SDTC - Start-up Funding
Canada
The SDTC funding program catalyzes the advancement and commercialization of innovative sustainable technologies in Canadian-owned companies.
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- grant_single|timelineUnspecified
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Grant and Funding
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- Government of Canada
- Sustainable Development Technology Canada- SDTC (SDTC)
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grant_card_status|open
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The SDTC funds promising sustainable technology development and demonstration projects, specifically targeting start-ups or scale-ups. The program aims to advance innovative technologies that deliver significant environmental benefits, such as reducing GHG emissions or minimizing resource consumption, by supporting their journey towards commercialization. Eligible activities include further development of technology, mitigating existing technology risks, and validating the economic viability of the innovation.
grant_single_labels|projects
There are several projects and activities eligible for this grant. SDTC funds sustainable technology development and demonstration projects, particularly those aimed at reducing GHG emissions, minimizing water consumption, and reducing contamination of water, soil, or air.
- Technology development beyond proof-of-concept but pre-commercial stage.
- Projects that include further development and mitigate existing technology risks.
- Validation of the economic viability of the technology.
grant_single|admissibleProjectsExample
$1,000,000
Toronto
Develop an eco-friendly packaging alternative to reduce plastic pollution.
$800,000
Montreal
Developing a smart irrigation system to minimize water consumption.
$400,000
Ottawa
Demonstration of solar-powered dehydrators for food waste reduction.
$1,800,000
Calgary
Scaling up biofuel technology to reduce GHG emissions.
$600,000
Vancouver
Developing an advanced water purification system to reduce contamination.
$1,200,000
Winnipeg
Testing drone technology for precision agriculture to optimize crop yields.
grant_single_labels|admissibility
To be eligible for this grant, your innovative idea must advance the pathway of commercialization and provide scalable environmental benefits, while ensuring a strong end-user value proposition.
- Your company is Canadian-owned
- You must define a project that may further your innovation along the pathway of commercialization
- Your innovation must deliver quantifiable, significant and scalable environmental benefits
- Your innovation has a strong end-user value proposition
- You have a commercialization partner identified that can validate the market need for your innovation
grant_eligibility_criteria|who_can_apply
Yes, there are eligible types of companies for SDTC funding. The SDTC aims to support Canadian-owned innovative companies that focus on sustainable technologies contributing significant environmental benefits and advancing towards commercialization.
- Canadian-owned small to medium sized companies
- Companies with innovations delivering quantifiable, significant, and scalable environmental benefits
- Companies with a strong end-user value proposition
- Companies with a commercialization partner identified
- Start-ups with proven technology at a small scale
- Scale-ups working with customers to test business model viability or achieve competitive advantage
grant_eligibility_criteria|who_cannot_apply
There are specific types of companies that are not eligible for this grant.
- Non-Canadian companies
- Funding requests from a majority-owned Canadian subsidiary of a foreign multinational enterprise
grant_eligibility_criteria|eligible_expenses
Yes, there are eligible expenses for this grant, which typically cover costs associated with the further development of technology along the pathway to commercialization. These costs must be significant, quantifiable, and incurred within the specified project timeframe.
- Development of technology
- Demonstration and validation of economic viability
- Mitigating existing technology risk
- Some project-specific costs
- At least 50% of eligible project costs incurred within Canada
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is Canada.
- Your company must be Canadian-owned.
- The project must incur at least 50% of its eligible project costs within Canada.
- Funding requests from non-Canadian companies are not considered.
grant_single_labels|criteria
Yes, there are evaluation and selection criteria for this grant. SDTC evaluates projects based on several criteria to ensure they align with their funding objectives and help advance sustainable technologies.
- Eligibility: The company must be Canadian-owned and the project must further the innovation along the pathway of commercialization.
- Environmental Benefits: The innovation must deliver quantifiable, significant, and scalable environmental benefits such as reducing GHG emissions, minimizing water consumption, or reducing contamination.
- Market Validation: The innovation must have a strong end-user value proposition and include a commercialization partner who can validate the market need.
- Technical Feasibility: The project must demonstrate the potential for technological progress beyond the proof-of-concept stage.
- Economic Viability: The project must include validation of the economic viability of the technology.
- Consortium Partner Involvement: The project should include consortium partners that contribute to the project's success without profiting during the project timeframe.
grant_single_labels|register
- Step 1: Application
- Check SDTC’s eligibility, eligibility costs, and evaluation criteria to ensure your project aligns.
- Download the application template.
- Access the application Portal to submit your application.
- Internal SDTC experts will review your application to determine eligibility.
- If the initial review is positive, you will be invited to make a presentation via video conference.
- Step 2: Due Diligence
- If your project aligns with SDTC criteria, you will be invited to submit a detailed proposal via the online portal.
- SDTC staff will visit your project site for a due diligence visit.
- The SDTC Project Review Committee will review your project.
- Recommended projects are presented to the SDTC Board of Directors for approval.
- Step 3: Funding Approved
- If your project is approved, SDTC will work with you to prepare a Contribution Agreement (contract) to advance the project.
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The SDTC grant process includes several phases and specific requirements for partnership and contribution.
- Applications are accepted on a rolling basis throughout the year.
- The typical SDTC funding covers 33% of eligible project costs, averaging $2 to $4 million disbursed over up to five years.
- Projects must have at least one consortium partner and a private-sector contribution of at least 25% of eligible project costs.
- SDTC allows for a maximum of 75% government funding of eligible project costs.
- All funded projects are required to complete several reporting stages and acknowledge SDTC funding in public statements.
- Post-project completion, recipients need to complete an annual questionnaire for five years.
- SDTC does not fund projects if any contingency fees for soliciting or obtaining the funding are involved.
grant_single_labels|contact
applications@sdtc.ca
-343
Apply to this program
SDTC Funding for Sustainable Technologies
Sustainable Development Technology Canada (SDTC) provides non-repayable contributions to Canadian-owned companies developing innovative technologies with significant and scalable environmental benefits. The funding supports projects from the development stage to the doorstep of commercialization, helping companies bring sustainable solutions to market.
A Comprehensive Guide to SDTC Funding for Sustainable Technologies
Sustainable Development Technology Canada (SDTC) plays a pivotal role in fostering the advancement and commercialization of innovative, sustainable technologies across Canada. By supporting projects that have the potential to deliver significant environmental benefits, SDTC aims to drive the growth of a greener economy and position Canada as a leader in sustainable innovation. This comprehensive guide will detail the various aspects of SDTC funding, including eligibility requirements, application processes, the types of projects funded, and the benefits of obtaining SDTC support.
Eligibility Requirements
To qualify for SDTC funding, companies must meet several key criteria. Firstly, the company must be Canadian-owned, ensuring that the benefits of the funding are retained within the national economy. Furthermore, the project in question must be poised to advance the innovation along the commercialization pathway. This underscores the importance of the technology being beyond the proof-of-concept stage but not yet fully commercialized. A significant aspect of SDTC's funding considerations is the environmental impact of the proposed innovation. The technology must deliver quantifiable, substantial, and scalable environmental benefits. Whether it aims to reduce greenhouse gas emissions, minimize water consumption, or lessen air, soil, or water contamination, the project must contribute positively to the environment. Additionally, the innovation must present a robust end-user value proposition and demonstrate a clear market need, validated by a commercialization partner.
Funding for Start-ups and Scale-ups
SDTC funding is designed to cater to companies at different stages of growth. For start-ups, the focus is on technologies that have been proven on a small scale, offering support to further develop and validate these innovations. Scale-up funding targets more advanced, high-growth companies looking to test the viability of their business models, strengthen their competitive edge, or expand their customer base.
Start-ups
Start-up funding is geared towards companies that have already demonstrated the feasibility of their technology on a small scale. These companies receive support to further develop and validate their innovations, assisting them in reaching the next stage of growth and market readiness.
Scale-ups
For scale-up companies, the funding focuses on advanced projects with higher growth potential. These companies work closely with customers to test the viability and scalability of their technologies. This phase is crucial for companies aiming to strengthen their competitive advantage or unlock a larger customer base.
Types of Projects Funded
SDTC funds a broad scope of projects centered on sustainable technology development and demonstration. The technology must be beyond the proof-of-concept stage but pre-commercial, demonstrating potential for significant environmental benefits. Projects typically involve further development, technology risk mitigation, and validation of economic viability. Eligible projects might focus on reducing greenhouse gas emissions, conserving water resources, or reducing contamination in air, soil, or water. The primary objective is to support technologies that offer substantial and measurable environmental improvements.
Examples of Non-eligible Requests
Certain types of funding requests are not considered by SDTC. For instance, the organization does not fund projects submitted by non-Canadian companies or those delivering only economic benefits without substantial environmental impact. Research projects, commercial deployment of already commercialized technologies (like solar or wind farms), and incremental modifications to existing technologies are also excluded. Additionally, funding requests from majority-owned Canadian subsidiaries of foreign multinational enterprises are not considered.
Application Process
The application process for SDTC funding is designed to be client-centric and straightforward, acknowledging the busy schedules of entrepreneurs. It involves a multi-step process with checkpoints and coaching to ensure the application's viability at every stage.
Phase One: Application
Prospective applicants must first review SDTC’s eligibility, cost criteria, and evaluation criteria to determine if their project aligns with SDTC’s objectives. Once confirmed, applicants can download the application template and submit it via the SDTC application portal. An initial review by SDTC experts will determine if the project meets the eligibility criteria, followed by a video conference presentation if applicable.
Phase Two: Due Diligence
If the initial application is promising, applicants will be invited to submit a detailed proposal via the online portal. SDTC staff will conduct a due diligence visit to the project site, and the Project Review Committee will evaluate the project. Recommended projects will then be presented to the SDTC Board of Directors for approval.
Phase Three: Funding Approved
Once approved, SDTC will collaborate with the applicant to prepare a Contribution Agreement (contract) to advance the project. The disbursement of funds follows a milestone-based approach, ensuring the project’s progress aligns with the agreed deliverables and success metrics.
Disbursement and Compliance
SDTC's contribution agreements include clearly defined milestones, representing specific time periods with identified deliverables and success metrics. Upon executing the Contribution Agreement, SDTC advances its portion of the first milestone budget, less a standard 10% holdback. Subsequent disbursements occur upon successful completion and reporting of each milestone.
Reporting Requirements
During the project's duration, the project team must report progress against predefined technical deliverables and metrics, along with detailed project expenses. Additional reporting includes an Environmental Benefits Baseline Report at the end of the first milestone, followed by a Final Report, Marketing and Commercialization Report, and Environmental Benefits Final Report upon project completion.
Post-Project Obligations
For five years following the project's completion, SDTC requires recipients to complete an annual questionnaire. This allows SDTC to track the technology's market progress, including sales, revenues, and job creation. Moreover, recipients must acknowledge SDTC funding in all related press releases and public statements.
Additional Funding Considerations
SDTC funds typically cover an average of 33% of eligible project costs, with average contributions ranging from $2 million to $4 million, disbursed over the project's life of up to five years. However, projects must secure a private-sector contribution of at least 25% of eligible project costs, and overall government funding must not exceed 75% of eligible project costs. Furthermore, at least 50% of the project's costs must be incurred within Canada. Applicants are encouraged to seek additional funding from other government programs, provided the total government funding does not exceed the 75% threshold mentioned earlier. This flexibility enables businesses to maximize their resources and pursue comprehensive development strategies.
Consultant Support
While consultants can support the application process, SDTC policy prohibits applications involving contingency fees based on the degree of success in securing funding. This ensures a fair and transparent process for all applicants and maintains the integrity of the funding program.
Conclusion
SDTC funding offers a valuable opportunity for Canadian-owned companies to advance their sustainable technologies and bring innovative solutions to market. By meeting the defined eligibility requirements and navigating the comprehensive application process, businesses can secure the financial support needed to develop and commercialize their environmentally beneficial technologies. This funding not only aids individual companies but also contributes to Canada's broader goal of fostering a sustainable and greener economy.