Black Women Founders Propel Canada’s Venture Capital Landscape

A new wave of Black women founders is reshaping the venture capital landscape in Canada, addressing historical disparities and driving economic change. Recent data highlights a significant increase in venture capital funding for women-led startups, with a notable focus on Black women entrepreneurs. This transformation is led by figures such as Amoye Henry, co-founder of Pitch Better, a startup dedicated to training entrepreneurs to build sustainable businesses.

Five years ago, Henry published an article detailing the stark reality that Black women founders in Canada had raised virtually no venture capital. Her work ignited important conversations within the investment ecosystem, prompting a closer examination of systemic barriers faced by these entrepreneurs. Since then, Henry has gained valuable international experience in the venture ecosystems of the UK and West Africa, where she witnessed first-hand the impact of intentional inclusion in investment practices.

Shifts in Investment Trends

The global venture capital scene has seen substantial changes over the past decade. Between 2014 and 2023, venture capital deals involving female-founded companies increased by nearly 60 percent. Despite this growth, women-led startups still captured only about 2 percent of global venture funding as of 2023. In Canada, a report from the Canadian Venture Capital Association (CVCA) revealed that in 2021, women-led startups received just 4 percent of total venture capital investment. By mid-2024, this figure had tripled to 12 percent, indicating a significant yet still fragile upward trend.

As data points to incremental progress, the real change is reflected in the stories of Black women founders who are actively redefining the venture ecosystem. Their journeys are not anomalies but rather indicators of a shifting market, showcasing the potential of capital when it reaches marginalized communities.

Pioneering Entrepreneurs Leading the Charge

Six Black women founders have recently emerged as leaders in their respective fields, each raising over $1 million through various funding avenues. Their ventures span critical sectors, demonstrating not only resilience but also a commitment to innovation and community impact.

Farnel Fleurant founded Workind, a modern benefits platform designed to enhance employee well-being while fostering community connections. Despite the challenges of securing funding as a racialized woman in Canada’s tech landscape, Fleurant’s company raised $1.4 million and achieved year-over-year growth of 30 percent.

In the realm of education technology, Karine Bah Tahe launched Oasis Learning to address communication barriers in a globalized workforce. With over $1.2 million in funding, her company is evolving rapidly, providing multilingual learning tools that adapt to diverse organizational needs.

The healthcare sector is being transformed by Nanette Sene and Lynn Doughane, founders of Juno Technologies, which is developing a medical device to alleviate menstrual pain. Their venture has already raised $1.5 million and is preparing for clinical trials, reflecting a commitment to addressing women’s health issues.

In Calgary, Gloria Oppong identified the potential to modernize the cleaning industry with her startup, Cleanster, which has raised $4.1 million to provide a reliable, technology-driven platform for cleaning services.

Meanwhile, Cynthia Ene is pioneering sustainable materials with Corol Technologies, focusing on plant-based bio polyols that replace fossil fuels in manufacturing. Her company is positioned to meet global sustainability demands.

Finally, after a successful corporate career, Claudette McGowan founded Protexxa to address cybersecurity challenges faced by small and medium-sized enterprises. Her startup aims to make enterprise-grade cybersecurity accessible and has already secured $10 million in funding.

The collective efforts of these founders signify a movement towards greater representation and equity in the venture capital landscape.

A Call for Structural Change

Despite the progress made, significant gaps remain. The Business Development Bank of Canada (BDC) is taking steps to address these disparities through initiatives such as the $35 million Thrive Lab, aimed at co-investing alongside women-led businesses, and the $50 million Thrive ETA initiative, which supports women in acquiring established companies.

The need for structural change is clear. Achieving equity in venture funding requires expanding the number of diverse investors and creating accelerators specifically designed for Black women founders. Furthermore, mandating government-backed data collection will enhance transparency and accountability within the investment ecosystem.

The narrative surrounding Black women founders is shifting from one of invisibility to recognition. Their contributions are not mere side projects but are crucial to Canada’s economic future. Investors, policymakers, and corporate partners must act decisively to support these entrepreneurs, ensuring that their success becomes the norm rather than the exception.

As Canada moves forward, the focus must remain on fostering an inclusive innovation ecosystem that values diverse talent. The question now is not whether Black women founders are investable, but whether the country will seize this moment to lead in creating a more equitable venture capital landscape.