Funding is a key challenge for
technology start-ups. Often, early-stage companies rely on
bootstrapping until they develop to a point where they are able to
raise equity through Series funding. However, there are a variety
of government programs that can ease this transitional burden by
providing funding. Scientific Research and Experimental Development
(SR&ED) is one of the most common sources of government funding
for technology companies, but it by no means the only money out
there. Other programs often come in the form of wage subsidies, as
they are focused on trying to create jobs for Canadians, but other
government grants and credits exist.
Some programs, like SR&ED,
offer funding if you meet the eligibility requirements. But other
programs are competitive and require applications, as there is a
limited pool of grant funds. Having a business plan and a prototype
increases the chance of success with these programs.
