Québec AI institute Mila and Montréal venture firm Inovia Capital have announced the launch of an early-stage venture fund aimed at addressing a longstanding commercialization gap in Canada’s AI sector. The initiative, named the Venture Scientist Fund, seeks to raise $100 million USD (approximately $125 million CAD) and aims to support at least 55 “AI-native” startups by assisting researchers in transforming their discoveries into marketable products.
The announcement was made at Mila headquarters in Montréal, with Inovia co-developing and co-managing the fund alongside Mila’s team, which will operate under a separate legal entity. The initiative responds to federal priorities outlined by Prime Minister Mark Carney and AI and Digital Innovation Minister Evan Solomon, who are focused on accelerating Canada’s commercial efforts in the AI field.
“We plant the seed, we water, we grow, and someone else harvests? It’s not going to happen anymore.”
AI Minister Evan Solomon
Mila President and CEO Valérie Pisano remarked that the fund is inspired by the proactive approach of the Canadian government. Solomon emphasized the fund’s objective to ensure that the economic value generated by Canadian research remains within the country, stating, “Canadian talent, Québec talent, gets harvested by other countries.”
Solomon described the fund as a “concierge service” designed to equip researchers contemplating commercial ventures with necessary capital and support. Additionally, the fund will feature venture lab-style programs designed to harness promising talent across Canada’s national AI institutes, which include Mila, the Alberta Machine Intelligence Institute (Amii) in Edmonton, and the Vector Institute in Toronto, alongside associated universities.
“Amii is proud to continue this work, leveraging our expertise in reinforcement learning and machine learning to help startups accelerate their AI adoption,” said Amor Provins, product owner of startups at Amii.
This initiative marks Mila’s first significant foray into venture capital, aiming to better commercialize its cutting-edge AI research. On Monday, Mila and consulting firm Bain & Company released a report titled The Rise of the Canadian Venture Scientist, suggesting that Canada can reclaim its AI advantage by leveraging its network of promising researchers and facilitating the creation of new companies.
The report noted, “Venture scientists are researchers equipped to translate frontier ideas into companies,” highlighting the need to bridge the gap between laboratory research, startups, and corporations. Solomon confirmed that while the federal government will not directly invest in the fund, it will continue to provide funding for Mila, Amii, and Vector.
Notably, Pisano expressed optimism about the fund’s fundraising prospects, indicating that she anticipates reaching the $100 million target quickly due to a high level of interest within the Canadian ecosystem. Inovia will act as a limited partner in the fund as part of its Discovery Program aimed at first-time fund managers. The remaining capital is expected to come from institutional investors, family offices, and potentially corporate partners.
Chris Arsenault, co-founder and partner at Inovia, stated the fund’s mission is to nurture Canadian talent, or talent from researchers studying in Canada, to develop into global companies. “We want to create that pipeline, and nobody’s done it yet,” he noted, pointing out that the deal flow would provide investment and follow-on opportunities for Inovia’s other funds.
Stéphane Marceau, managing director of AI ventures at Mila, will oversee the fund alongside a team of advisors, including entrepreneur-in-residence Alex Shee, former Pender Ventures partner Isaac Souweine, and former Circle K Ventures managing partner Jonathan Shaanan. More specific details regarding roles and team members will be revealed in the coming weeks.
In summary, the launch of the Venture Scientist Fund is a decisive move for both Mila and Inovia as they aim to capitalize on the burgeoning AI talent in Canada. The initiative represents a concerted effort to ensure that the benefits of Canadian innovation are realized domestically, encouraging a shift in how research finds its way into the marketplace.
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