The University of Toronto and McMaster University have joined forces with VC firm Genesys Capital to establish the life sciences-focused Genesys University Seed Fund, securing more than C$30 million at launch.
The two universities have invested in the fund, which has a target size of C$40 million. The Temerty Foundation, a major donor to Toronto’s Temerty Faculty of Medicine, has also backed the Genesys University Seed Fund.
Local paper The Globe and Mail has put the size of the commitments at C$5 million for McMaster and as much as C$8 million for Toronto (up to 20% of the target size).
Venture Ontario, on behalf of the Ontario government, is said to have committed C$10 million, while the Royal Bank of Scotland is also among the limited partners.
The Genesys University Seed Fund will focus on early-stage life sciences spinouts that address critical health challenges and improve patient care.
It will specifically aim to keep more founders in Ontario, who may otherwise choose to relocate to the US because of a lack of early-stage capital.
Any returns generated by the fund for the two universities will be funnelled back into more research commercialisation activities.
McMaster previously launched the McMaster Seed Fund in 2021, focusing on pre-seed investments. It has deployed C$4.3 million and capped individual ticket sizes at C$250,000.
Susan Tighe, president of McMaster University, says: “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.”
Canadian institutions have been ramping up their venture fund activities over the past few months.
Research institute Mila established the Venture Scientist Fund in January; the University of British Columbia created the UBC Catalyst Ventures Fund in March; and Simon Fraser University unveiled the SFU Innovates Venture Fund in May.
In April, the Business Development Bank of Canada also returned to direct life sciences investments after seven years, and recruited Parimal Nathwani, who had led commercialisation firm Toronto Innovation Acceleration Partners.
