SR&ED and IRAP Funding Available to Assist Canadian Technology Startups

A recent PwC report found that Canadian start-up companies are looking more into building their business than into Mergers & Acquisition exits. Government funding provides significant assistance for Canadian technology start-ups, with 50% of start-ups surveyed applying for at least one source of funding, according to the report. Amongst these start-ups, 35% said they took advantage of “Scientific Research and Experimental Development” tax credits (SR&ED), while 20% said they dipped into the Industry Research Assistance Program (IRAP).

Canadian start-up companies can take advantage of both SR&ED and IRAP programs.   IRAP can assist start-ups with upfront funding, prior to the onset of a R&D project.  IRAP can provide SME’s with up to $250,000 to encourage technological innovation, and is administered by the National Research Council (NRC). On the other hand, SR&ED is administered by the Canada Revenue Agency (CRA), and reimburses companies for R&D expenditures after they have been incurred.

 

NorthBridge Consultants’ Canadian Business Blog is dedicated to bringing businesses news and information to help them identify and access the most appropriate government funding programs.

We offer opinions and insider information that can provide a pulse on government initiatives, the health of the Canadian economy, and firsthand thoughts from Canadian business owners.

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