SDTC - Start-up Funding
Last Update: May 6, 2025
Canada
Funding for high-growth Canadian companies advancing sustainable technologies
SDTC - Start-up Funding at a glance
Eligible Funding
- Max. $4,000,000
- Up to 33% of project cost
Timeline
- Archived
Financing Type
Grant and Funding
Eligible Industries
- All industries
Grant Providers
- Government of Canada
- Sustainable Development Technology Canada (SDTC)
Status
Archived
Overview of the SDTC - Start-up Funding program
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.
Financing terms and conditions
This grant provides specific financing modalities to facilitate the commercialization of sustainable technologies while balancing private and public investment interests.
- SDTC typically covers 33% of eligible project costs, with an average contribution of $2 million to $4 million per project.
- Projects must secure a minimum of 25% of eligible costs from private-sector contributions, which can include in-kind contributions from consortium partners.
- A maximum of 75% of project costs can be funded by government sources, including SDTC and other government grants.
- 50% or more of the project's eligible costs must be incurred within Canada.
- Funding is disbursed based on achieving specific milestones, with a standard 10% holdback released upon project completion and acceptance of final reports.
- SDTC does not take equity or ownership of Intellectual Property developed during the project.
- Financial and progress reporting is required at each milestone to ensure continued funding.
- There is no allowance for contingency fees associated with the successful obtainment of this grant.
Eligible projects & activities
SDTC Scale Up Funding supports promising sustainable technology projects that aim to further develop and commercialize innovations with substantial environmental benefits. The projects should demonstrate scalable solutions for reducing emissions and improving resource efficiency.
- Development and demonstration of technologies aiming for substantial GHG emissions reduction.
- Projects focused on minimizing water consumption and waste production, including air and soil contamination reduction.
- Sustainable technology initiatives that involve testing and validation of economic viability pre-commercialization.
- Projects that scale proven small-scale technologies to reach broader markets.
- Collaboration with commercialization partners to validate the market need for innovations.
- Projects that include risk mitigation strategies for existing technologies.
Examples of admissible projects:
$ 600,000
Developing an advanced water purification system to reduce contamination
$ 1,800,000
Scaling up biofuel technology to reduce GHG emissions
$ 1,000,000
Develop an eco-friendly packaging alternative to reduce plastic pollution
$ 400,000
Demonstration of solar-powered dehydrators for food waste reduction
$ 800,000
Developing a smart irrigation system to minimize water consumption
$ 1,200,000
Testing drone technology for precision agriculture to optimize crop yields
Eligibility criteria of the SDTC - Start-up Funding program
Eligibility for SDTC funding is determined by specific criteria related to the company's ownership, the innovation's impact, and project partnership.
- The company must be Canadian-owned.
- The project must further the innovation along the commercialization pathway.
- The innovation must deliver quantifiable, significant, and scalable environmental benefits.
- The innovation must have a strong end-user value proposition.
- A commercialization partner that can validate the market need for the innovation must be identified.
Who is eligible?
The SDTC funding program is designed to support Canadian-owned small to medium sized enterprises that demonstrate innovative and sustainable technologies with significant environmental impacts. Eligible candidates are required to meet specific criteria reflecting their innovation readiness and environmental benefits.
- Canadian-owned companies.
- Projects advancing innovation toward commercialization.
- Innovations with quantifiable, significant, scalable environmental benefits.
- Strong end-user value proposition for the innovation.
- Identification of a commercialization partner for market need validation.
Who is not eligible
This grant excludes certain companies based on their nationality and project nature. The restrictions ensure that funds prioritize innovative Canadian-based sustainable technologies.
- Non-Canadian companies.
- Companies seeking funding for technologies that provide economic benefits without significant environmental benefits.
- Projects focused on research rather than development or commercialization.
- Projects aimed at the deployment of commercialized technologies, like solar or wind farm development.
- Proposals for purchasing existing foreign technology for Canadian use.
- Requests for incremental improvements to existing technologies.
- Projects designed to address emissions at a singular site only.
- Majority-owned Canadian subsidiaries of foreign multinational enterprises.
Eligible expenses
This grant is aimed at assisting start-up and scale-up companies in advancing sustainable technologies towards commercialization. It funds projects that develop or demonstrate technologies that provide significant environmental benefits.
- Development and demonstration of technologies that reduce greenhouse gas emissions.
- Projects aiming to minimize water consumption or mitigate water, soil, or air contamination.
- Further development of technologies beyond the proof-of-concept stage, mitigating existing technology risks.
- Validation of economic viability for pre-commercial sustainable technologies.
Eligible geographic areas
This grant is available to companies that are based in Canada as it is a requirement to be Canadian-owned to apply. This ensures that the benefits of the funded projects are aligned with national priorities and support the country's sustainable development goals.
- Canadian-owned companies
Eligibility criteria of the SDTC - Start-up Funding program
The evaluation and selection of projects for SDTC funding involve several specific criteria to ensure project alignment with sustainability and commercialization objectives.
- Quantifiable, significant, and scalable environmental benefits.
- Strong end-user value proposition.
- Identification of a commercialization partner to validate market needs.
- Further development along the pathway to commercialization for the innovation.
- Viable plan for technology development and risk mitigation.
- Potential for reducing GHG emissions, minimizing water consumption, or reducing contamination.
- Validation of economic viability of the technology.
- Active participation and contribution from consortium partners, including in-kind contributions.
How to apply to the SDTC - Start-up Funding program
1
Understand Eligibility Criteria
Review the SDTC’s eligibility requirements to confirm your project's eligibility.
2
Initial Application Phase
- Check SDTC's eligibility, eligibility costs, and evaluation criteria to ensure alignment.
- Download the application template and view a sample application.
- Access the SDTC application Portal to submit your application.
3
Preliminary Review
- An internal SDTC team will review the application to determine eligibility.
- If eligible, prepare to make a presentation via video conference.
4
Due Diligence Phase
- If the project meets criteria, submit a detailed proposal via the online portal.
- SDTC staff will conduct a due diligence visit to your project site.
5
Approval Process
- The SDTC Project Review Committee will review the project.
- Recommended projects are presented to the SDTC Board of Directors for approval.
6
Contribution Agreement
If approved, work with SDTC to prepare a Contribution Agreement (contract).
Additional information
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.
Contact Government of Canada
applications@sdtc.ca
Apply to this program
Grant and FundingClosed
Canada
Supports Canadian SMEs’ export activities in new international markets
Grant and FundingOpen
Canada
Financial support for technology innovations
Tax CreditsOpen
Canada
Scientific research and experimental development tax credit
Tax CreditsOpen
Canada
Offer up to 30% refundable credit for capital investments in new clean technologies in Canada
Tax CreditsOpen
Canada
Incentivize Canadian companies to invest in clean technology
Partnering and CollaborationGrant and FundingOpen
Canada
Strategic Innovation Fund supports transformative Canadian economic investments
Grant and FundingOpen
Canada
Incentives to purchase or lease medium- heavy-duty ZEVs
Grant and FundingOpen
Canada
Supports Canadian SMEs in accessing advanced AI compute resources
Grant and FundingOpen
Canada
Supports energy-efficient retrofits for Canadian freight fleets
Grant and FundingClosed
Canada
Support for the implementation of energy efficiency and energy management solutions