BKR Capital raises $14.5 million (so far) to invest in Black founders

Canadian firm BKR Capital announced Monday that its second fund has closed C$20 million (about US$14.5 million), bringing it closer to its C$50 million target.

This fund looks to support “high-growth technology companies led by Black founders, building solutions for the future of global work, living and connectivity,” managing partner Liz Perikondavi told TechCrunch. The company is primarily looking at Canada, although it is open to supporting select companies globally. The average check size will range from $250,000 to $1.5 million, she said.

Nearly 70 per cent of Canada’s Black population are first- or second-generation immigrants, “resulting in founders building their businesses globally from day one, unlocking early access to international markets and creating a structural advantage in scaling,” Perekondavi said.

Although many U.S. companies have shied away from publicly declaring a mission that can be seen as diversity, equity and inclusion (DEI), Perekondavi said her Toronto-based fund does not share these particular concerns. What’s happening in Canada is not so much a retreat from DEI as a reframing, she said, as “investors prioritize the discussion around performance,” even though “the fundamental opportunity remains unchanged.”

“Expanding access to overlooked founders continues to surface high-quality deals, making it less about DEI and more about arbitrage investing,” she added. She believes investors in Canada still see “inclusive investing” as good for the ecosystem and full of lucrative business opportunities.

The company’s thesis is rooted in the belief that “overlooked markets and diverse life experiences can open up significant opportunities for great investment projects,” Perekondavi said. The company launched in 2021 and has raised $22 million for its first fund (which Perekondavi said has performed better than at least 75% of other funds launched around the same time). BKR Capital hopes to finally close the second fund in December and invest in 25 companies, she said.