A group of B.C. not-for-profits is shifting from traditional donation-based funding to launching venture funds aimed at commercializing research while retaining potential financial returns. Praxis Spinal Cord Institute, based in Vancouver, plans to raise capital for its venture fund later this year, focusing on spinal cord injury research, innovation, and care. This approach follows similar initiatives, including the UBC Catalyst Ventures Fund by the University of British Columbia and InBC Investment Corp., and the Terry Fox Foundation’s Cancer Breakthrough Fund, highlighting a growing trend of research-focused venture investing in Canada.
Unlike conventional grant-making, these venture funds allow organizations to invest directly in projects, guide them through commercialization, and capture some financial upside. Praxis has previously supported over 48 companies through its accelerator program, with 18 products reaching the market, demonstrating the potential of combining research expertise with commercialization support. The model offers a way to ensure research outcomes have long-term, practical impact for target communities.
UBC and InBC’s venture fund also addresses a gap in Canada’s innovation pipeline, helping researchers retain their startups locally rather than leaving for other markets. The funds aim to provide early-stage capital, guidance, and mentorship, creating incentives for researchers to build companies in B.C. and contributing to a stronger provincial innovation ecosystem. Canada’s historically risk-averse approach has slowed research commercialization, but global and domestic pressures, including U.S. market disruptions, are prompting change.
Venture funds leverage the expertise of research organizations to guide startups, signal credibility to other investors, and navigate early development challenges. With global tech dynamics shifting and pre-pandemic business models under pressure, early investment in emerging sectors like deep tech and life sciences is increasingly important. Both Praxis and UBC aim to demonstrate a replicable model for other not-for-profits to accelerate research commercialization, build the local tech investment ecosystem, and potentially generate revenue.
For organizations new to investing, experts recommend starting as limited partners in existing funds to gain experience and manage risk. Effective fund management also requires compliance frameworks, partnerships with experienced investment teams, and in some cases, in-house teams. Praxis plans to reinvest about half of any returns into its programs, while UBC and InBC aim to expand the Catalyst Ventures Fund to $40 million. These initiatives seek to strengthen Canada’s research commercialization capabilities and provide models for scaling venture-based funding in the not-for-profit sector.
