In a groundbreaking initiative, the Canadian Cancer Society (CCS) has announced its entry into the venture capital sphere by partnering with the Terry Fox Foundation to establish the Cancer Breakthrough Fund. This innovative fund aims to support startups that are developing cutting-edge cancer treatments, with the CCS pledging to contribute up to £10 million, thereby matching the foundation’s commitment. The move marks a significant shift for the 88-year-old organisation, which traditionally focused on basic cancer research funding.
A Collaborative Effort for Innovation
The Cancer Breakthrough Fund, managed by Lumira Ventures—one of Canada’s premier life sciences venture capital firms—aims to raise a total of £50 million for investments in cancer treatment developers. Since its inception just over a year ago, the fund has successfully secured over £30 million in commitments from various investors, including social impact firms such as Rally Assets, Boann Social Impact, and Northpine Foundation, established by early Shopify investor John Phillips and his wife, Cathy.
Peter van der Velden, executive chairman of Lumira, revealed in an interview that the fund is poised to make its first investment shortly. The goal is to execute 13 investments, with at least 25% of funds directed towards early-stage cancer treatment developers. The remaining capital will be co-invested in more advanced companies alongside another Lumira fund, which is currently raising US$200 million to support life sciences ventures across Canada and the United States. Notably, this larger fund anticipates that 40% of its investments will focus on cancer-related enterprises.
A New Paradigm for Cancer Funding
This collaboration signifies a first for Canada’s two leading national cancer research funding bodies, as they venture into commercial financing—a model already adopted successfully by several philanthropic organisations in the United States. Noteworthy examples include the Cystic Fibrosis Foundation and the American Cancer Society’s BrightEdge fund.
Additionally, the Canadian Cancer Society has recently engaged in a partnership with the University of Toronto’s Creative Destruction Lab, committing £6.5 million over five years to support oncology-focused startups. This philanthropy-venture model represents a novel approach for disease-focused charities, aiming to enhance health outcomes by funding companies dedicated to bringing innovative cancer treatments to market.
Encouraging Broader Investment in Health Innovations
Van der Velden expressed hope that the fund will encourage a significant influx of capital from charities, universities, and healthcare institutions that have yet to invest in commercial ventures aligned with their missions. “We are hoping for an unbelievable unlock of billions of dollars,” he stated.
Support for this initiative is echoed by several investors. Michael Mazza, CEO of the Terry Fox Foundation, emphasised the importance of collaboration in the charity sector, asserting that organisations should actively seek opportunities to work together. Phillips added that many private foundations are not leveraging their resources effectively and should dedicate more attention to dual-impact investment opportunities.
Andrea Seale, CEO of the Canadian Cancer Society, highlighted the pressing need for this financial model as cancer cases are expected to rise by 40% in the coming years due to an ageing population. “Even though we are making strides in survival rates, we must prepare for an increase in cancer diagnoses,” she said. Seale further noted that the society is committed to ensuring that research transitions from the lab to practical applications that benefit patients, addressing the common challenge faced by oncology startups: insufficient capital to support their developmental needs.
A Strategic Shift in Funding
The Canadian Cancer Society’s investment represents a strategic change, as it is financing its contribution from its reserves rather than seeking directed donations. This decision necessitated an adjustment to the organisation’s investment policy, approved by the board’s finance, audit, and risk committee. Seale remarked that the decision was straightforward, stating, “Canadians expect us to do everything within our power to further our mission and enhance patient outcomes. This initiative aligns perfectly with our risk profile and overarching goals.”
Why it Matters
The establishment of the Cancer Breakthrough Fund marks a pivotal moment in the fight against cancer in Canada. By merging philanthropic efforts with venture capital, the initiative not only seeks to foster innovation in treatment development but also aims to bridge the gap between research and real-world applications. As the landscape of cancer treatment continues to evolve, this collaborative approach could serve as a model for other disease-focused charities, potentially leading to breakthroughs that may significantly improve patient outcomes and extend lives.