Mila Institute & Inovia launch CAD $138M AI venture fund

Mila Quebec AI Institute and Inovia Capital have launched a new early-stage venture capital vehicle called the Venture Scientist Fund.

With a target size of USD $100 million and a focus on company creation linked to Canadian academic research, the fund will invest in more than 55 AI-native companies that emerge from research groups and venture creation programs associated with Canada's national AI institutes and leading universities.

Mila said the Venture Scientist Fund sits alongside venture creation programs at Amii and Vector.

The fund will focus on areas where the partners expect scientific depth to matter. The organisations listed foundational AI, deep tech, and next-generation computational and physical infrastructure among the priority domains.

The initiative positions itself as part of a broader effort to turn research output into new businesses. The partners also pointed to an imbalance between Canada's research strength and the amount of venture capital directed at AI.

The announcement cited an estimate that Canada accounts for roughly 10 per cent of the world's top AI research talent while capturing less than 2 per cent of global AI venture capital investment. Earlier this week, Mila released these estimates in its "The Rise of the Canadian Venture Scientist" report, in collaboration with Bain & Company.

"This gap presents a generational opportunity to build closer bridges between research and entrepreneurship, resulting in the next wave of AI-native businesses that will shape industries globally, while generating long-term value in Canada," the institute said in a statement.

University pipeline

The partners said the fund expects to draw opportunities from a set of universities across the country. They listed the University of Alberta, the University of British Columbia, McGill University, Université de Montréal, the University of Toronto and the University of Waterloo.

Mila operates in Montreal and formed out of a partnership between Université de Montréal and McGill University. The institute said it includes a community of more than 1,500 members and specialises in deep learning.

Inovia manages more than USD $2.5 billion and runs investment strategies branded as Discovery, Venture, and Growth. The firm has operations in Montreal, Toronto, Waterloo, Calgary, the Bay Area, London and Abu Dhabi.

Commercialisation focus

Mila and Inovia framed the fund as part of Canada's commercialisation pipeline for AI and research-led technologies. They said it will link scientific expertise and research output with venture funding and investor networks.

They also positioned the vehicle as a response to concerns around the retention of researchers and the location of intellectual property. The partners said the fund will aim to anchor talent and intellectual property in Canada as new businesses form around research.

"Mila is devoted to inspiring AI innovation for the benefit of society," said Valérie Pisano, President and CEO of Mila. "The Venture Scientist Fund extends that mission by propelling impactful ideas to move beyond the lab and into the real economy. It is meant to serve as a catalyst for ventures emerging from Mila and across the country."