Catalyzing Ontario’s Life Sciences Economy: Urgent Call to Bridge the Risk Capital Gap

Ontario’s life sciences sector is a global leader in research and talent—but a critical shortage of seed-stage capital is limiting its ability to commercialize innovation and retain homegrown companies. A new report from Life Sciences Ontario and Shift Health outlines the urgency of this challenge and presents a clear roadmap for change.

Ontario has built a strong foundation in life sciences. The sector contributes over $58 billion to provincial GDP and employs more than 90,000 highly skilled professionals. It is home to world-renowned research institutions, growing biomanufacturing capacity, and a robust pipeline of innovation. However, to maintain its global leadership, Ontario must address a critical challenge: the seed-stage funding gap. Despite strong infrastructure and recent public investments in Ontario, many early-stage ventures lack access to the risk capital needed to grow.

The newly released report, Catalyzing Ontario’s Life Sciences Economy, identifies this capital shortage as a defining barrier to the province’s innovation future. While other jurisdictions like British Columbia and Quebec are rapidly mobilizing public and private capital to support early-stage growth, Ontario risks falling behind without urgent action.

Startups in life sciences face unique hurdles—higher risks in product development, intensive regulatory pathways, longer time to market, and significant upfront R&D costs. As a result, many early-stage companies remain stalled—too early for traditional investors, too risky to scale alone. These challenges make early-stage life science ventures especially vulnerable without targeted public support. The report emphasizes the importance of bespoke solutions tailored to Ontario’s specific needs to de-risk early investment and unlock the full potential of its life sciences ecosystem.

Bridging this funding gap will enable Ontario to retain and scale homegrown companies, attract global capital, create thousands of high-value jobs, and strengthen the entire innovation pipeline—from universities and research institutions to health systems and supply chains.

In a global landscape defined by supply chain uncertainty and rising demand for domestic innovation, supporting Ontario’s early-stage companies is no longer optional—it’s a strategic imperative. With decisive action, Ontario can turn research strength into commercial scale and secure lasting leadership in health innovation and economic growth. Download the full report here.