The federal government has announced new funding for start-ups and angel investor networks in Southern Ontario with the new Investing in Business Innovation program.
The purpose of the new funding is to promote commercialization of new technical innovations, as well as to assist in finding venture capital or angel investment dollars from the free market. The aim is to speed up commercialization, increase investment and to encourage the growth of angel investment.
The program has $190 million in funding allocated towards it for the years 2010–2014. Start-ups are able to apply for up to $1 million of that funding to cover up to one-third of their expenses in the following areas:
- 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).
The other two-thirds of funding is to come from outside investors.
It’s worthwhile to note that this funding from the government is only available to start-ups that have already found some sort of capital from private sector investors. To help start-ups that haven’t found investment reach those investors, an online directory of start-ups will be created under the program along with other efforts to attract investors.
Not-for-profit angel investor networks are eligible for many of the same benefits as start-ups. Eligible networks are those who “support outreach and promotion activities to attract investment.” Individual networks are eligible for up to $50,000 in funding, and organizations representing networks may receive up to $2 million.
For more information on Investing in Business Innovation, visit FedDev Ontario’s website about the program here.