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Source verified August 6, 2026
Proof-of-Concept Program
Supports proof-of-concept natural products and technologies
Funding available
$ 350,000
Deadline
Open continuously
Opened July 8, 2020
Location
Canada
Overview
Natural Products Canada’s Proof of Concept Program offers up to 40% of project costs, to a maximum of $350,000, for Canadian SMEs, start-ups, and academic research institutes to establish the commercial feasibility of innovative natural products or technologies. Supported projects include animal, field, demonstration, or human trials for bio-based innovations.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Conduct research and development activities
- Access new markets
- Start a business
Eligible Funding
- Maximum amount : 350,000 $
- Up to 40% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
- Public or Parapublic institution
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Activities that demonstrate commercial potential through animal, field, demonstration, or human trials.
- For companies, projects intended to demonstrate the commercial feasibility of products and technologies.
- For academic research institutes, projects intended to move a product or technology from intellectual property disclosure to near term spin-out and/or licensing opportunities.
Official resources
Eligibility
Who is eligible?
- Canadian incorporated SMEs
- Canadian incorporated start-up companies
- Canadian academic research institutes
Eligible expenses
- Employee salaries.
- Direct material costs.
- Subcontractors or consultants.
- Equipment, up to 10% of project costs.
- Other direct costs, such as participant recruitment costs or software licences, and indirect costs.
Ineligible Costs and Activities
- Basic research.
- IT-based or mechanical solutions without a biological element.
- Project administration fee of 5% of total project costs, plus GST/HST.
Eligible geographic areas
- Canada
Selection criteria
- Novelty of the natural product or technology.
- Market opportunity, business model, and competitors.
- Strength of the management team.
- The project to be undertaken, the position to be filled, and the qualifications of the candidate.
- The key milestones and the impact of the key milestones.
How to apply
- Contact Natural Products Canada to express interest in the Program.
- An NPC team member follows up with the company to review the Minimum Eligibility Requirements and the scope of the potential project.
- Companies that meet the eligibility assessment are invited to submit an application.
- Submit the application for evaluation; applications are accepted on an ongoing basis.
Processing and Agreement
- Successful applicants receive a contract from NPC that includes the project scope, reporting requirements, and mutually agreed key deliverables.
- Applications are initially reviewed by the NPC team, which provides feedback and allows applicants to revise the application.
- If approved by the NPC team, the application proceeds to the Commercialization Sub-Committee for final review and funding decision.
- Applicants are informed of progress throughout the process and notified of the final funding decision.
- An annual report is required during the project and for each of the five years after the project ends, and unsuccessful applicants may appeal in writing within 15 days of receiving the decision.
Additional information
- All applications are treated as confidential information and are only seen by those directly involved in the evaluation process.
Contacts
Frequently Asked Questions about the Proof-of-Concept Program Program
What is the Proof-of-Concept Program?
Natural Products Canada’s Proof of Concept Program offers up to 40% of project costs, to a maximum of $350,000, for Canadian SMEs, start-ups, and academic research institutes to establish the commercial feasibility of innovative natural products or technologies. Supported projects include animal, field, demonstration, or human trials for bio-based innovations.
How much funding can be received?
Proof-of-Concept Program Funds up to 40% of admissible expenses, capped at $350,000 per project.
Who is eligible for the Proof-of-Concept Program program?
To be eligible for the Proof-of-Concept Program program, you must:
Canadian incorporated SME, start-up company, or academic research institute
Novel natural product or technology aligned with NPC definitions and within Technology Readiness Levels (TRL) 4-9
Member of Natural Products Canada
What expenses are eligible under Proof-of-Concept Program?
Activities that demonstrate commercial potential through animal, field, demonstration, or human trials.
For companies, projects intended to demonstrate the commercial feasibility of products and technologies.
For academic research institutes, projects intended to move a product or technology from intellectual property disclosure to near term spin-out and/or licensing opportunities.
Who can I contact for more information about the Proof-of-Concept Program?
You can contact Natural Products Canada (NPC) by email at programs@naturalproductscanada.com.
Where is the Proof-of-Concept Program available?
The Proof-of-Concept Program program is available across Canada.
Is the Proof-of-Concept Program a grant, loan, or tax credit?
Proof-of-Concept Program is a Grant and Funding