McMaster University has partnered with the University of Toronto, Venture Ontario and veteran investor Genesys Capital to create a new life sciences venture capital fund, providing a major boost to Ontario life sciences startups and Canada’s health innovation ecosystem.
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 McMaster, U of T, the Temerty Group, Venture Ontario and RBC, and has held a first close representing over $30 million of commitments.
“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.”
“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,” said 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.”
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 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.
The Genesys University Seed Fund addresses this critical gap. By providing early-stage life sciences companies with access to venture capital, McMaster and U of T are following similar models at American universities such as MIT, UPenn, UC Berkeley and Harvard. 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.
“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, 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.”
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.
“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.”
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.
“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.”
The fund will also build momentum from its success. As limited partners, McMaster University and the University of Toronto 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.
“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, 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.”
McMaster University and the University of Toronto share a strong entrepreneurial and health sciences track record spurring cutting-edge startups such as Fusion Pharmaceuticals, Deep Genomics, AmacaThera, NodeAI, Profound Medical, Biossil, Kapoose Creek, AtomVie and many others.
McMaster is globally recognized for translating research into real-world impact, having supported nearly 400 startups, including Fusion Pharmaceuticals, acquired by AstraZeneca in 2024 for $2B USD — one of the largest university-linked exits in Canadian history and a catalyst for the growth of a regional radiopharmaceutical cluster.
Driven by world-class research, a distinctive problem-based learning culture, and deep integration with hospital partners — Hamilton Health Sciences and St. Joseph’s Healthcare — McMaster students, researchers, and faculty work closely with clinicians to accelerate the path from discovery to impact.
U of T has, over the past five years, created more than 1,500 venture-backed startups that have raised over $14 billion and created over 20,000 jobs. With 13 accelerator hubs across three campuses, the university is top five in the world for university business incubators and 10th worldwide for universities powering global innovation. The university is particularly active in life sciences startups — the Health Innovation Hub (H2i) includes more than 340 active ventures.
The Genesys seed fund will further underline Ontario as a major destination for life sciences commercialization and is currently accepting additional investment from private- and public-sector investors to increase the fund size up to $40 million.