BRK Capital raises $14.5M (so far) to invest in Black founders

Canada’s BRK Capital announced Monday that its Fund II has closed $20 cardinal CAD (around $14.5 cardinal USD), bringing it person to its $50 cardinal CAD target.

This money is looking to backmost “high-growth exertion companies led by founders from the Black community, gathering solutions for the aboriginal of work, living, and planetary connectivity,” managing spouse Lise Birikundavyi told TechCrunch. The steadfast is chiefly looking astatine Canada, though is unfastened to backing prime companies globally. The mean cheque size volition beryllium betwixt $250,000 to $1.5 million, she said.

Birikundavyi said that astir 70% of the Black colonisation successful Canada is archetypal oregon second-generation immigrants, “resulting successful founders who physique globally from time one, unlocking aboriginal entree to planetary markets and creating a structural vantage successful scaling.”

Though galore U.S. firms person shied distant from openly advertizing a ngo that could beryllium perceived arsenic diversity, equity, and inclusion (DEI), Birikundavyi said her Toronto-based money doesn’t stock those nonstop fears. What’s happening successful Canada is little of a DEI rollback and much of a reframing, she said, wherever investors are “prioritizing treatment connected performance,” adjacent though “the underlying accidental remains unchanged.”

She added, “Expanding entree to overlooked founders continues to aboveground high-quality deals, making this little astir DEI and much astir arbitrage investing.” She believes investors successful Canada inactive spot “inclusive investment” arsenic bully for the ecosystem and afloat of perchance lucrative concern opportunities.

The firm’s thesis is rooted successful the content that “overlooked markets and divers lived experiences tin unlock outsized task opportunities,” Birikundavyi said. The steadfast launched successful 2021 and raised $22 cardinal for its Fund I (which Birikundavyi said is performing amended than astatine slightest 75% of the different funds launched astir the aforesaid time). She said BRK Capital hopes to marque its last adjacent for Fund II successful December and put successful 25 companies.