On November 12, Québec's Ministry of Economy, Innovation and Energy (the Ministry) announced the immediate suspension of three funding programs for Québec startups: Impulsion PME, the Programme de développement économique pour l'aide à la redynamisation des territoires (DÉPART), and Biomed Propulsion. These programs, administered by Investissement Québec (IQ), supported startups across various stages and sectors, particularly in high-potential fields like biomedical innovation and regional economic development.
All three programs were suspended simultaneously and are no longer accepting new applications. IQ will continue evaluating files that were formally received prior to the November 12th notice.
The program suspensions are in addition to five other funding programs that were halted since the beginning of 2024. The Ministry announced the program suspensions were necessary due to the strong level of interest and to ensure fund availability for ongoing and future commitments. At the moment, it is unclear whether the Ministry will restart the programs in the future.
Funding programs like Impulsion PME and Biomed Propulsion provided financial support for startups developing innovative technologies. Without these resources, early-stage startups may face difficulties moving from concept to commercialization, possibly reducing Québec's contributions to global innovation.
The DÉPART program was designed to revitalize Québec's underdeveloped regions by fostering entrepreneurship. Its suspension could disproportionately affect startups in such areas, slowing economic growth outside urban centers like Montreal.
Government-backed funding often signals stability and growth potential to private investors. The removal of such programs could create uncertainty, deterring private investment and driving entrepreneurs to seek opportunities in other provinces or startup ecosystems.
Québec has long been celebrated as a thriving hub for entrepreneurship and innovation. The province is home to a highly skilled workforce, leading research institutions and a collaborative ecosystem that consistently drives growth. Over the years, the Québec government has played a crucial role in cultivating this environment by providing robust support to startups and entrepreneurs.
While the suspension of these programs may be viewed as an immediate setback, it could also mark the beginning of a more streamlined and targeted approach to startup funding. If choosing to reallocate resources and redefine priorities, the government has an opportunity to build a stronger, more efficient framework to support the next generation of Québec startups.
Québec's entrepreneurs have always been resilient, and its ecosystem remains a beacon of innovation. McMillan is here to support startups and entrepreneurs as they navigate these changes. With our deep understanding of the Québec ecosystem, we can help develop strategies to adapt to evolving funding landscapes and seize new opportunities.
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2024
