Investing in Business Innovation – application information requirements (for-profit applicants applying for early-stage companies funding)

Important:

  • Before you begin, please complete the PDF Application. If you experience difficulty when opening the PDF Application, please refer to the instructions posted in the FAQs.
  • Please prepare a proposal that responds to the information requested below. Applicants are required to clearly address each item.
  • Review the guidelines for this program carefully to ensure your proposal demonstrates how it meets program requirements and objectives.
  • Attach your completed proposal to the PDF application form using the 'Add Attachments' button on that form.
  • For help with your application, please call FedDev Ontario at 1-866-593-5505.

A. Applicant Information

  • Provide a brief overview of your company (founding date, history, major products/services and markets, presence in Canada and globally, number of employees by location, etc.).
  • Provide the name and relationship of all legal entities related to your organization (parent, subsidiaries and affiliates).
  • Provide a list of your organization's shareholders, including name and percentage of ownership. If your organization has a parent, provide a similar list of your parent's shareholders.
  • Provide a list of the members of your organization's board of directors.
  • Provide your organization's articles of incorporation or letters patent.
  • Provide historical financial statements for the last two (2) fiscal years and the most recent interim financial statement.
  • Provide a summary of any federal or provincial government funding your organization has received within the last three (3) years, including:
    • Department/agency name;
    • Program name;
    • Dollar amount and type of assistance;
    • Description and purpose of the funding; and
    • Contact person at that department/agency.

B. Your Organization's Business Model and Impact of the Proposed Project

Project Overview

Please provide the following information:

  • Brief overview of your proposed project;
  • Description of the technology(ies) or equipment to be adopted and identify if and how they are leading-edge or innovative. For example, describe whether the technology is new to your company, the industry, Canada, etc.;
  • Strategic rationale for undertaking your project and how it fits with your business model;
  • Expected outcomes (e.g., innovation, research and development, sales, growth, market diversification, etc.);
  • Project start and end dates; and
  • Project location(s).

Customer Segments & Value Propositions

  • Describe each major product or service your organization currently provides and for each outline:
    • Key customer segments (include their percentage of your total revenue, as well as geographic, market and other relevant information); and
    • Value proposition provided to each customer segment (what value you are providing to each and why they buy from you).
  • Describe how your project will impact the value proposition to your current key customer segments and/or how your customer base will grow or change.
  • Attach evidence, including analysis and underlying assumptions, that validates and substantiates your market opportunity, revenue projections and business model. Include a due diligence report or summary from the investors summarizing their rationale for investing in the company.
  • If applicable, describe in more detail how your project will impact the products and services you offer.
  • List your major competitors, their location and estimated market share. Describe your organization's competitive advantage and describe how your project will affect your competitive position. Identify if your project will adversely impact other businesses in Canada.
  • Describe the company's competitive and market access challenges (e.g., regulatory approvals, market positioning, corporate mandates, etc.) and how the company proposes to mitigate these challenges.

Key Partners

  • Provide a list of partners/collaborators that are critical to delivering your organization's current value proposition. Partners/collaborators may include for-profit and not-for profit organizations, post-secondary institutions and community stakeholders. Describe their roles (in terms of customer relationships, channels, key activities and/or key resources).
  • As it relates to your project, please provide:
    • Name and location of all partners/collaborators (financial and non-financial);
    • Their anticipated roles (in terms of customer relationships, channels, key activities and/or key resources);
    • Their contributions to your project; and
    • Status of their support (to be requested, requested but not confirmed, or confirmed).
  • As it relates to your project, attach written confirmation of commitment (financial and non-financial) from relevant partner organizations, including evidence of their intended contribution.

Customer Relationships & Channels

  • Describe the current channels you use for sales/service, marketing and distribution.
  • Describe how your project will help to develop or strengthen these channels.

Key Activities & Resources

  • Describe the key resources currently in place and the key activities currently undertaken to create and deliver your organization's value proposition, including:
    • Description of existing plant/equipment, intellectual property (IP), etc.; and
    • Product/service value chain (e.g., where you source inputs, the activities you undertake to add value and if your product is sold into a global value chain).
  • Describe how your project will impact these resources and activities.
  • Indicate whether your project involves moving organizational assets (including physical and/or human) from one location to another including details of the assets and where they are being moved from/to.

Cost Structure & Revenue Streams

  • Describe your organization's current financial performance and sustainability (e.g., cost structure and revenue streams).
  • Describe the impact your project will have on strengthening revenue or reducing costs.

C. Project Plan

  • Provide an implementation schedule for your project. For each major project milestone provide the start date, end date and key activities.
  • Describe the accountability framework that will be used to effectively manage a multi-disciplinary, multi-institutional project and the management, operational and technical capacity to undertake the proposed project activities. Please include:
    • Project's governance structure and decision-making process;
    • Accounting, administrative and project management capacity;
    • Key human resources within your organization that have the necessary experience/expertise and additional expertise that may need to be acquired from outside the organization; and
    • Other experience and expertise required.
  • Provide a table of budgeted project costs by quarter and by cost category (labour, consulting and/or professional fees, other non-capital and capital). Describe any underlying assumptions and provide substantiation of forecasted costs (e.g., quotes, tenders, estimates, etc.).
  • Indicate and provide details on whether any partners (including related parties) will incur costs or have ownership of any key resources related to the project.
  • Provide a table of sources of cash funding and their status (to be requested, requested but not confirmed, or confirmed).
  • Provide a schedule of the company's monthly cash burn rate over the next two (2) years.
  • Provide the number of months of cash ("runway") available to the company based on the current cash on hand and with the expected new investments, including and excluding the requested FedDev Ontario support.
  • Provide a capitalization table, including:
    • Name of investor;
    • Their accreditation status (e.g., southern Ontario angel network or CVCA membership);
    • Type of investment (e.g., equity, debt, convertible);
    • Ownership percentage (fully diluted);
    • Amount of new investment; and
    • Timing of disbursement to the company.
  • Attach copies of signed term sheets or subscription agreements related to the financing of your project.
  • Describe the role your investors will play in strategic planning, day-to-day operations, marketing and sales, etc.
  • Provide details about any shareholder loans the company has currently.
  • Contributions from FedDev Ontario are paid on a reimbursement basis. Explain how your organization intends to secure bridge financing capacity.
  • Outline the track record of your organization's founders.
  • Outline the track record of your organization's management.
  • If applicable, provide a summary of the background IP necessary to complete the project and confirm whether your organization either owns or is licensed to use all related IP.
  • If applicable, describe how the ownership of IP is currently managed in your organization and how the ownership of IP developed through the project (foreground IP) will be managed (including what happens to IP if spin-off companies are created). Provide any documents related to your organization's policies and practices.
  • Identify and describe any significant risks and mitigation strategies related to project implementation and achievement of results.

D. Economic Impact and Results

  • Describe why FedDev Ontario funding is required and how it would make a difference. Describe the impact FedDev Ontario funding will have on any or all of the following: project scope (size), location (level of activity in Ontario), timing (project timelines), and economic benefits.
  • If applicable, please describe how your project will influence southern Ontario's position as a leader in your project's field of activity.
  • If applicable, describe how your project will contribute to the diversification of regional economies in southern Ontario.
  • With respect to the impacts specific to your project, please provide:
    • Total number of jobs to be maintained as a result of the project;
    • Total number of jobs to be created during the project; and
    • Total number of jobs projected to be created within two (2) years of project completion.
  • With respect to the impacts specific to your project, provide:
    • Sales increases by geographic market expected by project completion; and
    • Sales increases by geographic market expected within two (2) years of project completion.
  • Describe and provide any relevant metrics as to how your project intends to support the following program-specific objective:
    • Support the success of new businesses in developing globally-competitive products and services.
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