University of Toronto and McMaster University have partnered with Genesys Capital to launch a $40-million venture fund aimed at supporting life sciences startups, particularly spinouts from both institutions.

The fund, which includes contributions from the Ontario government, the Temerty Foundation, and Royal Bank of Canada, targets medical devices and therapies for cancer, heart, and brain ailments.

This initiative addresses the longstanding issue of Canadian research being commercialized abroad, with universities seeking to retain economic benefits within the country.

The fund marks a shift in Canadian institutional investment toward domestic life sciences ventures, following similar efforts by institutions like MIT and UC Berkeley.

Universities aim to bridge the gap in early-stage funding, leveraging technology transfer revenues to support innovation while ensuring societal and economic impact remains local.The initiative also highlights Canada's need for more domestic capital in life sciences, as compared to U.S.peers who generate significantly higher licensing revenues.