Montreal's renowned AI research institute, Mila, has partnered with leading venture capital firm Inovia Capital to launch the Venture Scientist Fund, a new $100 million initiative. This strategic fund is designed to bridge the significant gap between Canada's abundant AI research talent and its limited share of venture capital investment. The collaboration aims to create a structured, repeatable pathway for scientific breakthroughs to evolve into globally competitive, Canadian-based companies that will shape future industries.
Addressing a National Discrepancy
The initiative directly confronts a stark imbalance within Canada's technology landscape, where the nation boasts approximately 10% of the world's top AI researchers but secures less than 2% of global AI venture capital. A joint report from Mila and Bain & Company further highlighted that nearly 70% of Canadian-led startups are ultimately headquartered outside the country, representing a significant loss of potential economic value. The Venture Scientist Fund is positioned as a critical tool to reverse this trend by providing essential early-stage capital and support.
A New Model for Venture Capital
With a target size of USD $100 million, the fund plans to invest in a portfolio of over 55 emerging AI-native companies. Unlike traditional venture vehicles, it is deeply integrated with Canada's national AI institutes, including Mila, Alberta's Amii, and Toronto's Vector Institute, creating a powerful national network. This unique structure is intended to create a seamless pipeline, transforming academic research into viable commercial ventures and turning researchers into 'venture scientists' with the resources to succeed.
Strategic Investment Focus
The fund will concentrate on domains where deep scientific expertise provides a distinct and defensible competitive advantage. Key areas of interest include foundational AI models, deep tech, and the development of next-generation computational and physical infrastructure needed to power future innovations. This focus ensures that capital is directed toward ventures emerging from Canada's top universities, such as McGill and the University of Toronto, that are poised to become category-defining companies.
Fostering a Domestic AI Ecosystem
Leaders from both organizations emphasized the fund's role in strengthening Canada's technology ecosystem and retaining its most valuable asset: talent. Chris Arsenault, Founder and CEO at Inovia Capital, stated the fund turns Canada's scientific strength into a pipeline of consequential companies that fuel a vibrant local economy. This sentiment was echoed by AI Minister Evan Solomon, who stressed the importance of preventing Canadian talent from being 'harvested by other countries' and anchoring intellectual property domestically.
A Catalyst for Frontier Innovation
Mila's scientific director, Hugo Larochelle, noted that many current AI shortcomings, such as a lack of reliability and physical task capability, present ripe opportunities for new startups. The fund is designed to act as a catalyst, providing the direct and patient capital needed for scientist-led firms to tackle these complex challenges. This approach addresses an 'acute funding gap' at the pre-seed and seed stages that was previously identified by the national AI institutes.
Ultimately, the Venture Scientist Fund represents a pivotal collaboration between Canada's world-class research community and its leading technology investors. By providing crucial, patient capital at the earliest stages, the initiative aims to not only retain top talent but also to build a sustainable ecosystem of impactful AI companies. This strategic effort signals a clear commitment to reinforcing Canada's global leadership in artificial intelligence by translating scientific prowess into long-term economic value and market-defining enterprises.