How is capital flowing to Black leaders and communities?

1 min read · Feb 23, 2024
New Power Labs

How is capital flowing to Black leaders and communities?

Black Canadians represent 4.3% of Canada’s population (StatCan, 2021). 76% Black entrepreneurs stated that systemic racism affects their success as entrepreneurs (Abacus Data, 2021).

Philanthropy: 0.13% of total grants made by public and private foundations were given to Black-serving organizations, and 0.03% were given to Black-led organizations (“Unfunded Report,” Network for the Advancement of Black Communities & Carleton University, 2018)

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

Venture capital: 

• Data specific to venture capital for Black entrepreneurs in Canada is not available. 

• 71% of Black business owners started their businesses by bootstrapping. There is limited familiarity with angel investing, venture capitalism and private equity (Canadian Black Chamber of Commerce, 2021).

• US venture funding to Black-founded startups dropped from 1.5% in 2021 to 0.48% in 2023. (Crunchbase, 2023).

Debt and access to financial services: 74% of Black Canadians hold high-interest debt. 63% of Black Canadians reported being able to access products from their primary financial institutions, lowest of all groups. 30% of Black Canadians who applied for a new credit product went to pay-day loans or private lenders. (DUCA Impact Lab, 2020).

Like what you’re reading? Subscribe to get weekly Equity Shots in your inbox.