investment and evaluating additional deals. According to the firm, nearly 90% of deals involving Black founders are concentrated at the pre-seed and seed stages, pointing to a growing but still underfunded pipeline.
BKR aims to step in early and support companies as they scale into global markets.
Many of the startups it backs are building with international expansion in mind from day one, targeting regions including Africa, Asia, Latin America, and the Caribbean.
