Toronto-based BlackTech Capital has officially launched its Catalyst fund, an early-stage cleantech vehicle aimed at founders who are traditionally underrepresented in the technology sector. The firm announced a first close of $500,000 toward a target of $2 million CAD, with plans to complete the round before the end of the year. Its anchor investors include Dragonfly Ventures, BKR Capital, and several high-net-worth individuals.
Fund Launch and First Close
The Catalyst fund is structured as a micro venture fund, a format BlackTech Capital selected partly to pursue the outsized returns that smaller vehicles can produce. It also allows the firm to attract investors with a more accessible minimum cheque size during a difficult fundraising period for emerging managers. The initial close was supported by Ontario-based impact investing family office Dragonfly Ventures, Canada's largest Black-led venture capital fund BKR Capital, and individual backers.
Investment Thesis and Focus
BlackTech Capital intends to back early-stage cleantech companies led by founders who have been consistently overlooked despite strong teams, technology, and intellectual property. Co-managing partner Keyona Meeks said the fund aims to generate venture fund returns while showing the market what underrepresented founders can deliver. The Catalyst vehicle is designed to lead by example rather than simply discuss the gap in funding.
Challenges in Canadian Venture Capital
Founded in 2021, BlackTech Capital set out to address the persistent funding gap for Black founders and other underrepresented groups in Canada. The 2025 Black Startup Funding Report, released by BKR Capital and Rep Matters, found that only 0.15 percent of all venture capital deployed in the country last year went to Black founders. The BlackTech Capital team recently completed BKR Capital's Launch Readiness Program, which provides mentoring to Black-led fund managers.
Accessible Investment Model
The fund operates through Equivesto Canada, an angel investment and online equity crowdfunding platform. This structure allows BlackTech Capital to raise money with minimum cheque sizes of $10,000, creating a more accessible entry point for individual investors. Co-managing partner Bryan Duarte noted that some investors are more willing to explore early-stage venture investing when they can participate at that level.
Early Portfolio Allocations
BlackTech Capital has already invested in four cleantech companies as part of its initial portfolio. These include Serenity Power, which is developing low-emission power systems using solid oxide fuel cells, and Kiwi Charge, which makes an electric vehicle charging robot. The firm expects to complete two additional investments before the end of the year.
Future Plans and Representation Targets
BlackTech Capital aims to maintain a deliberate focus on diversity across its portfolio. The firm intends to keep half of its portfolio companies woman-founded. This target aligns with its broader mission to direct capital toward founders who often face barriers in accessing institutional funding, and it reinforces the fund's cleantech investment focus.
The Catalyst fund represents a targeted effort to combine venture-scale returns with a commitment to inclusive investing. By lowering the investment threshold and concentrating on early-stage cleantech innovation, BlackTech Capital hopes to demonstrate the potential of founders who are frequently overlooked. The coming months will reveal whether this accessible model can help shift more capital toward diverse teams in Canada's climate technology sector.
Source: Betakit