12 MUST-KNOW FUNDING SOURCES FOR TECH STARTUPS IN CANADA

Starting a tech biz is thrilling, but it also takes a big investment to bring your ideas to life and make your biz a success. You need to cover the costs of gear, software, office space, and staff salaries, which adds up fast.

Thankfully, funding can give your startup the cash infusion it needs to focus on developing your product and growing your biz without stressing about the costs of starting a company.

Luckily, plenty of funding options are available in Canada to help fuel your startup. In this article, we’ll talk about the best funding sources for tech startups.

Futurpreneur Canada

Futurpreneur Canada is a financing program that provides collateral-free loans to startups at a better interest rate than most banks. With the ability to finance up to $20,000 per business (minimum $5,000), the program also offers additional funding of up to $40,000 through its partner, BDC. The program provides funding and two years of expert mentoring support to help startups get started on the right track. The loan is repayable over five years, with interest-only payments required in the first year. There is no penalty for early repayment of the Futurpreneur portion of the loan.

Amount: Up to $60,000

Eligibility: Canadian citizens or permanent residents aged 18-39, who have a business idea and are ready to start a business.

Application Process: The application process is straightforward, with just one application required for both financing options on the Futurpreneur website. The application process involves filling out an online application form, submitting a business plan, and completing an in-person interview.

Business Development Bank of Canada (BDC)

The Business Development Bank of Canada provides financing and support to Canadian entrepreneurs. The BDC offers a range of financing options, including loans, venture capital, and equity financing, to help startups grow and succeed.

It’s worth noting that if you’re located in the Peterborough and Kawarthas area of Ontario, the Business Development Bank of Canada has partnered with the Innovation Cluster to provide additional support to startups in the region. 

Through this partnership, entrepreneurs can access expert advice, networking opportunities, and funding to help them start and grow their businesses.

Amount: Varies depending on the financing option selected.

Eligibility: Canadian businesses looking for financing and support to grow and succeed.

Application Process: The application process involves filling out an online application form, submitting financial statements and a business plan, and undergoing an assessment by a BDC financing specialist.

Community Futures Peterborough

Community Futures Peterborough is a non-profit organization that provides financial assistance, business counselling, and training services to entrepreneurs and small businesses in the Peterborough region. The organization offers three types of loans for tech startups:

Inventory Loan: Up to $10,000

Micro Loan: Up to $20,000

Expansion Loan: Up to $300,000

Eligibility: Tech startups must have a solid business plan and a clear path to profitability. Applicants must be Canadian citizens or permanent residents, and the business must be located in the Peterborough and Kawarthas region.

Application Process:

1. Connect with an advisor to discuss your project and needs.
2. Complete the application form and provide all supplemental information to Community Futures Peterborough.
3. The Loan Committee reviews your application, and a decision is made.

The startup must sign a loan agreement and provide collateral or a personal guarantee if the loan is approved. Community Futures Peterborough evaluates each application on a case-by-case basis and aims to decide within a few weeks.

To learn more about funding sources for tech startups, read our full blog.

About the Innovation Cluster

The Innovation Cluster is a not-for-profit organization that drives innovative, determined entrepreneurs in the formation and growth of their technology-based companies. Supporting four key sectors, agtech, digital, healthcare, and with a strong focus on cleantech, the Innovation Cluster’s dynamic programming and mentoring ensures startups find their best path to market.

Core Funding is provided by The City of Peterborough, Trent University, Fleming College, Peterborough Region Angel Network, The City of Kawartha Lakes, OMAFRA, Feddev Ontario, Ontario Trillium Foundation, and Peterborough Utilities Group. Visit www.innovationcluster.ca