Understanding Canada’s Tech Funding Landscape
éphémère Creative
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Originally posted on our blog.
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Navigating the world of funding for tech projects in Canada can feel a bit like wandering through a maze. The possibilities are vast — from government grants to tax credits, foundation endowments, and more. However, we’re going to focus on a few specific funding opportunities that have touched our work in some way — either through a client or personal experience. We believe a first-hand perspective is the most insightful.
SR&ED: Fueling Innovation
Starting with?SR&ED, or “shred” as it’s affectionately called, this program is a federal tax incentive designed to promote scientific research and experimental development within Canadian businesses. The idea is to spur on innovation, with the program providing tax refunds for eligible research and development costs.
Now, you can’t just do standard off-the-shelf development and hope for a refund. SR&ED encourages doing something different, something interesting. Imagine integrating two disparate systems to make them communicate with each other, all while overcoming complex technical challenges. Or perhaps coming up with a novel way to process complex data, more efficiently than anything commercially available. That type of development generally comes with a lot of uncertainty that requires some research and experimentation. That’s the kind of innovation SR&ED supports.
IRAP: Aiming for Commercial Success
Next up is?IRAP, a program managed by the National Research Council of Canada, designed to boost the development and commercialization of innovative technologies. It provides funding and support for small to medium-sized enterprises.
From our experience, IRAP places considerable emphasis on the economic potential of your tech product. It’s not just about developing something innovative, but also something that’s capable of generating revenue. IRAP provides a variety of support, including financial support as well as business advisory services, technical services, and training. An important point to note is that while SR&ED provides funding in the form of refunds on expenses, IRAP provides a range of financing which can sometimes include up-front financing. You’ll want to consult with IRAP or a qualified advisor for the most accurate information for your particular situation.
The Potential of Student Funding
Canada invests significantly in attracting and nurturing student talent. As a result, a variety of programs offer funding for hiring students.
MITACS: Bridging Academia and Industry
MITACS?offers funding for hiring university students, fostering a strong relationship between academia and industry. It enables businesses to work with students and their professors to create exciting, new technologies.
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WIL: Promoting Work Integrated Learning
The Information and Communications Technology Council offers the?Work Integrated Learning (WIL) program, which provides funding for hiring students for co-op or internship-style programs. The program helps to shoulder up to 50% of a student’s salary, or even 70% if the student comes from an underrepresented group.
DS4Y: Cultivating Digital Skills in Youth
Another promising program is the?Digital Skills for Youth?(DS4Y). Although highly competitive, DS4Y offers up to $30,000 per intern for hiring unemployed or underemployed youth and developing their digital skills.
Exploring Specialized Grants
Beyond the programs mentioned above, there’s a plethora of specialized grants, each catering to different needs and sectors.?Eco.ca, for instance, provides wage subsidies for those working in the environmental sector. Each grant has its own set of eligibility criteria, so you’ll have to do some careful navigation. However, the rewards can make this journey worthwhile.
Remember, the Canadian tech funding landscape is vast and varied. Take the time to explore and find the opportunities that align best with your goals. It might seem like a maze, but the right support can help you find the way.
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