Forty-five years after its namesake set out on his historic Marathon of Hope, the Terry Fox Foundation is stepping up its push to find the next breakthrough cancer treatment.
What happened: The foundation is partnering with Canadian life sciences venture firm Lumira Ventures to launch a new investment fund aimed at helping startups turn their cancer research into commercial therapies.
- The fund plans to make 13 investments to start, splitting the money it raises between early-stage Canadian cancer treatment developers and more advanced companies.
Catch-up: The partnership is an example of venture philanthropy, a novel approach that mixes the mission of charity with the business model of VC. It’s proven to be successful in the U.S., but this is the first time we’ve seen the approach in Canada.
- The major difference between venture philanthropy and other funding sources is that the end goal isn’t a payday. In fact, charities and foundations will often reinvest their profits from a successful product into more research.
Why it matters: Early-stage startups working on potentially lifesaving treatments are seen as risky and often have trouble attracting traditional investors. With a different pursuit, venture philanthropy could help fill the funding gap and give more Canadian startups a chance to bring their treatments to market.—LA