From lab to market: Accelerate Fund doubles down on health and medical innovation in Alberta

Alberta’s life sciences sector is booming, creating a perfect storm of opportunity for investors and founders alike. With world-class research institutions, a growing focus on commercialization, and experienced founders mentoring the next wave of innovators, Alberta is making strides in health tech innovation. 

The numbers also tell a compelling story: health and medical technology companies now make up over 33% of Alberta’s life sciences landscape (up from 22% in 2019). Last year alone, five Alberta-based medical device companies raised a record-breaking $56 million in venture capital. 

This isn’t just a local trend—it’s part of a global market projected to grow from $810.4 USD billion to $1.3 trillion USD by 2029, offering substantial returns for investors who understand the unique potential of health innovation. 

“While capital-intensive, companies innovating in the life sciences have significant return potential. As more VCs recognize this, we’re seeing growing interest in the sector,” explains Arden Tse, Investment Manager at Accelerate Fund. “With the rise of AI making it cheaper to build software startups, many VCs are finding it harder to identify worthy investment opportunities in that space. Life sciences remains an area that still requires significant capital and represents an underserved market with strong potential returns.”

Unique challenges: commercialization and regulatory hurdles

While Alberta’s researchers continue to deliver world-class innovations in labs across the province, turning those breakthroughs into market-ready solutions requires navigating regulatory hurdles and complex approval processes. 

“Life sciences startups face challenges far beyond those in traditional tech. Regulatory approvals, clinical trials, and complex jurisdictional requirements make the commercialization process both capital- and time-intensive. Founders must balance scientific innovation with business realities, often requiring a unique mix of team expertise across science, commercialization, and legal frameworks,” explains Yasmine Al-Hussein, Investment Associate at Accelerate Fund. 

Life sciences companies face a fundamentally different path than other tech startups like software. They can’t easily pivot their core technology, regulatory approach, or market strategy once development is underway. Instead, they need clear plans for regulatory approval, clinical validation, and reimbursement from day one. 

Accelerate Fund’s impact on Alberta health tech and life sciences

The Accelerate Fund was created in 2012 by Alberta Enterprise Corporation (AEC) to encourage private capital investment in Alberta’s emerging technology sector. Backed by AEC across four funds, the Accelerate Fund has provided critical early-stage financing to some of the province’s most promising innovators.

Since 2012, we’ve had the opportunity to back some of the province’s most promising innovators in the healthcare and medical technology space. To date, Accelerate Fund has backed nine life sciences and health tech startups across four funds:

• Accelerate Fund I (2012): $10M fund managed by AVAC that included backing for medical device company Surface Medical.
• Accelerate Fund II (2016): $10M fund managed by Yaletown Partners in partnership with the A100 that invested in early-stage tech startups, including AI-driven pharmaceutical database DrugBank.
• Accelerate Fund III (2020): $23M fund managed by Yaletown Partners in partnership with the A100 that significantly expanded investments in health tech, including: medical device startup PulseMedica; clinical-stage medical device company Fluid Biomed; app-based biofeedback smart health tool True Angle; point-of-care health platform Zamplo; healthcare innovation-focused MedTech and mental health organization CARE Group; and precision biotech cancer detection company Syantra.
• Accelerate Fund IV (2024): Initial close of $15M managed by Yaletown Partners with first investment in medical device startup, Northernmost, to improve kidney transplant outcomes. 

Accelerate Fund IV is seeking to invest approximately one-third of its portfolio into life sciences and health technology companies.

Backing Alberta’s top health innovations

Here’s a closer look at three standout companies from our portfolio that are making significant impacts in the medical device sector. 

Fluid Biomed: transforming brain aneurysm treatment

• What they do: Fluid Biomed has developed the world’s first bioabsorbable polymer-based brain stent, ReSolv, designed to treat brain aneurysms by diverting blood flow and promoting vessel healing. Unlike traditional metal stents, ReSolv dissolves over time, eliminating the need for lifelong blood thinners and enabling better imaging with non-invasive scans like MRIs and CTs. 
• Why it matters: Brain aneurysms affect up to 5% of people and can lead to devastating strokes or disabilities. Fluid Biomed’s innovative technology offers a safer, more effective solution that improves patient outcomes while reducing long-term complications. 
• Recent milestone: In December 2024, Fluid Biomed raised $27 million USD in a Series A funding round, one of the largest for an early-stage medtech company. This funding will support expanded clinical trials, manufacturing scale-up, and pre-commercialization efforts as the company advances toward regulatory approval. 

PulseMedica: revolutionizing eye disease treatment

• What they do: PulseMedica combines AI-powered imaging, real-time 3D eye tracking, and precise laser therapy to treat retinal diseases like age-related macular degeneration and diabetic retinopathy.
• Why it matters: Their non-invasive approach offers a safer alternative to traditional injections and surgeries for millions of patients worldwide.
• Recent milestone: Secured CAD$12 million in 2024 funding and built strategic partnerships with leading ophthalmology experts to advance toward commercialization.

Northernmost: modernizing kidney transplant preservation

• What they do: Northernmost has developed the NoMo™ Kidney Pump, a next-generation perfusion machine that preserves and transports donor kidneys for transplant by continuously circulating preservation fluid.
• Why it matters: Kidneys are the most commonly transplanted organ worldwide, and their technology addresses critical issues in kidney preservation, increasing viable donor organs and improving transplant success rates.
• Recent milestone: In April 2025, Northernmost secured $2.7 million in seed funding. The funds will be used to complete product development and establish manufacturing operations, introducing the NoMo Kidney Pump at key industry events this summer.

Shape the future of Alberta’s health & medical industry with Accelerate Fund

Alberta’s health innovation ecosystem is positioned for significant growth, and we’re committed to helping it thrive with our latest Fund IV.

For health tech founders, it’s never too early to get in touch with our team. Even if you aren’t actively raising money, we can connect you with mentors, potential investors, and commercialization support to help you continue to grow.

We encourage you to engage with both the health innovation ecosystem and the broader tech community in Alberta. These connections can make a significant difference in navigating the complex path from research to commercialization. 

If you’re actively raising funds, here’s what we look for:  

• Strong teams with both research expertise and commercialization knowledge
• Proprietary technology with promising preclinical results or early customer traction
• A solid, realistic plan for regulatory approval and reimbursement
• Founders who actively engage with the markets they’re serving

Share your pitch to start a conversation with our team.

For strategic investors, Fund IV intends to invest one-third of the fund into the life sciences sector because we see tremendous opportunity. Our job is to scour these opportunities and back companies early. Many investors don’t have the time or resources to allocate to that level of due diligence, but it’s what we do best.

Partnering with us provides access to our due diligence process and a curated pipeline of promising health tech ventures. To explore partnership or co-investment opportunities, connect with us at info@acceleratefund.ca.