In recent years, the conversation around diversity in venture capital has gained momentum, particularly regarding the underrepresentation of Black entrepreneurs. According to a 2021 survey from Abacus Data, only 2% of VC funding went to Black-led businesses, and 76% of respondents noted that their race made it harder for them to succeed as a founder. Without questioning whether racial bias exists, I believe that Black founders can position themselves to achieve more.
My Journey into Venture Capital
My path into venture capital wasn’t a straight line. I spent over 15 years as a lawyer at a top-tier firm, advising nearly 100 startups and private equity firms. This gave me a front-row seat to the funding ecosystem and the challenges Black entrepreneurs face. With my legal background, an LLB, an MBA in Entrepreneurship and Finance, and an LLM in International Business Law, I led the team that drafted Nigeria’s Startup Act. I contributed to the Securities and Exchange Commission’s framework for fintech. This fueled my passion for addressing systemic challenges through venture capital.
One of my first investments in Canada was in a tech-enabled car wash business started by a Black entrepreneur. After facing difficulty securing a job despite his skills in finance, he took the bold step of acquiring real assets. I became the only Black investor in his venture, helping him transform the car wash into an automated business, introducing high-tech sensors, digital payments, and advanced water recycling systems. The success led to the acquisition of two more car washes within a year, with more investors joining in.
Another meaningful investment was in a Nigerian healthtech startup that leverages technology to improve healthcare access in underserved communities. My early backing, alongside others, helped the company scale rapidly, providing affordable healthcare solutions and improving health outcomes in marginalized areas. These stories highlight how targeted investments can create financial returns and drive social change in Black communities, often underserved by traditional investors.
Overcoming Challenges
As a Black investor, I faced significant hurdles, particularly in gaining access to capital and networks. Venture capital has historically favoured established players, making it difficult for diverse voices to break through. However, I leveraged my legal expertise and built connections with networks that prioritize diversity. This journey led me to establish Nubia Capital, a venture fund dedicated to tech-enabled startups led by Black entrepreneurs. My focus has been on providing the capital and mentorship necessary for these founders to thrive.
Mentorship has also been an essential part of my journey. I believe in giving back and closing the knowledge gap within the venture capital ecosystem. Through platforms like Techstars, I mentor young Black founders, helping them navigate the challenges of raising capital and scaling their operations.
Key Strategies for Black Founders to Attract Investors
Attracting investors as a Black founder can be daunting, but several strategies can make a significant difference:
- Build a Strong Network
Networking is crucial. Founders should engage in industry events, pitch competitions, and platforms like LinkedIn to meet potential investors, mentors, and partners. Joining accelerators, incubators, or angel networks that focus on diversity can provide funding, mentorship, and access to wider investor networks. - Develop a Clear and Compelling Pitch
A well-crafted pitch is key to attracting investors. Founders must clearly articulate their value proposition, the problem their business solves, the market size, and their competitive advantage. The pitch should include realistic financial projections, proof of market demand, and a path to scalability. - Demonstrate Traction and Highlight Unique Insights
Investors want to see evidence of business traction, whether through sales growth, user acquisition, or partnerships. Black founders can also leverage their unique perspectives and backgrounds as competitive advantages, framing diversity as a business asset that helps identify niche markets and innovate inclusively. - Be Investor-Ready with Strong Financials
Financial readiness is essential. Founders must prepare detailed financial statements, clear cash flow projections, and demonstrate an understanding of key metrics like customer acquisition cost (CAC) and lifetime value (LTV). Being investor-ready boosts credibility and increases the likelihood of securing funding. - Partner with Like-Minded Investors
Founders should seek investors who share their vision and values. Collaborating with socially conscious investors can provide capital, strategic support, and mentorship. - Storytelling with Purpose
A compelling narrative adds a human element to a pitch, helping to create emotional connections with investors. Whether it’s about community impact or solving an underserved market need, storytelling differentiates businesses and makes a lasting impression.
When evaluating investments, I prioritize strong leadership, solving fundamental pain points, scalability, innovation, and a tangible community impact.
Shaping the Future of Black Wealth Creation
The future of Black wealth creation lies in increased entrepreneurship and innovation within the community. My goal is to play a pivotal role in this journey by continuing to invest in Black-owned businesses and mentoring future leaders. I believe that targeted investments, like those I’ve made in certain businesses, can create both financial success and social change.
As a Black investor, advocating for diversity remains central to my role. I’m committed to financial returns and creating systemic change that fosters economic empowerment in historically marginalized communities. Through Nubia Capital and beyond, I hope to continue breaking barriers and building pathways for Black entrepreneurs, ultimately contributing to broader economic growth across Canada, Nigeria, and beyond.
