Open
Proof-of-Concept Program
Funding for proof-of-concept natural product projects
Last Update: March 4, 2026
Funding available
$ 100,000 - $ 350,000
Timeline
- Open Date : July 8, 2020
Location
Canada
Overview
Up to $350,000 in non-dilutive funding is available to help demonstrate the commercial feasibility of innovative natural products or technologies. The program supports proof-of-concept projects, including trials and demonstration activities, for Canadian SMEs, start-ups, and academic research institutes.
/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 $
- Minimum amount : 100,000 $
- Up to 40% of project cost
Timeline
- Open Date : July 8, 2020
Eligible candidates
Eligible Industries
- Agriculture, forestry, fishing and hunting
- Manufacturing
- Administrative and support, waste management and remediation services
- Health care and social assistance
Location
- Canada
Legal structures
- For-profit business
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
- 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.
Eligibility
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
- Employee salaries and direct labour costs.
- Direct material costs.
- Subcontractors and consultants.
- Equipment costs, up to 10% of project costs.
- Other direct and indirect project costs, such as participant recruitment or software licences.
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
- Canadian incorporated companies and academic research institutes.
Processing and Agreement
- Applications are reviewed first by the NPC team, which may provide feedback and allow revisions.
- Eligible applications are then sent to the Commercialization Sub-Committee for final review and funding decision.
- Applicants are informed of progress throughout the process and receive the final decision from NPC.
- Unsuccessful applicants receive feedback and may submit a written appeal within 15 days.
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.
Contacts
Frequently Asked Questions about the Proof-of-Concept Program Program
What is the Proof-of-Concept Program?
Up to $350,000 in non-dilutive funding is available to help demonstrate the commercial feasibility of innovative natural products or technologies. The program supports proof-of-concept projects, including trials and demonstration activities, for Canadian SMEs, start-ups, and academic research institutes.
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 or start-up company
Novel natural product or technology at TRL 4-9
Potential for $10M–$15M annual revenue within a reasonable period
What expenses are eligible under Proof-of-Concept Program?
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.
Who can I contact for more information about the Proof-of-Concept Program?
You can contact Natural Products Canada (NPC) by email at npc.ric@techcentre.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