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).