Canada’s MedTech Landscape Transforms with Strategic Capital

In the Canadian life‑science arena, breakthrough technology alone is no longer the decisive factor for a medtech venture’s success. Strategic investors now emerge as the primary differentiator, shaping whether a startup can scale while preserving its local identity.

Why Strategic Investors Matter

“Finding smart money is critical when choices exist,” said Judyanna Yu, managing partner at One Six 8 Ventures, during her interview with Digital Journal at Inventures 2025. Yu emphasizes that investors must provide more than capital; they should offer strategic advice, partnership, and operating experience.

One Six 8 Ventures’ Blueprint for Startup Growth

Yu reveals that One Six 8 Ventures is betting on a unique blend of elements to help Canadian medtech start­ups flourish:

• Operating expertise that guides product development through regulatory milestones.
• Global networks that open doors to international funding and commercial pathways.
• Local commitment that keeps founders connected to Canadian talent, resources, and innovation hubs.

Local Commitment Meets Global Reach

The investment model Yu champions shows a shift happening inside Canada’s early‑stage medtech sector: it is becoming a space where operational experience, global networks, and local rooting coexist. This combination equips startups to scale worldwide without abandoning their Canadian roots.

Closing National Gaps in Health Innovation

Canada’s health‑innovation pipeline seeks to grow its domestic capabilities. Investors and founders alike are closing critical gaps that previously sent many companies abroad in search of capital, partnerships, or commercial pathways. According to Yu, this paradigm may be changing.

To dive deeper into Yu’s perspective, watch the full interview streamed below.

Strengthening Canada’s health innovation base

Canada’s Life Sciences Sector Gaining Global Momentum

Adapting from promising research to market‑ready products has long been a daunting hurdle for Canada’s life sciences community. Yet, Yu notes a clear shift in the landscape.

Recent Breakthrough Deals

Last summer, Fusion Pharmaceuticals sold to AstraZeneca, and two summers ago, Chinook Therapeutics transitioned to Novartis—both highlight the sector’s growing attractiveness.

Ecosystem of Early‑Stage Growth

• More robust investor networks
• Expanded government grant programs
• Specialized funds targeting early‑stage ventures

For One Six 8 Ventures, the focus is on medtech companies ready to advance from Seed to Series A—a phase demanding more than just funding.

Chain Reaction of Funding

Influence flows from government grants to angel investors taking initial leaps, and finally to late‑stage private equity firms when valuations rise. Yu declares Canada’s health innovation ecosystem is displaying maturity.

Judyanna Yu Leads One Six 8 Ventures

Photo: Jennifer Friesen, Digital Journal

Beyond Capital: What Startups Truly Need

While funding is vital, many biotech startups lack the expertise to commercialize groundbreaking science.

“Expertise is the missing link,” says Yu, the managing partner of One Six 8 Ventures.

Challenges Faced by Technical Founders

• Intellectual property is strong, but teams and advisors are missing.
• Regulatory pathways remain uncharted for many labs.
• International expansion stalls without guidance.

Yu’s Decade‑Long Experience

With over ten years as a CFO for medtech and biotech firms across North America and Asia, Yu has built a global network of physicians, scientists, and operators who have successfully grown and exited health companies in various markets.

Canadian Investors Embrace Growth

Yu notes a growing willingness among Canadian investors to support companies staying and scaling locally, provided the right supports are in place.

Why timing the exit matters in medtech

bBuilding Medtech for Acquisition – A Strategy That Shapes Every Step

bMedtech companies often start with a clear exit plan, ensuring that product development, partnerships, and regulatory routes align with the eventual acquisition by global giants.

bWhy the Acquisition Lens Matters

• Medtech exits are typically driven by large players such as Medtronic, Stryker, and Johnson & Johnson within 10 to 12 years of incorporation.
• Strategic focus from the outset helps founders identify the right intellectual property, technology gaps, and team capabilities required for market success.
• Early questioning about IP protection, regulatory feasibility, and partnership building creates a roadmap that keeps founders from losing momentum during critical development stages.

bKey Evaluation Areas for Founders

• Technical Feasibility – Assessing whether the science translates into a scalable product.
• Regulatory Pathways – Mapping FDA approval steps and timelines to avoid costly surprises.
• IP Strategy – Building robust patents that protect the technology while granting operational freedom.

bCommon Blinds Spots That Stall Medtech Innovations

• Skipping regulatory prep or underestimating approval duration.
• Forgetting that commercialization is a full‑time commitment requiring dedicated resources.
• Founders who excel in research but lack the team dynamics to achieve market entry.

bPre‑Planning for Acquisition Success

• IP Lockdown – Securing patents early to build investor confidence.
• FDA Navigation – Assigning experienced regulatory staff before runway depletion.
• Partnership Building – Establishing collaborations that align with the exit vision.

bMedtech startups should treat acquisition as the North Star, not an afterthought. A clear exit strategy keeps founders focused on integrating their work into a larger ecosystem, ensuring competitiveness in a sector where timelines, approvals, and partnerships determine the fate of promising ideas.

Judyanna Yu

Managing Partner of One Six 8 Ventures

• Leads investment strategy across technology & sustainability sectors
• Guides portfolio companies toward scalable growth & market positioning
• Champions inclusive leadership culture within venture ecosystem

Background Highlights

• Previously served as senior operating partner at VC firm Redstone Capital
• Earned MBA from Harvard Business School and BSc in Engineering from MIT
• Authored articles on responsible investment & inclusive leadership in Digital Journal

— Photo by Jennifer Friesen, Digital Journal

The case for smart money

Canada’s Medtech Startups: Rethinking “Smart Money”

Founders who want to keep their companies Canadian face a simple question: can they secure \u201csmart money\u201d? That capital not only funds ventures but also provides operating know‑how and opens doors to international partners.

Yu’s Global Lens

• Yu’s own network spans physicians, scientists, and operators who have built and exited health companies in foreign markets.
• She believes that perspective is essential to help Canadian startups think bigger, sooner.

Momentum in Canada’s Biotech and Medtech Ecosystem

Since returning to Canada during the COVID pandemic, Yu observes a surge in investors, government grants, and ecosystem players who are pushing things forward in the biotech and medtech space.

Yet she cautions that the pull of larger capital pools elsewhere remains strong.

“It does, and it’s unfortunate,” she says. “There’s just a lot more capital outside of Canada right now, but we are seeing a change that there’s more smart money coming into Canada. So hopefully with that, there’ll be more companies choosing to stay in Canada.”

Yu’s Mission: Deep Operating Experience Meets International Reach

Yu aims to combine deep operating expertise with global reach so Canadian medtech companies can grow at home without being forced to relocate to succeed.

Her optimism is rooted in the idea that founders shouldn’t have to choose between building for a local market and competing globally.

First‑in‑class Breakthrough Technologies

• Canada is producing truly groundbreaking technologies.
• These innovations fill major gaps in health inefficiencies.
• Yu is excited because they are developing something novel that is really filling a big gap in health inefficiencies.

Looking Ahead

As the sector looks forward, smarter investment may be the key for Canada’s medtech founders to transform homegrown breakthroughs into global success stories.

Watch the interview: