Supporters say the tech industry should focus on crossover initiatives, community and access to capital.
While the climate around diversity, equity and inclusion (DEI) has changed dramatically this year, community leaders say they see a more sustainable and robust model for supporting Black Canadian founders.
The chilling effect on DEI initiatives spilled to Canada after the re-election of US President Donald Trump, as multinational corporations rolled back equity-related practices and programs they adopted just a few years ago.
“For many founders outside of major hubs, a ‘friends and family’ round that encourages early growth is simply not an option.”
“Unfortunately, some of these attitudes are being adopted by corporate Canada,” Alfred Bergesson, CEO and founder of Halifax-based Tribe Network, said in an interview. “They feel like they can’t speak up loud enough to support the communities they support.” Tribe Network provides resources, mentorship opportunities and networking events primarily for Black Canadian tech founders.
While proponents say the shift in Canada has been less pronounced, it has still manifested itself in the end of certain support, such as Shopify's entrepreneurship programs for Local And Black entrepreneurs, and the nonprofit fundraising landscape became more difficult under Black's leadership.
“Their mandates have changed and their desire to have that impact has changed because the public's focus has shifted away from that,” Phil J. Joseph, founder of the Montreal-based grassroots organization Rep Matters and senior fellow at Real Ventures, told BetaKit. Rep Matters hosts networking and educational events for Black founders with the goal of increasing their representation in Canadian technology and venture capital.
As swift as the response to diversity has been, a significant portion of Canadian tech companies have resisted abandoning these values, and hundreds of members of the ecosystem have signed on. open letter calling it the “wrong direction” for Canada.
Burgesson, Joseph and others are encouraged by the success they see among people using their services. They are also relieved to see continued support from the Canadian government in the form of a $189 million extension of the agreement. Black Entrepreneurship Program. There is a “deep sense of resilience” in the community, Joseph said.
Tribe Network is committed to expanding its reach across Canada and has supported more than 500 founders this year, according to its latest impact report. He also pursues his Venture fund with capital of 20 million dollarswhich Burgesson says still whets the appetite.
“We're seeing less interest in the social impact of this work and more emphasis on what that economic impact is,” Burgesson said.
CONNECTED: Feds commit $189 million to extend black entrepreneurship program
The few numbers available in Canada show that Black and racialized founders see lower levels of entrepreneurship and face funding gaps. Less than one percent of venture dollars have gone to Black-led Canadian companies since 2020, according to a joint study by RepMatters and BKR Capital. report. Separate report The Business Development Bank of Canada notes that 1.3 per cent of Black Canadian adults are entrepreneurs, compared to 2.3 per cent of the general population. Among black women, the percentage drops to 0.7 percent.
Lise Birikundawi, managing partner at BKR Capital, says Black founders point to two barriers: access to capital at the earliest stages and access to mentors, investors and corporate partners. capital crisis at an early stage The challenge for all Canadian entrepreneurs is “intensified” for underrepresented founders who cannot necessarily rely on institutional networks or intergenerational connections.
“For many founders outside of major hubs, a ‘friends and family’ round that encourages early growth is simply not an option,” she told BetaKit.
Creation of “connective tissue”
Proponents say a robust ecosystem for Black founders will emerge by creating “connective tissue” between government programs, funding sources and community organizations, rather than by keeping those parts separate.
“How can we ensure that we create a culture of government programs and innovation in a system that also embraces equity?” said Bergesson.
He added that he would like to see more cross-cutting initiatives, for example through the federal Strategic Innovation Fund or innovation clusters, where the government ensures that different communities use these resources. For example, Tribe Network has partnered with the Scale AI innovation cluster for Tribe AI Launchpad, an accelerator for early-stage artificial intelligence businesses that offers participants up to $50,000.
Birikundawi agreed, arguing that these cross-cutting initiatives could “break down silos” and allow funding and support to reach all regions and sectors.
For Joseph, it's a sense of belonging. “So that these Black founders can leverage resources at the same rate as other founders from other communities and be part of a cohesive innovation ecosystem.”
Image courtesy of RepMatters via LinkedIn.
