BKR Capital Closes $20M for Black Innovation Fund II

Toronto-based venture capital firm BKR Capital has announced an initial $20 million close for its second Black Innovation Fund, aimed at backing the next generation of globally competitive Black-led technology companies.

Institutional investors in this round include Royal Bank of Canada, Boann Social Impact Fund, Cap Finance Social Finance Fund, Business Development Bank of Canada (BDC), and Export Development Canada (EDC).

Fund II is targeting $50 million overall and is expected to invest in about 25 companies. Initial checks will range from $250,000 to $1.5 million, with significant follow-on capital reserved for top performers.

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BKR Capital Aims to Bridge VC Funding Gap for Black Founders in Canada

According to the 2026 Black Startup Funding Report, Black-led startups in Canada received a mere $10 million in venture capital (VC) funding last year, distributed across only 11 companies. Notably, nearly 90% of these deals are pre-seed and seed stage, highlighting a growing pipeline of early-stage innovation that’s largely underfunded. BKR Capital aims to address this disparity

The firm, Canada’s first institutionally backed Black-led venture capital firm, has announced an initial $20 million close for its second Black Innovation Fund. After investing in 15 companies through its first $20 million for Fund I, BKR is targeting a final close of $50 million for Fund II, aiming to “back the next generation of globally competitive Black-led technology companies”.

BKR Capital’s investment thesis from inception has centered on uncovering overlooked opportunities, according to General Partner and co-founder Isaac Olowolafe, “there was a powerful investment opportunity hiding in plain sight.” By focusing on exceptional founders historically overlooked by traditional venture networks, the firm has achieved strong financial performance “from investing in innovation before the broader market recognizes its value.”

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Since launching its first fund, the firm, which was founded in 2021 by Lise Birikundavyi and Isaac Olowolafe, has built a portfolio spanning fintech, cybersecurity, enterprise software, and AI, with several companies emerging as global champions. Protexxa, a cybersecurity platform operating in nine countries, exemplifies this success. Other startups in its portfolio include Calgary-based FinTech startup Woveo and Montréal-based benefits platform Workind. 

Co-Founder and Managing Partner Lise Birikundavyi notes the firm’s extensive review of startups has revealed “a deep pipeline of talented entrepreneurs building the companies of tomorrow,” making Fund II a logical next step: “the scale of that opportunity made launching Fund II a clear next step.”

How Black Innovation Fund Will Level The Playing Field for Black Founders

With the recent funding, the VC firm now has $20 million to help bridge the funding gap for Black founders in Canada and plans to raise additional capital. BKR Capital has begun deploying the capital, completed its first investment, and is advancing additional opportunities through due diligence.

Paula Cruickshank, Senior Vice President at BDC Capital, praises the firm’s strategy: “BKR has demonstrated that backing exceptional founders who have historically been overlooked is not only the right thing to do, but also a strong investment strategy.”

Meanwhile, Ebenezer Arthur, Partner at BKR Capital, highlights the firm’s global focus: “Many of the founders we back are building companies that are thinking global from day one. Our platform helps them access networks and markets that accelerate expansion not only across North America but also into some of the fastest-growing technology ecosystems across Africa, Asia, Latin America, and the Caribbean.”

“Supporting Canadian companies as they expand into global markets is critical in today’s economic environment, and our investment in this fund speaks to our commitment to helping level the playing field for Black-owned businesses to access the capital they need to fuel their growth,” said Lissa Bjerkelund, Vice-President and Head of Investments at EDC and executive responsible for investments. 

“Funds like BKR Capital help Canadian businesses scale into new and fast-growing trade markets, contributing to greater trade diversification and ensuring more Canadian technologies have equal opportunity to compete globally.”

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In addition, through its nonprofit, the BKR Catalyst Institute, the Toronto-based firm is working to strengthen the venture capital ecosystem by supporting underrepresented investors through training and access to networks.

Main Image: The BKR Capital Investment Team. Image Credit: BKR Capital