Proof-of-Concept Program

• 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).

• 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.

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

• 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.