Global Courant 2023-05-03 13:00:20
It wasn’t much time, but Emmanuel Akindele made the most of his three minutes in the spotlight.
Along with six other tech entrepreneurs, Akindele recently stood in front of a crowd of 200 people and a jury to pitch his company as the clock ticked.
“It’s hard, but it reflects what it’s like as an entrepreneur,” says Akindele, who co-founded a mental health app called Blue Guardian. “You often have very little time to tell the story of why people should care about what you’re building.”
At stake was $20,000 in funding in the competition held April 20 by the DMZ, an incubator for technology companies at Toronto Metropolitan University (TMU).
The match was part of the DMZs Black innovation topan event to promote the organization’s Back Innovation Programs (BIP).
Of venture capital funding plummets and black founders who traditionally face greater challenges than other groups in raising money, several incubator programs in Canada are trying to help black tech entrepreneurs survive the startup phase.
BIP’s goal is to nurture and grow black tech companies, help them sharpen their ideas, find mentors, and connect with investors.
According to recent studies by the government and the Canadian Black Chamber of Commerce, poor access to capital and the lack of advisers or a business network are key factors holding back black business owners across all industries.
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Incubators essential to support Black technology
The BIP was founded in 2019 by DMZ, who says the program was Canada’s first effort targeting Black Tech entrepreneurs.
“There is a huge need for these types of programs,” said Tina Mbachu, a senior program leader at DMZ.
In addition to the structured business development assistance, Mbachu says bringing black entrepreneurs together can create a powerful sense of community for founders who may have previously felt isolated.
“I can empathize with their life stories, I can empathize with the challenges, and we can pick solutions apart.”
Tina Mbachu, a senior program leader at DMZ’s Black Innovation Programs, says there is a huge need for incubators to help nurture tech entrepreneurs from the black community. (Heather Waldron/CBC)
Since the DMZ began its program for Black Tech founders, similar efforts have followed.
Innovate Calgary, part of the University of Calgary, ran a competition last year to help raise the profile of Black Tech entrepreneurs, and one for BIPOC Women in Technology this spring. The finalists of both competitions received business support from experts.
Last year, the Edmonton-based non-profit Black Business Ventures Association (BBVA) also started. a 12-week accelerator program for Black-led tech startups based in the Prairies and British Columbia.
Investments are a problem for many black-owned companies
The issues faced by Black Tech founders also face other business owners in the Black community.
Support for black businesses increased as the Black Lives Matter movement gained momentum following the 2020 murder of George Floyd by a Minneapolis police officer.
But recent venture capital reports show that market conditions are admittedly poor in 2022 led to a 36 percent drop in total venture capital investment, black entrepreneurs saw funding fall by 45 percent.
According to market research firm Crunchbase, between 2017 and 2022 Black founders never received more than 1.3 percent of U.S. risk financeeven in 2021, a record year for venture capital in general.
To help, the Black Opportunity Fund (BOF) investment program was established in 2020 Black entrepreneurs in Canada are raising money and address inequalities in accessing capital.
The BOF also supports mentorship and incubator programs in conjunction with the Canadian Black Chamber of Commerce.
2021 the University of Toronto created the Black Founders Network to provide “alliance, mentorship and sponsorship” to black student founders there, in “every industry and at every stage”.
Marc Lafleur, who sold TruLocal, his online meat products subscription service, for nearly $17 million, was recently at the Black Innovation Summit to share the story of his success and answer questions from the public. (Heather Waldron/CBC)
Share success stories
Marc Lafleur, the former CEO of TruLocal, was at the Black Innovation Summit to share the story of his success and answer questions from the public.
Lafleur co-founded the online meat product subscription service in 2016 and sold it in December 2022 for nearly $17 million.
He agrees that black entrepreneurs have a hard time raising money for their businesses, in part because there aren’t many black investors.
“At the end of the day, the VC industry is known to be, you know, pale, stale and manly. And you know, traditionally people are going to invest in people they can identify with,” Lafleur said.
While he believes that hearing “no” can help bolster black entrepreneurial resolve, Lafleur also says he wished there was something like the black innovation programs when he founded TruLocal.
Lafleur, who failed two companies before his third succeeded, also says it’s essential to celebrate role models with events like the summit.
“If we can showcase and highlight more success stories from black founders who have done it, it will inspire more black youth to do business today.”
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Helping small businesses think big
At the Black Innovation Summit, Akindele, the 22-year-old entrepreneur with mental health app Blue Guardian, took 1st place in the pitch competition.
This week he launched the app aimed at helping teenagers, available only on iPhones for now.
Using artificial intelligence, Blue Guardian analyzes a phone user’s text messages and chats in social media apps, monitoring language patterns for signs of depression. If necessary, it provides users with resources to learn more about their symptoms and seek help.
Emmanuel Akindele poses with the check he received for first place in the pitching competition at the Black Innovation Summit in April. The 22-year-old launched his mental health app this week to help teens. (Heather Waldron/CBC)
Akindele and a partner spent three years building the app, bringing together funding from their alma mater, Western University, and a grant program hiring students for short-term work.
He says DMZ’s prize money is a “game changer” that will help make the launch a success.
Another game changer? The support that came with participating in DMZ’s six-month incubator program in 2021.
Akindele says successful entrepreneurs he met through DMZ inspired him to think bigger than just making a difference to mental health in Canada.
“Now, my vision is that we can just go ahead and change the world.”
(CBC)
