University of Toronto and McMaster launch life sciences seed fund
Genesys University Seed Fund has held a first close of more than $30 million to support early-stage university-linked health startups in Ontario.
The University of Toronto and McMaster University have partnered with Venture Ontario and Genesys Capital to launch the Genesys University Seed Fund.
The University of Toronto and McMaster University have partnered with Venture Ontario and Genesys Capital to launch the Genesys University Seed Fund, a new early-stage venture capital fund for life sciences startups in Ontario.
The fund has held a first close representing more than $30 million of commitments, with support from backers including the University of Toronto, McMaster University, the Temerty Group, Venture Ontario and RBC.
Genesys University Seed Fund will invest in fledgling life sciences companies, with a focus on translating university-based research and commercial ideas into startups working on health challenges, patient care and Canadian jobs.
The fund will be managed by Genesys Capital, a Canadian life sciences venture capital firm that has invested more than $400 million over the past 25 years. Genesys Capital works with biotechnology, pharmaceuticals and medical technology startups, and has been a founding investor in companies with 20 exits representing billions in value.
The University of Toronto said the fund is intended to address a shortage of early-stage investment capital for Ontario life sciences companies, a gap that can push Canadian founders to relocate to places such as Boston and Silicon Valley.
Universities target early-stage capital gap
Ontario has nearly 76,000 skilled workers across more than 2,000 life sciences firms, but the University of Toronto said access to early-stage investment still trails other jurisdictions, particularly in the United States.
The new seed fund follows models used by American universities including MIT, the University of Pennsylvania, the University of California, Berkeley and Harvard University, where early-stage capital is used to help research-led companies stay close to university ecosystems.
University of Toronto President Melanie A. Woodin frames the fund around Canada’s ability to keep discoveries moving beyond research settings: “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,” she said. “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.”
McMaster President Susan Tighe says the fund builds on the university’s research and commercialization work, including its experience with the McMaster Seed Fund.
“It’s a pivotal time for universities to contribute to Canada’s prosperity,” Tighe comments. “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.”
Genesys Capital to manage fund
Genesys University Seed Fund will be overseen and managed by Genesys Capital, which has previously supported health startups connected to both the University of Toronto and McMaster University.
Kelly Holman, co-founder and managing director of Genesys Capital, says early-stage capital is central to turning life sciences research into companies: “Access to capital is the lifeblood of any healthy economy, especially in a high-tech area like the life sciences.
“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.”
As limited partners, the University of Toronto and McMaster University will direct returns from their investments back into research and innovation at the two universities.
The universities cited existing entrepreneurial and health sciences activity across both institutions, including startups such as Fusion Pharmaceuticals, Deep Genomics, AmacaThera, NodeAI, Profound Medical, Biossil, Kapoose Creek and AtomVie.
Over the past five years, the University of Toronto has created more than 1,500 venture-backed startups, which have raised more than $14 billion and created more than 20,000 jobs. The university also has 13 accelerator hubs across three campuses, and its Health Innovation Hub includes more than 340 active ventures.
McMaster said it has supported nearly 400 startups. Those include Fusion Pharmaceuticals, which was acquired by AstraZeneca in 2024 for $2B USD.
Ontario backs commercialization push
Venture Ontario is backing the fund as part of its mandate to attract and retain life sciences talent and generate further investment in the province.
Vic Fedeli, Ontario minister of economic development, job creation and trade, adds that the fund is designed to help more companies move from research to commercialization: “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.
“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.”
Genesys University Seed Fund is accepting additional investment from private and public sector investors to increase the fund size up to $40 million.
