Getting R&D Funding for your Startup in Québec!
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Getting R&D Funding for your business Cedrin Law Matthew Starek
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If you ever decide to incorporate in Canada you may need additional sources of funding to foster your innovative startup! Foreign Affairs, Trade and Development Canada, along with the Government of Canada, provide funding programs to help take your business to the next level. With the overwhelming amount of information we find on the web, we will be covering some of the different governmental grants, how to apply, and how to make sure that your application truly stands out! Find out which funding programs are right for you, the type of financial assistance they provide and how to apply.
Transcript of Getting R&D Funding for your Startup in Québec!
Getting R&D Funding for your business
Cedrin Law
Matthew Starek
Who we are
Cedrin Law
Consultant
Matthew Starek
Consultant
• Extensive training and experience in Science and Business• Experience with successful funding applications (CIHR,
NSERC, Mitacs) for research and for start-up capital (fondation du maire, CYBF, Jeune Promoteur)
Alain Readman Valiquette
President
Innovation and Entrepreneurship
Lesson from Japan in the 1990’s
• Spend and # of people in R&D for SMEs increased significantly
Total Factor ProductivityIndicator of advances in tech and labour/capital improvements
R&D + Small Business = significant contributions to economy
Funding for SMEs
Loans, Grants, Equity,
Govt
Private
Specific R&D funding options available
Be passionate, patient and persistent
As with any funding, success requires effort, finding the right sources, and dealing with failure
Challenges
• Red tape
• Lack of transparency of funding criteria
• Being rejected
• Putting together an effective application
• The funding source with the right fit for you
All of these can be overcome with effort and the right resources/support!!!
Funds are out there, reach for them!
A search in the http://thefundingportal.com for:
• R&D funding in QC in IT and health sectors
• For a start-up with <5 employees
• Seeking <$100k
Yielded >100 programs and >$134M in funding!
Sources of External Funding
• Private Equity
• Loans
• Tax Credits
• Grants
What are the differences? Where can you get them?
Private Equity
Several Types:
1)Angel Investors / Friends & Family
2)Venture Capital
3)Private Equity Firms
Company X
Private Equity Investor
$
Company X
Private Equity Investor
$$$$
Private Equity - Example
Canada’s largest seed venture fund
Average Investment of $185,000
Provide resources and guidance
Loans
Several Sources:
1)Financial Institutions
2)Funding Agencies
3)Governmental Organizations
Company X
Lender
$
Company X
Lender
$$
Loans - Example
Canadian Media Fund:
a government and industry funded not-for-profit
Will fund innovative media projects by repayable advances
Tax Credits
Federal and Provincial
Cash refunds for R&D activities meeting specific criteria
Company X
Gov’t
$$$
Company X
R&D
$
Tax Credits - Example
IQ can provide liquidity for R&D activities
Up to 75% of the expected tax credit for the year
Grants
Several Sources:
1)Governmental Agencies
2)Government
3)Not-for-profit organizations
Company X
Granting Institution
$
Company X
Grants - Examples
Mitacs
NRC-IRAP
NSERC ENGAGE
NSERC I2I
Crowdfunding*
Who: academic researchers (salaries for grad students + postdocs)
How Much: Accelerate: $15k ($7.5k from Mitacs, $7.5k from partner org)Elevate: $57.5k ($25k from Mitacs, $32.5k from partner org)
How: Accelerate: 4-month project accepted anytimeElevate: Apply during Spring or Fall, two-year fellowshipContact Mitacs Business Development rep (https://www.mitacs.ca/accelerate/contact-us)
What: R&D activities that could benefit from graduate student research under faculty supervision, * requires investment from the company
Who: incorporated, profit-seeking SMEs
How Much: $500,000 max, 80% of salaries, 50% of consulting fees ($50,000 max for ARP)
How: consultations with Industrial Technology Advisors
What: innovative, technology-driven new or improved
products, services, or processes in Canada
Engage
Who: incorporated, profit-seeking SMEs (min 1yr old) and academic researchers
How Much: max of $25,000 for up to 6 months
How: applications through NSERC website
What: collaborative R&D projects in sciences or engineering
I2I
Who: academic researchers
How Much: market assessment; $15,000. Phase I; max of $125,000 for up to 12 months
How: quarterly applications (July 7, Sept 29)
What: market assessment and research for technologies that could be commercialized
Crowdfunding
Tell your story, share your idea, collect funds
Who: start-up SMEs in Montreal, Canadians or permanent residents
How Much: $5,000 - $30,000; up to 25% of start-up costs
How: Fall and spring (Sept), online application with business plan
What: business start-up costs (not for R&D specifically)
How to go about funding
• http://thefundportal.com
• http://fundica.com
Identify the right funding types/programs
• Know where to get requirements/instructions
• Seek assistance/feedback from available resources (i.e. D3, Consultants, Peers etc…)
• Contact representatives at the programs directly for info
Apply
Things to keep in mind
Know the eligibility criteria and
requirements
Put in the time and effort to prepare in
advance
Be ready to clearly explain why
research is needed
Know when to get help
Get others to read it and get critical
feedback
Resources
• http://www.thefundingportal.com/
• http://www.nsercpartnerships.ca/FundingPrograms-ProgrammeDeSubventions/index-eng.asp
• http://www.nrc-cnrc.gc.ca/eng/irap/index.html
• http://www.fundica.com/
• http://www.investquebec.com/quebec/fr/produits-financiers/tous-nos-produits/financement-des-credits-impot-remboursables.html
• http://www.crowdfunding.com/
• https://www.mitacs.ca/
THANK YOU
Alain Readman [email protected]
Matthew StarekConsultant and [email protected]
Cedrin LawConsultant and [email protected]
