FedDev IBI
- Official Weblink: http://www.feddevontario.gc.ca/eic/site/723.nsf/eng/h_00324.html
- Company Eligibility: (for-profit)
- High-growth businesses & new entrepreneurs operating in Southern Ontario, CND registered
- <50 employees, leveraging new Investment from Angel and Capital Investments
- Investment by Canadian Accredited source: >2 Angels (arms-length) or at least 1 Venture Capitalist, due diligence available (can be US Investors but need to accredit in CND),
- Have available funding confirmed at start of IBI project request, to match contributions
- Funding Projects Eligibility (Early-Stage Businesses)
- Business Development (new hires, building up management, new processes and systems, and improving governance and investment readiness, etc.);
- Late-stage product development geared towards market diversification & growth;
- Customer and market development;
- Implementing marketing and distribution strategies.
- Funding: Max $1million, but typically between $350-$750k based on 33% project costs; repayable loan structure which starts after project ends (typically 2-3yrs or based on funding cycle timeline).
- Application Turnaround: Depends on funding availability, typically 2-3 months
History:
The Investing in Business Innovation (IBI) initiative provides mentorship, entrepreneurial support and financing to help new businesses grow and succeed. The initiative is designed to foster a more competitive Southern Ontario economy by focusing on providing business support to new entrepreneurs, helping them transform their ideas into globally-competitive products and services by increasing their access to advice and private sector investment. Originally designed towards accelerating the closing of investment deals into for-profit businesses with proper due diligence being conducted by the independent and accredited investors. This is where the structure of 33 ⅓ % project funding started under IBI; essentially, if $1m VC deal is made into an eligible business, that business could request a $500k IBI loan for a project valued at $1.5m over a set period of time, against eligible spending categories.
FedDev Ontario delivers a number of programs to help create, retain and grow businesses and cultivate partnerships here in Ontario. These include such programs as Advanced Manufacturing Fund; Community Infrastructure Programs; Economic Development Initiatives; Investing in Business Growth and Productivity (IBGP); IBI; Investing in Commercialization Partnerships and Regional Diversification. The program also funds various 3rd party programs (AIME, JumpStart, SmartStart Seed Fund, SOFII, etc.). The IBI program mentioned here primarily focuses on high-growth business technology enterprises, primarily B2B focused, and with some proven traction established towards becoming a world-leading innovation organization based here in Ontario.
Next Steps towards Applying:
- Review Materials via above weblink
- Contact your local FedDev Office to talk with a Business Case Manager
- Review Application Outline Online & via our Draft template outline below
- Work directly with your Assigned FedDev rep to determine Eligibility & Next Steps
FedDev IBI Drafting Guide
Note: GetGrants does not act as a liaison between your business and the funding agency. It is the company’s responsibility to contact the agency and its representatives directly and work towards determining applications’ next steps, requested documentation, and submission. GetGrants supports the internal drafting of key materials as professional and experienced writers for this program. No contingent fees apply, strictly fixed or hourly agreements.