Government Assistance and Programs for Entrepreneurs

Government Assistance and Programs for Entrepreneurs Elissa Meiklem & Geoffrey Clarke Industrial Technology Advisors Industrial Research Assistance Program National Research Council Canada September 30, 2015 1

What is IRAP? 60+ year history of supporting research and development for small and medium sized enterprises SME s(<500 employees) Federal funding program that is administered through a network of Industrial Technology Advisors (ITAs) over 240 ITA s across Canada Veteran R&D professionals extensive experience in a number of industrial sectors. act as trusted advisors, often establishing long-term relationships with their clients. Although ITA s are located throughout Canada, all clients have access to the collective wisdom and expertise of the ITA community. The ITA-client relationship is what sets the Program apart from many other federal and provincial governments programs. 2

More than the $ What is an IRAP? A Federal Govt. program to help accelerate technology companies? Yes! The Industrial Research Assistance Program (http://www.nrccnrc.gc.ca/eng/ibp/irap.html) How does it Work? Funding support for technology innovation plus advisory services For qualified technology-focused SMEs BC or Canada Incorporated The funding part - a monthly cash flow program that reimburses for costs incurred. The advisory part advice, coaching, connectors, raising financing Multiple programs R&D, Youth 3

IRAP worked with 9,385 SMEs* in 2011-2012, of which 1,853 received some form of funding 80% < less than 50 employees $1 - generates $10 value Also fund not-for-profits Our Clients * Small- and medium-sized enterprises (SMEs) Firms with up to 500 employees

IRAP Funding Programs Core R&D / Technology Development Projects feasibility, prototype development, product innovation What s IRAP-able? R&D projects that are novel, have technical risk, some degree of market validation, and provide benefits to Canada Small projects <$50K, Larger projects 100s of $K Support up to 80% of internal salary costs and 50% of contractor costs Youth Employment Program hire post-secondary graduates - science, engineering, technology, business and liberal arts graduates unemployed or under-employed (under age of 30, Canadian or PR, $17K over 6 months) Contributions to Organisations CtoO Non-profits Providing direct services to SME s Local support : ICS Innovation Central Society 5

Eligibility If a company is: For profit Located in Canada Incorporated 500 employees or less We serve a variety of clients but the sweet spot is companies that are poised to grow but need support to stay focused on R&D mainly for dedicated human resources. 6

Meeting at company s site An ITA will visit the client preferably at location To better understand business structure (ownership, management, etc.) business strategy Nature of activity (products/services, clients, competitors, R&D, etc.) Available resources (human, material, etc.) Client will learn How we can contribute to achieving their business goals Our variety of services The trusting relationship Conditions of contribution 7

Services Innovation-related services NRC-IRAP network of organizations Strategic, competitive information Linkages with potential partners in Canada and abroad Financial support for hiring a recent graduate Financial support for innovation projects 8

Project Definition Definition of the business opportunity Identify clients needs how much to apply for? Factors milestone, firm contribution, team size Decision buy vs. develop technology Define project, objectives, resources, deadlines, etc. Internal support 80% tech salaries (not including overhead) Contractor support 50% costs (except BIAP = 75%) 9

Proposal for IRAP Financial Support Your proposal must: Provide an overview of your business Contain a clear description of the activities necessary to achieve your project Identify clear and measurable objectives Elaborate a realistic budget that is coherent with your project s activities and resources Identify other sources of financing, if necessary Understand what the terms and conditions are ITA will provide a template at the right time 10

Proposal evaluation Understanding of business opportunity Evaluation of the firm (its capabilities) Evaluation of the project content and technical risk Approval 11

Project Management and Follow-up Support throughout the life of the project Monthly online claims Monthly status reports Payroll and timesheets data to support claim Post project assessment Support to manage change Amendments when change of resources, rates, costs occur Follow-up Impact and benefits to Canada 12

Takeaways - IRAP Contact IRAP advisor (ITA) before client applies. Build a trusted relationship open, honest, your challenges. Use ITA s advisory services guidance, connections Understand what metrics you need to meet to get funded. Demonstrate clarity, focus, path to market validation / profit When invited to fill a proposal be timely and accurate When executing an IRAP project be timely and accurate Make sure your accounting and legal is solid 13

Industrial Research Assistance Program (IRAP) Thank you