Key Takeaways
- • British Columbia not-for-profits including Praxis Spinal Cord Institute, University of British Columbia, and Terry Fox Foundation are shifting from traditional grant-based models to launching venture funds that capture financial returns on commercialized research.
- • UBC announced the UBC Catalyst Ventures Fund in partnership with InBC Investment Corp., while Terry Fox Foundation launched the Cancer Breakthrough Fund with Lumira Ventures in April 2025; Praxis plans to launch its venture fund later in 2026.
- • The venture model allows not-for-profits to invest directly in early-stage projects, guide commercialization, participate in portfolio company growth, and retain financial upside—contrasting with traditional grant programs that generate only social impact with no capital returns.
- • Canadian not-for-profits have historically shown reluctance to embrace venture-style risk-taking; shifting U.S.-Canada dynamics are motivating organizations to take more active commercialization roles to maximize donor capital efficiency.
- • Direct investment and long-term stewardship of portfolio companies enables not-for-profits to align financial and mission outcomes, ensuring research benefits intended populations over extended periods rather than through arm's-length external commercialization.
Summary
British Columbia-based not-for-profit organizations are fundamentally restructuring their capital deployment strategies by launching venture funds designed to commercialize research while capturing financial returns—a departure from traditional donation-based funding models that generate only social impact. This trend reflects broader recognition among research charities that venture investment can serve dual purposes: advancing mission-critical innovation while building sustainable capital bases through portfolio returns.
Praxis Spinal Cord Institute, a Vancouver-based organization focused on spinal cord injury research and care, is raising capital to establish a venture fund scheduled for launch later in 2026. The initiative follows recent precedents set by peer institutions: the University of British Columbia and InBC Investment Corp. jointly announced the UBC Catalyst Ventures Fund last month, while the Terry Fox Foundation launched the Cancer Breakthrough Fund in partnership with Lumira Ventures in April 2025. These funds represent a coordinated strategic shift within the B.C. innovation ecosystem.
The operational model distinguishes venture investing from traditional grant-making by inverting the capital allocation structure. Rather than distributing grants to external researchers whose subsequent commercialization efforts benefit third-party investors, not-for-profits now invest directly in early-stage projects, maintain governance participation, guide commercialization pathways, and participate in portfolio upside capture. According to Arushi Raina, innovation director at Praxis, this approach addresses a fundamental inefficiency: "If you're a research charity and granting people money, you will never get any return on that money ever—only impact. Venture is high risk, but you have a chance that will be returned." This reframing enables organizations to steward donor capital more aggressively while maintaining mission alignment through sustained involvement in portfolio company development.
Raina emphasized that direct investment allows not-for-profits to ensure research benefits remain targeted to intended populations over extended periods. Rather than conducting a transactional capital transfer, organizations can "chase that startup founder and make sure that he's benefiting people with spinal cord injury for 10 years," embedding impact verification into governance structures. The broader context reflects Canadian institutional reluctance historically to embrace venture-style risk profiles, a hesitation now shifting in response to evolving U.S.-Canada dynamics that create competitive pressure for more aggressive commercialization strategies among research-focused not-for-profits.
Praxis Spinal Cord Institute, a Vancouver-based organization focused on spinal cord injury research and care, is raising capital to establish a venture fund scheduled for launch later in 2026. The initiative follows recent precedents set by peer institutions: the University of British Columbia and InBC Investment Corp. jointly announced the UBC Catalyst Ventures Fund last month, while the Terry Fox Foundation launched the Cancer Breakthrough Fund in partnership with Lumira Ventures in April 2025. These funds represent a coordinated strategic shift within the B.C. innovation ecosystem.
The operational model distinguishes venture investing from traditional grant-making by inverting the capital allocation structure. Rather than distributing grants to external researchers whose subsequent commercialization efforts benefit third-party investors, not-for-profits now invest directly in early-stage projects, maintain governance participation, guide commercialization pathways, and participate in portfolio upside capture. According to Arushi Raina, innovation director at Praxis, this approach addresses a fundamental inefficiency: "If you're a research charity and granting people money, you will never get any return on that money ever—only impact. Venture is high risk, but you have a chance that will be returned." This reframing enables organizations to steward donor capital more aggressively while maintaining mission alignment through sustained involvement in portfolio company development.
Raina emphasized that direct investment allows not-for-profits to ensure research benefits remain targeted to intended populations over extended periods. Rather than conducting a transactional capital transfer, organizations can "chase that startup founder and make sure that he's benefiting people with spinal cord injury for 10 years," embedding impact verification into governance structures. The broader context reflects Canadian institutional reluctance historically to embrace venture-style risk profiles, a hesitation now shifting in response to evolving U.S.-Canada dynamics that create competitive pressure for more aggressive commercialization strategies among research-focused not-for-profits.
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