Proof-of-Concept Program
Canada
Financing for natural product innovations
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJuly 08, 2020
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
- Manufacturing
- Administrative and support, waste management and remediation services
- Health care and social assistance
grant_single|grantors
- Natural Products Canada (NPC)
grant_single|status
grant_card_status|open
grant_single_labels|preview
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.
grant_single_labels|projects
This grant is intended for Canadian entities and does not specify any particular geographical areas within Canada. Eligible applicants must be Canadian incorporated SMEs, start-up companies, or academic research institutes.
- Canadian incorporated SMEs
- Canadian start-up companies
- Canadian academic research institutes
grant_single|admissibleProjectsExample
$80,000
Conduct animal trials for a new veterinary medicine
$100,000
Human trials for a new organic skin care product
$100,000
Human trials for a new biomedical device
$100,000
Develop a biodegradable packaging material and conduct field trials
$100,000
Field trials of a new eco-friendly pest control system
$100,000
Demonstration trials of a new solar energy system
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the company's status and the nature of their product or technology.
- The applicant must be a Canadian incorporated SME or start-up company.
- The company must have a novel natural product or technology that aligns with NPC’s definitions and fits within TRL 4-9 of the Government of Canada’s Technology Readiness Levels.
- The company must have the potential to achieve $10MM to $15MM in annual revenue within a reasonable period for the market or sector.
- The project must have the potential for significant economic, social, health, and/or environmental benefits.
- The project must demonstrate technological advancement and benefits to the natural products ecosystem across Canada.
- The project must show technical feasibility.
- The project must have potential for commercialization in Canada.
- The project must have potential spillover benefits to more than one sector.
- The company should demonstrate potential for improving the representation of women, visible minorities, and Indigenous peoples in the natural products ecosystem.
- The applicant must be a member of Canada’s Natural Product Innovation Cluster.
- There must be a minimum NPC Contribution of $100,000.
grant_eligibility_criteria|who_can_apply
This grant targets Canadian incorporated SMEs, start-up companies, and academic research institutes that have innovative natural products or technologies for commercialization feasibility studies.
grant_eligibility_criteria|eligible_expenses
This grant supports projects that help establish the commercial feasibility of innovative natural products or technologies. The activities should advance development, commercialization, or de-risk subsequent investment and are demonstrated via trials.
- Animal, field, demonstration, or human trials to demonstrate commercial potential.
grant_eligibility_criteria|zone
The grant covers expenses directly related to the proof of concept project's execution and reporting.
- Costs associated with animal, field, demonstration, or human trials to demonstrate commercial potential.
- Direct project costs that are necessary for advancing development, commercialization, or de-risking subsequent investment.
- Reimbursement of eligible project costs upon approval of quarterly reports including invoices and proof of payment.
grant_single_labels|criteria
The evaluation and selection of projects for this grant focus on specific criteria designed to assess the potential success and impact of the project proposals.
- Novelty of the natural product or technology.
- Market opportunity and potential for commercialization.
- Strength and viability of the business model/commercialization strategy.
- Competitive landscape and differentiation from competitors.
- Strength of the management team or research leadership team.
- Need and potential impact of the trial.
- Design and key activities of the trial.
- Qualifications of the individuals and/or centres conducting the trials.
- Risk mitigation strategies.
grant_single_labels|register
- Step 1: Initial Contact
- Reach out to NPC by emailing [email protected] to express interest in the Proof of Concept Program.
- Step 2: 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.
- Step 3: 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.
- Step 4: Application Submission
- Submit the application as requested by NPC, ensuring all documents and details are complete and accurate.
- Step 5: Feedback and Revision
- Receive initial feedback from the NPC team and revise the application as needed.
- Step 6: 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.
grant_single_labels|otherInfo
Additional important details for this grant:
- NPC's funding is non-dilutive and non-repayable, helping applicants retain equity stakes.
- Two-thirds of project funding must come from non-governmental sources, as the maximum government funding is 75% for SMEs and 100% for academic institutes.
- Applicants should be part of the Natural Product Innovation Cluster, ensuring collaboration within Canada’s ecosystem.
- Quarterly reports, including financial claims and proof of payment, are essential for reimbursement.
- A non-refundable project administration fee of 5% of total project costs applies.
- An ongoing commitment to submit an annual report for five years post-project is required.
- The appeal process allows applicants to dispute NPC's decision within 15 days of receiving it.
grant_single_labels|contact
npc.ric@techcentre.com
Apply to this program
Unlock Funding for Innovative Natural Products and Technologies
The Proof of Concept Program offers Canadian SMEs, start-ups, and academic research institutes the financial support to demonstrate the commercial feasibility of groundbreaking natural products or technologies. With a focus on biologically-based innovations, this grant encourages market-ready solutions that benefit people, animals, and the environment.
Exploring the Proof of Concept Program for Natural Innovations
The Proof of Concept Program, spearheaded by Canada's Natural Product Cluster (NPC), is a strategic initiative designed to accelerate the commercialization of novel natural products and technologies. This grant is aimed at bolstering the development phase of biologically-based innovations, ensuring these technologies, which must adhere to Technology Readiness Levels (TRL) 4-9, can successfully transition from proof of concept to market-ready solutions. One of the unique aspects of this program is its focus on innovations that incorporate or enhance the use of naturally-occurring molecules, ensuring significant benefits across industries such as agriculture, sustainability, human and animal health, and water management.
The program is structured to provide up to 40% of a project's total cost, capped at $350,000, over a maximum duration of 18 months. This support, however, requires applicants to secure the remaining 60% to demonstrate commitment and capacity for project completion. The grant is particularly targeted at projects that can deliver considerable economic, social, health, or environmental benefits, aligning closely with Canada's focus on sustainable development and environmentally-friendly innovations.
For Canadian SMEs and start-ups, this program represents a golden opportunity to advance their product or technology's market readiness, with the potential to achieve annual revenues between $10 million and $15 million, proving their economic viability within a reasonable duration. Meanwhile, for academic institutions, the grant serves as a powerful lever to transition intellectual property from research disclosure to commercialization, fostering new spin-outs and licensing opportunities.
To qualify for this grant, applicants must present not only the novelty and feasibility of their project but also its potential to create broader ecosystem benefits. The program aims to drive significant advancements within the natural product landscape in Canada, with emphasis on technological innovations that can deliver cross-sectoral advantages and enhance the representation of underrepresented groups, including women, visible minorities, and Indigenous peoples.
Applicants are guided through a comprehensive process, starting with an eligibility assessment conducted by the NPC team. Successful candidates then proceed to submit a formal application, which undergoes a rigorous evaluation based on several criteria, including novelty, market potential, and the strength of the management team. Projects that pass this evaluation are briefly reviewed by a Commercialization Sub-Committee, ensuring that only projects with the utmost potential for impact and feasibility secure funding.
The Proof of Concept Program is a non-dilutive, non-repayable financial aid, emphasizing support through reimbursement of eligible costs after thorough quarterly reporting. This ensures transparency and accountability, as projects must adhere to the NPC contract's conditions, contributing to the long-term strategic growth and innovation within Canada's natural product sectors.
This funding avenue not only positions natural product innovators at the cutting-edge of their respective fields but also underscores Canada's commitment to fostering an ecosystem where sustainable and impactful innovations can thrive. The program’s stringent guidelines and eligibility criteria ensure that only the most promising and transformative projects receive support, driving meaningful economic and environmental progress.
