Impulsion SME
QC, Canada
Access to investment capital
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateMay 10, 2023
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Manufacturing
- Professional, scientific and technical services
- Health care and social assistance
grant_single|grantors
- Gouvernement du Québec
- Investissement Québec (IQ)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Investment for start-up of young innovative businesses with growth potential located in Quebec region.
grant_single_labels|projects
Eligible projects or activities for the grant include innovative and high-growth potential businesses. These should aim for a major fundraising within the next 24-48 months depending on the sector.
- Development of new products or processes
- Significant improvement of existing products or processes
- Projects involving intellectual property related to human or animal health
- Market validation agreements (excluding the life sciences sector)
- Personalized mentorship plans
grant_single|admissibleProjectsExample
$1,200,000
Toronto
Expansion of a green energy solutions company focusing on solar panel installation and maintenance
$750,000
Vancouver
Launch of a personalized mentorship program for entrepreneurs in the tech industry
$1,500,000
Montreal
Development of a cutting-edge AI-driven medical device for enhanced diagnostic accuracy
$900,000
Calgary
Market validation for innovative eco-friendly packaging solutions targeting retail businesses
$1,100,000
Halifax
Significant improvement of existing recycling processes to increase efficiency and output
$850,000
Quebec City
Creation of a mobile application for local farm-to-table delivery services
grant_single_labels|admissibility
The grant aims to help innovative high-growth potential Quebec-based companies during their pre-commercialization phase. To qualify, companies must meet specific criteria.
- The company must be innovative and have a high development potential.
- Have a minimum of two full-time paid employees.
- Have at least one client or a market validation agreement (not applicable for life sciences sector).
- Be referred by a recognized entity.
- Have a personalized support plan completed or validated and approved by the referring entity.
- Submit a letter of intent from a recognized investor outlining the main investment parameters.
- Plan a major fundraising and demonstrate investment needs within the next 24 months (48 months for the biopharmaceutical sector).
- Must not have completed a first commercialization cycle with total revenues under $2,000,000 in the last three financial years.
- Must not have completed a fundraising in equity greater than $250,000 from venture capital funds (not applicable for life sciences sector).
- Must not have received a previous investment from the Program.
grant_eligibility_criteria|who_can_apply
Yes, there are eligible types of companies for this grant, focused on young innovative companies with strong growth potential that are in the pre-commercialization stage and headquartered in Quebec. Exclusions apply such as non-profits, cooperatives, and specific sectors like retail and hospitality.
- For-profit companies across all economic sectors
- Companies with headquarters, decision centers, and most permanent jobs in Quebec
- Innovative companies with high growth potential
- Companies with at least two full-time employees
- Companies with at least one customer or market validation agreement (not applicable for the life sciences sector)
- Companies referred by a recognized entity
- Companies with a completed or validated personalized support plan approved by their referring entity
- Companies with an investment letter of intent from a recognized investor
- Companies planning a major fundraising within 24 months (48 months for the biopharmaceutical sector)
grant_eligibility_criteria|who_cannot_apply
Certain types of companies are not eligible for the Impulsion PME grant program. These include non-profit organizations, cooperatives, and specific sectors like retail, accommodation services, personal services, and gambling.
- Non-profit organizations
- Cooperatives
- Retail sector
- Accommodation services
- Personal services
- Gambling
grant_eligibility_criteria|eligible_expenses
The Impulsion PME grant does not specify eligible expenses.
- Nothing specified
grant_eligibility_criteria|zone
The eligible geographic zones for this grant are regions within Quebec, with specific distinctions for the Montreal metropolitan census area.
- General Quebec
- Montreal metropolitan census area
grant_single_labels|criteria
Yes, there are detailed evaluation and selection criteria for this grant. These criteria aim to assess the strategic positioning, innovation, market potential, and other key aspects of an applying company.
- Strategic Positioning: Analysis of competitive landscape and market differentiation.
- Degree of Innovation: Protection of intellectual property and creation of market barriers.
- Degree of Product Maturity: Technology Readiness Level (TRL) and stage of commercialization.
- Market Potential: Size and growth potential of the addressable market.
- Commercial Strategy & Client Acquisition: Marketing strategies and client acquisition plans.
- Presence of Strategic Investors and Signed Partnerships: Influence of strategic investors and partnerships.
- Management Team: Experience and capability of the team in managing the business.
- Business Model: Clarity and robustness of the value proposition and business strategy.
- Financial Projections and Risk Assessment: Completeness and credibility of financial forecasts and risk of loss.
- Impact on Quebec: Potential for job creation and value creation in Quebec.
- Importance of the Program in Financial Structuring: Necessity of the grant for financial closure and strategic benefits from governmental participation.
grant_single_labels|register
- Step 1: Ensure eligibility
- Confirm your business is in a sector that is not excluded
- Verify if your company's headquarters, decision center, and majority of permanent jobs are in Quebec
- Check that your business is innovative and has high growth potential
- Ensure you have at least two full-time employees
- Verify you have at least one client or a market validation agreement
- Make sure your business has not completed a first cycle of commercialization or raised funds exceeding $250,000 in equity (if not in life sciences)
- Confirm that you have not received an investment from the program in the past
- Step 2: Find a recognized entity
- Ensure that you are referred by a recognized entity
- Obtain and complete a personalized support plan validated and approved by the referring entity
- Step 3: Prepare required documents
- Draft a request for investment
- Prepare a personalized support plan validated and approved by the recognized entity
- Get letters of intent from recognized investors or private investors
- Obtain a letter of recommendation signed by the recognized entity
- Complete a due diligence form by the recognized investor
- Step 4: Submission of application
- The recognized entity submits the application documents to Investissement Québec
- Step 5: Evaluation and selection
- Investissement Québec, along with a committee, evaluates the applications
- Receive feedback on selection results from the committee
- If not selected, the application can be resubmitted
- Step 6: Application review process
- Application review and processing take place continuously throughout the year
grant_single_labels|otherInfo
Impulsion PME provides crucial funding to innovative startups in Quebec looking to scale significantly. The program aligns with private investment to match funds and foster growth through various forms of equity and quasi-equity financing.
- The maximum investment for biopharmaceutical sectors is $2,000,000.
- Other sectors can receive up to $1,000,000, with a limit of $750,000 for companies in the Montreal metropolitan area.
- Eligible companies must be located in Quebec and cannot be in certain excluded sectors like retail and hospitality.
- To qualify, companies must have a plan for a major funding round within the next 24 months (48 months for biopharmaceuticals).
- Past recipients of Impulsion PME funds are ineligible for new investments under the program.
grant_single_labels|contact
1-844-474-6367
Apply to this program
Boost Your Business with the Impulsion PME Program
The Impulsion PME program, managed by Investissement Québec, provides significant investment to young innovative businesses with high growth potential in the pre-commercialization stage, facilitating their first major funding round. The program offers matched equity or quasi-equity investments ranging from $250,000 to $2,000,000, with a focus on enterprises in Quebec.
Comprehensive Guide to the Impulsion PME Program
The Impulsion PME program, overseen by Investissement Québec on behalf of the Quebec government, is designed to assist young innovative companies with high growth potential in securing crucial capital during their pre-commercialization stage. This initiative helps companies attract new private investors for subsequent major fundraising efforts. This detailed guide aims to provide an in-depth understanding of the program, including its objectives, eligibility criteria, investment specifics, and the application process.
Program Objective
The primary goal of the Impulsion PME is to empower young, innovative companies with significant growth potential by providing them with access to investment capital at the early, pre-commercialization stage. By leveraging the commitment and expertise of recognized entities and investors, the program aims to help these companies bridge the crucial period before commercialization and subsequently attract new private investors for substantial funding rounds.
Investment Details
Through matched equity or quasi-equity investments, the Impulsion PME program supports companies with:
- Investments of at least $250,000.
- Maximum investments of $2,000,000 for biopharmaceutical sectors and $1,000,000 for other sectors (with a cap of $750,000 for companies in the Montreal metropolitan area).
- Equity or quasi-equity investments such as convertible debentures, Keep It Simple Securities, and Simple Agreements for Future Equity.
The program's investment will not exceed 50% of the total financial structure, ensuring a balanced funding strategy alongside contributions from private investors, who must adhere to the same investment parameters.
Eligibility Criteria
The Impulsion PME program is open to for-profit companies across various economic sectors, provided they meet specific criteria:
- The companies must be headquartered in Quebec, with their decision-making center and the majority of their permanent jobs located within the province.
- Non-profit organizations, cooperatives, and businesses involved in retail trade, hospitality, personal services, and traditional gambling sectors are excluded.
- The companies should be innovative, aiming to develop new products or processes or significantly improve existing ones.
- They must exhibit high growth potential with a business model that ensures rapid and strong growth over one to three years.
- Companies must have a minimum of two full-time employees.
- At least one client or a market validation agreement is required, with exceptions for the life sciences sector.
- Referral from a recognized entity is mandatory.
- A personalized support plan, completed or validated by the referring entity, must be provided.
- A letter of intent from a recognized investor outlining the main investment parameters is required.
- The company should anticipate a major funding round within the next 24 months (48 months for the biopharmaceutical sector).
Application Process and Documents Required
To apply for the Impulsion PME program, the following documents need to be submitted by the referring entity:
- An investment request form.
- A personalized support plan, either completed or validated and approved by the referring entity.
- One or more letters of intent from recognized investors or private investors.
- A recommendation letter signed by the referring entity.
- A due diligence form completed by the recognized investor.
Selection Mechanism
The referring entities initially select the most promising companies and submit their investment requests to Investissement Québec. A committee, in collaboration with Investissement Québec, reviews and evaluates these requests. Given that Impulsion PME is a competitive program, the selection results will be communicated to the companies and their respective referring entities. Companies that do not succeed in the first round can resubmit their applications at a later stage.
Possibility of Reinvestment
The program also includes a reinvestment envelope, allowing companies that have previously benefited from an initial investment to apply for additional funding in a new financing round. The eligibility and selection criteria for reinvestment are detailed in the program's comprehensive description, which can be downloaded for more information.
The assessment process of applications is continuous throughout the year, and submissions can be made at any time by the referring entity. For a thorough understanding of these requirements and the evaluation process, companies are encouraged to meticulously prepare their documentation and present a robust case for investment.
Evaluation Criteria
Applications are evaluated based on several strategic and performance metrics, including:
Products:
- Positioning Strategy: The assessment is based on how well the company understands its competition and differentiates its product in the market. A clear market niche and customer interest in the product's unique features are crucial.
- Degree of Innovation: Companies must show potential for patent filings, secret formulas, and substantial barriers to market entry to protect their innovations.
- Product Maturity: Evaluation of product readiness levels (TRL), with higher maturity indicating readiness for customer deployment and commercialization.
Market:
- Market Potential: The size and growth potential of the addressable market, supported by credible sources and comprehensive segmentation, are vital for eligibility.
- Commercial Strategy: The presence of a realistic and well-documented client acquisition strategy, highlighting cost and methods of customer acquisition, is essential.
Strategic Partnerships:
- Presence of Strategic Investors: The role of strategic investors in facilitating growth, board structuring, and providing access to market niches is taken into account.
- Significant Partnerships: Companies must secure partnerships or licensing agreements that open new market opportunities or geographic territories.
Management Team:
- Successful Entrepreneurial Profiles: The experience, academic background, and entrepreneurial track record of the management team are evaluated.
- Commercialization Experience: Experience in sales and understanding of commercial challenges, along with key partnerships, are significant indicators.
- Key Team Members: The management team's network and its ability to leverage contacts for business needs are assessed.
Financial Strength:
- Business Model: The clarity and robustness of the company’s value proposition, strategy, and business model are essential metrics.
- Financial Forecasts: Complete and credible financial forecasts, supported by documented assumptions, are crucial for investment consideration.
- Expected Returns and Risk of Loss: The investment terms, market standards, dilution expectations, and exit strategy are examined.
Impact on Quebec:
- Potential Positive Outcomes: The long-term vision of developing the business in Quebec and its potential for job creation and local value generation are key factors.
- Importance of Impulsion PME's Role: The necessity and strategic advantages of the Impulsion PME program in the company’s financial structure are considered.
For more details on the Impulsion PME program, including document submission and frequently asked questions, businesses and referring entities are encouraged to download the detailed program description. Companies can also participate in information sessions held every Thursday from 11:00 to 12:00. For additional information on various financial solutions provided by Investissement Québec, interested parties can call 1 844 474-6367.
