The Federal Economic Development Agency for Southern Ontario announced a new Investing in Business Innovation program. The program offers matching grants for early-stage venture funding. This is a $190 Million program running from 2010-2014.
There are provisions for startups and angel networks. Since we’re StartupNorth, let’s try to deal with the startup side first.
- Startups who receive a term sheet from a qualified angel investor (as defined by the Ontario Securities Commission) or venture capital firm (registered with the Canadian Venture Capital association) are eligible to apply for up $1 Million in loan from the federal government.
- Restrictions:
- Start-up businesses will be eligible for repayable contributions up to $1 million for no more than one-third (33⅓ percent) of total eligible and supported project costs.
- An angel and/or venture capital investor(s) must be committed to provide at least two-thirds (66⅔ percent) of the cash contribution toward eligible and supported project costs.
- In-kind contributions related to mentoring, networking, and other business skills cannot be considered as part of the angel or venture capital investor’s cash contribution.
- A maximum of one project per eligible start-up SME can be funded under the initiative.
- Direct eligible costs for start-up businesses may include:
- Labour, capital and operating expenditures;
- Materials and supplies;
- Consulting and/or professional fees (limited to market rate); and,
- Minor and non-capital acquisitions (e.g., software).
- All project activities must be completed by March 31, 2014;
To read the full, original article click on this link: New innovation funding in Southern Ontario « The RIC Blog
Author: David Crow
