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
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.
Documents and links
Contacts
Frequently Asked Questions about the Proof-of-Concept Program Program
Here are answers to the most common questions about the Proof-of-Concept Program. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
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