BKR Capital Secures $50M in Initial Close for Fund II Following Top Fund Performance

BKR Capital, a venture firm investing in Black-led and diverse founders, announced the first close of $20 million for its $50 million Fund II, the Black Innovation Fund II. This milestone follows the strong performance of its debut fund and highlights its commitment to inclusive innovation.

Proven Track Record Drives Investor Confidence

Fund I focused on early-stage technology startups in fintech, AI, cybersecurity, and enterprise software. According to reports, many of these startups have grown internationally. For example, portfolio company Protexxa expanded into nine countries, showing the global potential of BKR Capital’s investments.

“From the beginning, our thesis was clear — invest in exceptional founders overlooked by traditional networks,” said Isaac Olowolafe, General Partner at BKR Capital. “The strong performance of Fund I confirms that inclusive investing can deliver outsized returns.”

Institutional Backing Highlights Market Confidence

The Fund II first close attracted support from prominent investors including:

• Royal Bank of Canada
• BDC Capital (Business Development Bank of Canada)
• Export Development Canada (EDC)
• Boann Social Impact Fund
• Cap Finance Social Finance Fund

“BKR demonstrates that supporting underrepresented founders is both impactful and profitable,” said Paula Cruickshank, Senior VP at BDC Capital. “Their track record shows the value of specialized managers in Canada’s venture ecosystem.”

Driving Inclusive Innovation Across Canada

Co-Founder Lise Birikundavyi emphasized the untapped entrepreneurial potential:
“We’ve reviewed thousands of startups nationwide. Fund II allows us to support founders who have historically been overlooked, helping them scale globally.”

Alongside Fund II, the BKR Catalyst Institute provides training, mentorship, and networks for emerging investors. This initiative strengthens Canada’s venture ecosystem and enables sustainable participation by Black-led founders.

Looking Ahead: Fund II Momentum

BKR Capital is actively deploying Fund II capital, with initial investments completed and more deals in advanced due diligence. As the firm works toward its $50 million target, it continues to support innovation, diversity, and measurable financial performance in the Canadian technology landscape.

First close: $20M
Target Fund II: $50M
Impact focus: Black-led and diverse technology startups
Portfolio reach: Global expansion potential

Why this matters for investors and founders:

• Strong Returns: Fund I ranked in the top quartile for its vintage.
• Diverse Opportunity: Targets Black-led startups often overlooked by traditional venture firms.
• Global Impact: Portfolio companies are expanding internationally.
• Institutional Confidence: Supported by RBC, BDC, EDC, and other major investors.

“Investing with BKR Capital is about both impact and opportunity,” said Lissa Bjerkelund, VP at EDC. “They are redefining venture capital in Canada while empowering diverse founders to succeed.”