How much funding can be received?

Funds up to 40% of admissible expenses, capped at $350000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Proof-of-Concept Program?

Proof-of-Concept Program is funded by Natural Products Canada (NPC)

What are Proof-of-Concept Program's eligibility criterias?

Canadian incorporated SME or start-up company Novel natural product or technology at TRL 4-9 Potential for $10M–$15M annual revenue within a reasonable period

Proof-of-Concept Program

Last Update: July 18, 2025

Canada

Financing for natural product innovations

Proof-of-Concept Program at a glance

Eligible Funding

From $100,000 to $350,000
Up to 40% of project cost

Timeline

Open Date : July 8, 2020

Financing Type

Grant and Funding

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing
Administrative and support, waste management and remediation services
Health care and social assistance

Grant Providers

Natural Products Canada (NPC)

Status

Open

Overview of the Proof-of-Concept Program program

If you are a researcher, startup, or SME, get financing of up to $250,000 to cover up to 40% of the costs of demonstrating the commercial viability of innovative natural products or technologies.

Financing terms and conditions

Non-dilutive, non-repayable contribution covering up to 40% of project costs, to a maximum of $350,000 over an 18-month period.
Applicants must contribute at least 60% of the total project costs.
Combined government funding (federal, provincial, municipal) cannot exceed 75% of eligible costs for SMEs and start-ups, and 100% for academic research institutes.
Minimum NPC contribution per project is $100,000.
A non-refundable project administration fee of 5% of total project costs, plus GST/HST, is required (not eligible for reimbursement).

Eligible projects & activities

Demonstrating the commercial feasibility of innovative natural products or technologies through animal, field, demonstration, or human trials.
Advancing the development and commercialization of novel bio-based products or technologies with biological components.
Moving products or technologies from intellectual property disclosure towards spin-out or licensing opportunities within academic institutes.
De-risking subsequent investment by establishing proof of concept for natural product innovations.

Examples of admissible projects:

$ 80,000

Conduct animal trials for a new veterinary medicine

$ 100,000

Field trials of a new eco-friendly pest control system

$ 100,000

Human trials for a new organic skin care product

$ 100,000

Demonstration trials of a new solar energy system

$ 100,000

Human trials for a new biomedical device

$ 100,000

Develop a biodegradable packaging material and conduct field trials

Eligibility criteria of the Proof-of-Concept Program program

The applicant must be a Canadian incorporated SME, start-up company, or academic research institute.
The project must involve a novel natural product or technology that aligns with NPC’s definitions of natural products or technologies and falls within Technology Readiness Levels (TRL) 4-9.
The company must be a member of Natural Products Canada (NPC).
SMEs and start-ups must have the potential to achieve $10MM to $15MM in annual revenue within a reasonable period for their market or sector.
The project must demonstrate potential for significant economic, social, health, and/or environmental benefits, and commercial feasibility in Canada.

Who is eligible?

Canadian small and medium-sized enterprises (SMEs)
Canadian start-up companies
Academic research institutes in Canada
Companies developing innovative natural or bio-based products and technologies

Eligible expenses

Eligible project costs that are directly related to establishing the commercial feasibility of the innovative natural product or technology, reimbursed upon approval of quarterly reports with required invoices and proof of payment.

Eligible geographic areas

Canadian incorporated companies and academic research institutes.

Eligibility criteria of the Proof-of-Concept Program program

Novelty of the natural product or technology.
Market opportunity.
Business model.
Competitors.
Strength of the management team.
Key milestones and impact of reaching them.

How to apply to the Proof-of-Concept Program program

Initial Contact

Reach out to NPC by emailing [email protected] to express interest in the Proof of Concept Program.

Eligibility Assessment

Engage with an NPC team member to review the Minimum Eligibility Requirements for the program.
Discuss the scope of the potential project to determine fit with the program’s objectives.
Receive an invitation to submit an application if eligibility requirements are met.

Application Preparation

Prepare a comprehensive application including details on the novelty of the product or technology, market opportunity, and commercialization strategy.
Include information about competitors, trial design, and risk mitigation strategies.
Document the qualifications of the individuals or centers conducting the trials.

Application Submission

Submit the application as requested by NPC, ensuring all documents and details are complete and accurate.

Feedback and Revision

Receive initial feedback from the NPC team and revise the application as needed.

Final Review and Notification

Await final review by the Commercialization Sub-Committee composed of NPC Board members and an external industry expert.
Receive a notification regarding the final funding decision.
If the application is not approved, review feedback and consider submitting an appeal within 15 days if applicable.

Additional information

NPC programs do not support IT or mechanical solutions unless a biological element is a key component of the innovation.
A non-refundable project administration fee of 5% of total project costs plus GST/HST is required, and this fee is not eligible for funding.
Applicants must be members of Natural Products Canada (NPC).
An annual report is required each year during the project and for five years following its completion.