On Tuesday February 11, 2014, Finance Minister Jim Flaherty
presented the Canadian federal budget for fiscal year 2014-2015.
The budget proposes to provide an additional $40 million over four
years to the Canada Accelerator and Incubator Program
("CAIP") starting in 2015-2016. The organizations that
will receive the incubator financing will be announced in the
The Federal Government launched CAIP in September 2013 as part
of the Venture Capital Action Plan. In last year's budget, the
government allocated $60 million over five years to CAIP. This
brings the total federal funding for CAIP to $100 million.
The relevant portion of the 2014 federal budget can be found here.
Business accelerators1 and incubators2
provide startup companies with a range of support including
mentoring, office space, and financing. They play an important role
in assisting entrepreneurs to realize the business potential of
their ideas and create new companies. CAIP provides funding in the
form of non-repayable contributions to outstanding and
high-potential accelerators and incubators that meet the required
More information on eligibility, selection criteria, and
proposals to CAIP can be found here.
This support of entrepreneurship comes soon after the Ontario
government, through the Ministry of Research and Innovation (the
"Ministry"), committed to investing $190 million over the
next six years to the Research Excellence and Research
Infrastructure programs under the Ministry of Ontario Research Fund
(see our blog post
The Ministry also supports entrepreneurship and advancement
through the Innovation Demonstration Fund and Ontario Venture
Capital Fund (see our blog posts
1 Accelerators are generally for-profit organizations
owned and operated by venture capital investors.
2 Incubators are generally not-for-profit organizations
that provide similar services but usually for a longer tenure with
broader services. They are often sponsored by colleges,
universities or economic development corporations.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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