EntrepreNorth, a Yellowknife-based Indigenous business accelerator, has secured an $8-million initial close of its Sinew Impact Fund. The fund aims to provide risk capital to early-stage Indigenous startups with ties to Canada’s North.
Aurora Heat, a Fort Smith, NWT social venture specializing in eco-friendly, beaver fur warmers, has received the first loan from the newly launched Sinew Impact Fund.
The Sinew Impact Fund, managed by EntrepreNorth, targets Indigenous business owners with deep cultural or personal connections to Yukon, Northwest Territories, and Nunavut. It will extend financing options, such as loans, equity stakes, and revenue-sharing agreements, to Indigenous-led startups already generating income.
Investment Strategy
This Indigenous-managed fund will distribute between $50,000 and $1 million per investment and provide ongoing guidance from EntrepreNorth. According to Kristin Richard, co-founder and director of the Sinew Impact Fund, the initiative seeks to empower entrepreneurs at every stage while developing financial approaches aligned with Indigenous principles.
Richard explained that the remaining $2 million of the fund’s total capital is earmarked for Indigenous investors. Backers include a combination of Canadian philanthropies, private family investment groups, and impact-focused funds, such as the Mastercard Foundation and the Laidlaw Foundation.
Goals and Objectives
The fund’s primary goal is expanding financial access rather than maximizing profits, given the higher risk of leaving Northern communities without adequate funding. Richard estimates the fund will back 40 to 50 businesses, with an average investment near $250,000.
She pointed out that Northern regions lack sufficient local investment sources beyond government-backed agencies and Indigenous financial services, which often hesitate to take risks or move quickly with funding decisions.
As the Sinew Impact Fund moves forward, it may make some technology-related investments, particularly in areas like AI and data sovereignty. However, the fund does not plan to support firms developing weaponry, although it may invest in dual-use tech for defence and civilian applications.
Origins and Motivation Behind the Sinew Impact Fund
Richard said the concept for the fund began about six years before she joined EntrepreNorth. It originated from observing entrepreneurs in the accelerator’s growth program unable to secure capital. Those founders needed financing to expand and fully launch their businesses.
Background and Future Plans
EntrepreNorth, which gets its funding from government and private foundations, was founded in 2018 as a project of the MakeWay Charitable Society’s northern platform. Since then, the Indigenous-led hub has supported over 450 Indigenous entrepreneurs in or from Canada’s North with educational programming and mentorship.