U of T, McMaster Announce Early-Stage Life Sciences Venture Fund With Genesys Capital

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TORONTO — In a move that will provide a major boost to life sciences startups in Ontario and the Canadian health economy overall, the University of Toronto, McMaster University and Venture Ontario announced they are joining with veteran investor Genesys Capital to create a new life sciences venture capital fund.

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The Genesys University Seed Fund will be a vital source of early-stage capital for fledgling startups, helping to translate promising university-based commercial ideas into viable companies that address critical health challenges, improve patient care and create cutting-edge Canadian jobs. To date, the fund has received support from several backers including U of T, McMaster, the Temerty Group, Venture Ontario and RBC, and it has held a first close representing over $30 million of commitments.

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“If Canada is going to meet the moment in driving greater innovation, it is vital that Canadian discoveries don’t stall at the lab door,” remarked U of T President Melanie A. Woodin. “Canada has no shortage of ideas or talent; what we lack is the capital to scale them. That’s why the University of Toronto is proud to work with Genesys Capital on the creation of this exciting new catalyst for life sciences startups, which will enable promising research to grow into companies that improve care, create jobs and attract investment here at home.”

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“It’s a pivotal time for universities to contribute to Canada’s prosperity,” said McMaster President Susan Tighe. “With a strong foundation in bench-to-bedside research and deep collaborations across institutions, we are well positioned to translate discoveries into companies that improve health care and save lives. Building on the early success of the McMaster Seed Fund, this partnership with Genesys and other investors will help scale these efforts — fuelling a thriving life sciences cluster and driving economic growth across our region.”

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With nearly 76,000 skilled workers in more than 2,000 firms, Ontario enjoys one of the largest life sciences clusters in North America. However, it trails other jurisdictions — particularly in the United States — when it comes to access to early-stage investment capital. The result is that many of Canada’s promising life sciences innovators are opting to relocate to places like Boston and Silicon Valley to get their companies off the ground.

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The Genesys University Seed Fund addresses this critical gap. By providing early-stage life sciences companies with access to venture capital, U of T and McMaster are following similar models at American universities such as MIT, the University of Pennsylvania, the University of California, Berkeley and Harvard University. The result will be a higher number of university-affiliated life sciences startups choosing to stay and grow in Ontario, bringing innovations to benefit patients and spur economic growth.

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“Ontario is home to one of the most dynamic life sciences ecosystems in North America, and access to early-stage capital is essential to maintaining this advantage,” said Vic Fedeli, Ontario minister of economic development, job creation and trade. “Through Venture Ontario, our government is proud to support an initiative that will bridge the gap from breakthroughs to commercialization by bringing together leading investors and research institutions. By helping more life sciences companies start, scale and succeed in Ontario, we are unlocking the full power of our economy and safeguarding the long-term competitiveness of this critical sector.”

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The seed fund will have a positive long-term impact across the province by enabling Ontario to attract and retain more life sciences talent as well as generate additional investment to grow the sector — a key part of Venture Ontario’s mandate.

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“Venture Ontario is proud to help anchor this early-stage life sciences fund, bridging the gap between world-class university research and the development of life sciences treatments, therapies and devices,” added Steve Romanyshyn, president and CEO of Venture Ontario. “By backing local talent with vital capital, we are driving both societal benefits and strong economic returns. This initiative signals to domestic and global investors that Ontario and Canada are premier destinations for high-impact innovation.”

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The fund will be overseen and managed by Genesys Capital, one of Canada’s leading life sciences venture capital firms, with more than $400 million invested over the past 25 years. Genesys Capital is an active partner in biotechnology, pharmaceuticals and medical technology startups, with 20 exits representing billions in value as a founding investor.

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“Access to capital is the lifeblood of any healthy economy, especially in a high-tech area like the life sciences,” said Kelly Holman, co-founder and managing director of Genesys Capital. “Genesys Capital has been proud to support many cutting-edge health startups including companies coming out of U of T and McMaster. This early-stage venture fund will elevate this work to exciting new heights.”

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The fund will also build momentum from its success. As limited partners, the University of Toronto and McMaster University will direct returns on their investments to support further research and innovation at the two universities. In turn, this will spur even more startup activity in a positive cycle.

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“Researchers at Ontario’s world-class universities are renowned for producing some of the world’s brightest life sciences discoveries that save and improve lives,” said Nolan Quinn, Ontario minister of colleges, universities, research excellence and security. “The Genesys University Seed Fund will ensure that the life sciences startups emerging from Ontario’s universities have the resources they need to turn their ideas into solutions that create jobs, drive our economy and further cement our province as a global leader in innovation.”