NEWS
New Report Calls for Urgent Action to Bridge Critical Funding Gap Threatening Ontario’s Innovation Leadership
Related
In partnership with Shift Health, Toronto Global has released “At the Tipping Point”, a white paper which discusses the need for wet lab space in the Toronto Region
LSO Releases 2021 Policy Forum Report: “Empowering the Life Sciences in Ontario’s Resilient Future”
Research Canada and Shift Health Release Report on “Invigorating the Biopharmaceutical Sector’s Contribution to Canada’s Health Research and Innovation Ecosystem”
A new report, Catalyzing Ontario’s Life Sciences Economy, released by Life Sciences Ontario and Shift Health, calls for targeted action to address the shortage of risk capital available to early-stage life sciences companies in the province. The report identifies seed-stage investment as the critical missing link to securing Ontario’s global leadership in life sciences.
Ontario’s life sciences sector contributes over $58 billion to the province’s GDP and supports more than 90,000 jobs. Yet, many startups struggle to secure the investment needed to move beyond the research phase. Despite significant government commitments, including $146 million for Phase 2 of Ontario’s Life Sciences Strategy, early-stage ventures face challenges that private capital alone cannot solve—such as higher risks in product development, significant R&D costs, stringent regulatory requirements and a comparatively longer path to market.
This “funding desert” leaves Ontario’s most promising startups vulnerable, often forcing them to seek capital and relocate to more supportive jurisdictions. The report underscores that without targeted de-risking mechanisms, these companies—and the economic and health benefits they bring—are at risk of being lost to other markets.
To close this gap, the report recommends government intervention through tailored solutions, including direct seed fund investments, modernized tax incentives for angel investors, and policy reforms designed specifically for the life sciences sector. With global competition intensifying, Ontario must act now to retain homegrown innovation, attract global capital, and strengthen its broader innovation ecosystem.
As Ontario aims to reach 85,000 high-value life sciences jobs by 2030, closing the funding gap is essential to scaling local companies, driving commercialization, and securing the province’s position as a global leader in life sciences innovation and economic growth.
For detailed findings and recommendations, read the full report here.