New report from MaRS warns of make-or-break moment for Canada’s health tech pipeline
Early-stage funding has dropped just as global demand for health innovation is rising. Canada still has a chance to lead, but only if it acts now.
TORONTO, September 9, 2025 – MaRS Discovery District has released a new report showing Canada’s health innovation pipeline is under threat. The report outlines how early-stage health tech investment has dropped 30 percent since 2022, with deal counts down 26 percent. Early stage biotech startups in particular are facing formidable challenges; last year the majority of funding flowed to de-risked, later-stage deals. In fact, 83 percent of biotech investment in 2024 went to just five companies.
The report warns that without urgent action, Canada risks losing a generation of high-potential ventures, along with the jobs, IP and life-saving innovations they could bring.
“We are reaching a critical moment,” says Louise Pichette, director of health sciences at MaRS. “Canadian founders are tackling some of the world’s biggest health challenges, but without capital and a stronger domestic market, they won’t be able to build here.”
Key findings:
Early-stage venture capital investment in life sciences fell 30 percent since 2022
Just five deals accounted for 83 percent of all biotech investment in 2024
Canadian statups’ share of global biotech VC funding is now less than 5 percent
Despite these challenges, the report highlights five emerging areas where Canadian ventures are poised to lead:
Breakthrough areas to watch:
- Liquid biopsies: Companies such as mDetect and Oxford Cancer Analytics are creating fast, affordable tools to detect cancer early.
- Digital biomarkers: Ventures such as Retispec and Interaxon are using brain imaging and real-world data to detect early signs of conditions such as Alzheimer’s
- Women’s health: Canada is now the third largest femtech ecosystem globally, with companies including Afynia, Cellect and Maman Biomedical breaking new ground.
- GLP-1 expansion: Ozempic and Wegovy and other metabolic treatments are being explored for new indications, and startups such as Nymble are building better delivery and support models.
- AI in health: Canadian ventures are building predictive tools and hospital digital twin models, including Linda Lifetech and Verto Health.
The report also points to signs of momentum in new public-private funding models. These include the Wittington Innovation Fund and the Terry Fox Foundation’s partnership with Lumira Ventures to create a Canadian Cancer Breakthrough Fund. The report calls for greater national coordination and collaboration to nurture Canada’s health tech ecosystem.
“Health innovation is an economic strategy,” said Pichette. “We have the science and the talent. Now we need to give them the tools to grow.”
Full report found on MaRS Research and Impact page
Contact Information:
Media contact: Wendy Bairos
wbairos@marsdd.com
MaRS Discovery District
About MaRS
MaRS Discovery District is a charitable organization and North America’s largest urban innovation hub, dedicated to helping Canadian technology companies succeed. With a focus on climate, health sciences and other emerging technologies, MaRS supports startups tackling some of the world’s most pressing issues.
MaRS spans more than 1.5 million square feet of cutting-edge office, lab, meeting and event space in downtown Toronto across two locations — the MaRS Centre and MaRS Waterfront. Since 2010, MaRS has helped ventures generate $11.5 billion in cumulative revenue, raise $19 billion in funding, and create and maintain more than 33,000 jobs. The MaRS platform also includes MaRS IAF, one of Canada’s top seed-stage venture funds. Through its world-class facilities, strategic programs and partnerships, MaRS accelerates the adoption of groundbreaking Canadian technology and bolsters a globally competitive innovation ecosystem.