Proof-of-Concept Program
Highlights
This program is designed for businesses like yours that are developing innovative natural products or technologies. By participating, you can receive up to 40% of your project costs, with a maximum of $350,000 over 18 months. This funding is non-dilutive and non-repayable, meaning you won't have to give up equity or pay it back.
What's in it for you?
- Financial Support: Up to $350,000 to advance your project.
- Commercial Feasibility: Demonstrate the market potential of your innovation.
- Non-Dilutive Funding: Keep full ownership of your business.
This program is easier to qualify for than many others, as it focuses on projects with clear commercial potential. Approval can help you de-risk subsequent investments and accelerate your path to market.
Financing Details
Type of Financing: Non-dilutive, non-repayable funding
Repayment Terms and Interest Rates:
- There are no repayment terms or interest rates, as the funding is non-repayable.
Eligible Expenses:
- Eligible project costs that demonstrate commercial potential via animal, field, demonstration, or human trials.
Use of Funds:
- Funds can be used to cover up to 40% of the cost of the proof of concept project.
- The maximum funding amount is $350,000 over an 18-month project period.
- The applicant must contribute 60% of the project cost.
Ineligible Expenses:
- The program does not support basic research activities.
Fees:
- A non-refundable project administration fee of 5% of total project costs plus GST/HST is required.
- This fee is not considered an eligible project cost.
Qualifications
- Must be a Canadian incorporated SME, start-up company, or academic research institute.
- Must have a novel natural product or technology that aligns with NPC’s definitions of natural products or technologies.
- Must fit within the TRL 4-9 of the Government of Canada’s Technology Readiness Levels.
- SMEs and start-up companies must have the potential to achieve $10MM to $15MM in annual revenue within a reasonable period for the market or sector.
- Products or technologies developed within academic research institutes must address an industry/sector challenge with significant market potential.
- Must demonstrate potential for significant economic, social, health, and/or environmental benefits.
- Must show technological advancement and benefits to the natural products ecosystem across Canada.
- Must prove technical feasibility of the project.
- Must have potential for commercialization in Canada.
- Must show potential spillover benefits to more than one sector.
- Must demonstrate potential for improving the representation of women, visible minorities, and Indigenous peoples in the natural products ecosystem.
- Must be a member of Canada’s Natural Product Innovation Cluster.
Must have a minimum NPC Contribution of $100,000.
Disqualifications:
- Technologies and solutions based on IT (software, hardware, AI, etc.) or mechanical solutions (drones, automation, etc.) that exclude a biological element.
Description
The Proof of Concept Program offers a great opportunity for your business to explore the commercial potential of your innovative natural products or technologies. You can receive up to 40% of the project costs, with a maximum of $350,000 over an 18-month period. This funding helps you test your ideas through animal, field, demonstration, or human trials, ensuring they are ready for the market.
Your business will need to cover the remaining 60% of the project costs. The funding is non-dilutive and non-repayable, meaning you don't have to give up any ownership or pay it back. This allows you to focus on advancing your product without financial strain.
The program is designed to help you prove that your product or technology is commercially viable. This can lead to further investment and growth opportunities. By participating, you can demonstrate the value of your innovation, making it easier to attract investors and partners in the future.
Program Steps
Contact NPC: Reach out to NPC at [email protected] to express your interest in the program.
Initial Review: An NPC team member will follow up to review the minimum eligibility requirements and the scope of your potential project.
Prepare Documentation: Gather the necessary documents for your application. These include:
- Business plan
- Financial statements
- Details of the innovative natural product or technology
- Intellectual property documentation
- Project plan outlining the commercial feasibility study
- Budget and funding sources
- Resumes of key team members
Submit Application: If you meet the eligibility requirements, submit your application through the NPC portal. Ensure all required documents are included.
Application Evaluation: Your application will be evaluated based on criteria such as the novelty of the product or technology, market opportunity, business model, and trial design.
Feedback and Revision: NPC will provide initial feedback. You may need to revise your application based on this feedback.
Final Review: If your revised application meets the criteria, it will proceed to the Commercialization Sub-Committee for final review and funding decision.
Notification: You will be informed of the final funding decision. If approved, you will receive a contract outlining the project scope, reporting requirements, and key deliverables.
Project Administration Fee: Pay the non-refundable project administration fee of 5% of total project costs plus GST/HST.
Quarterly Reporting: Submit quarterly reports including written and financial claims, invoices, and proof of payment to receive reimbursement of eligible project costs.
Annual Reporting: Provide an annual report during the project and for each of the five years after the project ends.