BKR Capital raises CA$20M for second fund targeting Black founders

On Monday, Canada-based venture capital firm BKR Capital announced that its Fund II has closed CA$20 million (around $14.5 million). The firm is targeting a total of CA$50 million for the fund, which is designed to invest in high-growth technology companies led by Black founders. While BKR Capital is primarily looking at Canada, it remains open to backing select companies globally.

The fund’s financial structure includes:

• Current closed amount: CA$20 million (around $14.5 million)
• Total target amount: CA$50 million
• Fund I raised amount: $22 million

The firm, which launched in 2021, hopes to make its final close for Fund II in December and plans to invest in 25 companies. Managing partner Lise Birikundavyi stated that the average check size will be between $250,000 and $1.5 million. The fund is looking to back high-growth technology companies led by founders from the Black community who are building solutions for the future of work, living, and global connectivity, Birikundavyi told TechCrunch.

According to Birikundavyi, almost 70% of the Black population in Canada consists of first- or second-generation immigrants. She noted that this demographic reality results in founders who build globally from day one, unlocking early access to international markets and creating a structural advantage in scaling.

Birikundavyi framed the firm’s strategy as a form of arbitrage investing rather than traditional diversity, equity, and inclusion (DEI) initiatives. She noted that while many U.S. firms have shied away from openly advertising diversity-focused missions due to fears of a DEI rollback, BKR Capital does not share those exact concerns. Instead, Birikundavyi explained that the Canadian market is experiencing a reframing where investors are prioritizing discussion on performance, even though the underlying opportunity remains unchanged.

“Expanding access to overlooked founders continues to surface high-quality deals, making this less about DEI and more about arbitrage investing,” said Birikundavyi, managing partner of BKR Capital. Under this thesis, the firm operates on the belief that overlooked markets and diverse lived experiences can unlock outsized venture opportunities. She believes investors in Canada still see inclusive investment as good for the ecosystem and full of potentially lucrative business opportunities. The firm’s Fund I, which raised $22 million, is currently performing better than at least 75% of other funds launched around the same time.

Why it matters

BKR Capital’s approach highlights a shift in how inclusive investment is framed—moving away from DEI-centric narratives toward performance-based arbitrage in overlooked markets.