Broken promises?

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Written By Hanh Le

4 min read · February 28, 2025
New Power Labs

In 2020, the gap in capital for Black leaders and communities was undeniable. Promises were made. Commitments to increase capital to Black leaders were publicized.

The momentum hasn’t been sustained over the last few years. 

Black Canadians make up 4.3% of the population, and Black-owned businesses represent just 2.4% of all businesses. 

BKR Capital research found that Black founders in Canada received a median of 0.8% of total venture capital investment over the past three years. Philanthropic and impact investments remain minimal and untracked, while Black founders and communities continue to experience challenges in accessing financial services and debts. 

In the U.S., investments into Black founders reached 1.5% of total venture capital in 2021, and this share dropped steadily to 0.48% in 2023, and 0.4% in 2024. 

While some are trying to push the narrative that the pendulum has shifted too far, data indicates a different reality. 

Black representation and entrepreneurship in Canada

In Canada, the Black population represents 4.3 percent (1.6 million) of the total population of 36.9 million, according to the 2021 Census. 

According to Statistics Canada, an estimated 144,980 businesses in Canada were Black-owned in 2020, accounting for 2.4% of all businesses nationwide.

How is capital flowing to Black leaders, founders, and communities?

Philanthropy 

From the top 10 foundations, only 0.03% of funds were disbursed to Black-led organizations and 0.13% to Black-serving organizations between the years 2017 and 2018. (Network for the Advancement of Black Communities & Carleton University, 2020). 

There is no updated data on philanthropic funding to Black-led or Black-serving organizations. 

Impact investing

Data specific to impact investment for Black leaders in Canada is not available.

Access to financial services and debt

  • 74% of Black Canadians hold high-interest debt. Among all groups surveyed, only 63% of Black Canadians reported being able to access products from their primary financial institutions - the lowest of all groups. (DUCA Impact Lab, 2020)

  • According to a national survey by the Black Entrepreneurship Knowledge Hub (BEKH), 46.8% identified limited access to affordable loans or credit as the biggest challenge when starting their business (BDC, 2025).

  • In the U.S., 14% of Black households reported having no bank accounts, compared to 3% of white households. (Board of Governors of the Federal Reserve Systems, 2020)

Entrepreneurship

  • 83.2% of Black entrepreneurs relied on personal finances to start their businesses, compared to 76.4% of all SMEs. (Statistics Canada, 2020).

  • 76% of Black entrepreneurs believe that systemic racism affects their success — a sentiment that is underscored by multiple studies showing traditional under-investment in Black-led ventures (Abacus Data, 2021).

Venture capital

  • Only 0.4% of Black entrepreneurs secured funding from angel investors or venture capital providers, compared to 0.9% for all SMEs (Statistics Canada, 2022).

  • Over the past three years, Black founders in Canada have received a median of just 0.8% of total venture capital investment  (BKR Capital, 2025). 

  • In the US, venture capital funding for Black-founded startups dropped to only 0.4% in 2024, a decline of more than two-thirds compared to three years ago (Crunchbase, 2025). In 2021, 1.5% U.S. venture capital went to Black-founded startups. In 2022, it was 1.1%; and 2023 was 0.48% (Crunchbase, 2024).

Narinder

New Power Labs

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Hanh Le
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