Why seed-stage investment is the missing link in securing Ontario’s global leadership in life sciences.
Ontario’s Life Sciences ecosystem is a global research powerhouse. In fact, there is a recognized “Ontario advantage” for Life Sciences R& D with its top-quality research, advanced biomanufacturing infrastructure and high rates of collaboration across borders and sectors.
The impact is clear, with its contribution of $58B CAD in GDP, $8.8B CAD in taxes, and 90,000 highly skilled workers employed across 6,140 companies1, Ontario has achieved a world-class reputation.
Catalyzing Ontario’s Life Sciences Economy
Recognizing Ontario’s Investments and Achievements
Ontario’s government has recognized the immense potential of the province’s life sciences sector through significant initiatives and investments like:
- The $146M commitment to Phase 2 of the life sciences strategy showcase the government’s recognition of this sector’s transformative potential.2
- LSIF (Life Sciences Innovation Fund): $15M CAD to help entrepreneurs in
market entry.3 - IPON (Intellectual Property Ontario): $4.6M CAD to strengthen researchers’
IP capacity.4
A robust life sciences sector is not just an engine of economic growth and job creation; it’s vital to Ontario’s health security and the resilience of our healthcare system. However, to secure its leadership on the global stage, Ontario must confront a critical challenge: the gap in seed-stage funding.
“Ontario has built an incredible foundation in life sciences research and innovation, but we’re at a critical crossroads. Supporting early-stage life sciences companies drives a ripple effect, benefiting universities, research institutions, health systems, and supply chains across Ontario.”
Ontario is at a Crossroads: Remaining Competitive in a Changing Landscape
Ontario’s life sciences ecosystem is a cornerstone of its innovation economy, but other provinces and jurisdictions are outpacing us. Quebec and British Columbia are rapidly advancing their competitiveness with targeted initiatives like angel investor capital tax credits and pension fund investments.
Meanwhile, Massachusetts—whose ecosystem was once smaller than Ontario’s—is now a global leader after introducing strategic de-risking measures that led to exponential growth in venture capital funding and startup creation.
The Opportunity: Unlocking Ontario’s Economic Potential
By bridging the funding gap for seed-stage companies, we can:
- Retain and scale homegrown companies instead of losing them to U.S. markets.
- Create thousands of new, high-paying jobs in a sector that employs some of the most skilled workers in the world.
- Attract global venture capital, strengthening Ontario’s innovation ecosystem and tax base.
This investment isn’t just about helping individual companies—it’s about bolstering the entire ecosystem. Supporting early-stage life sciences companies drives a ripple effect, benefiting universities, research institutions, health systems, and supply chains across Ontario.
Call to Action: De-risking Early-Stage Investments for Long-Term Gains
The “funding desert” challenge is compounded for life sciences startups given higher risks in product development, significant R&D costs, stringent regulatory requirements and a comparatively longer path to market.
We know the early stages of company development are too risky for private capital alone, and that’s where the government must step in. Bespoke solutions, tailored to Ontario’s needs, can empower Ontario to replicate the success of ecosystems like Massachusetts achieving exponential growth in venture capital funding, homegrown companies, and global competitiveness.
“We have the infrastructure, talent, and innovation capacity – what we need now is the strategic investment to bridge the funding gap and ensure Ontario’s life sciences companies can scale and thrive on the global stage”
The Outcome: Invest in Ontario’s Life Sciences to Secure Our Global Leadership and Economic Future
As part of its life science strategy, Ontario aims to maintain and grow the biomanufacturing and life sciences sector by 25% by 2030.5
Ontario has done the hard work of building an incredible foundation. Now is the time to act decisively, bridging the funding gap and unlocking the full potential of our life sciences ecosystem. Together, we can make Ontario a global leader, ensuring prosperity and health security for generations to come.
References:
1LSO Roadmap; 2Phase 2 Life Science Strategy; 3Life Sciences Innovation Fund; 4IP Ontario; 5Ontario’s Life Science Strategy