Meet Lise Birikundavyi – the woman leading the first institutionally backed, Black-led VC fund in Canada

Meet Lise Birikundavyi. She is Principal and Fund manager for Black Innovation Capital, a CAD$10 million (US$8 million) venture capital (VC) fund that invests in Black-led tech start-ups, backed by BDC Capital, and launched in June 2021.

Birikundavyi is the first black woman to head a venture capital fund backed by an institutional investor in Canada. The fund is focused on investing in Canadian pre-seed and seed stage technology companies founded by Black entrepreneurs.

“Black entrepreneurs are underfunded and underrepresented in the North American venture capital and private equity markets,” says Isaac Olowolafe Jr., Founder and Managing Partner, Black Innovation Capital. “Unfortunately, this information is not tracked in Canada, but we know the situation is critical. Our goal is to help Black-founded tech companies thrive and we are thrilled to work with an experienced institutional investor like BDC Capital to help us reach that goal.”

“Unconscious bias exists everywhere, including in investing,” says Birikundavyi. “People typically invest in individuals and concepts they are familiar with, not always based on their values, experience or a sound business case. Our hope is to help build successful Black-led businesses, deliver returns to our investors, and increase the diversity in the venture capital ecosystem.”

“The fund is about economic empowerment, working with a population that is not receiving the funding it should, and wanting to help them create wealth that can be reinvested in the community. For us, it’s not about one community versus another, it’s about the greater participation of all communities in the VC space. It’s about diversity and inclusion and everyone contributing to a better system.

“On the part of the entrepreneurs, there is also sometimes a lack of awareness – they don’t know where to go for help. The investment communities are siloed and often lack diversity. That can lead to a lack of confidence for some Black entrepreneurs. Even if they have a good idea, they don’t necessarily believe others will be interested in it.

“From a role model perspective, it is really nice that Isaac and I represent a Black man and a Black woman leading this initiative. The goal is to change the perspective for younger generations and make them see that it is possible for them to do whatever they decide to do. We will be investing in companies that will eventually create massive success stories, and those leaders will become models of success as well.

Black Innovation Capital was created to address the long-existing need for more capital support for Canada’s Black entrepreneurs. Many have argued there needs to be more research on the challenges faced by Black entrepreneurs in Canada, however, the data that currently exists indicate that these entrepreneurs face significant and systemic barriers to doing business and accessing capital.

According to Birikundavyi, the fund is sector agnostic and looking to invest between US$150,000 and US$200,000 in pre-seed and seed-stage rounds, and approximately US$400,000 for follow-on investments. Birikundavyi said the goal is to invest in 18 companies over the fund’s 10-year timeline.