The Canadian Government provides over $7B in innovation funding each year and is considered one of the most generous countries for funding research, innovation, and experimentation. Learn more about a few of Canada's innovation funding programs: -Scientific Research & Experimental Development Tax Credit (SR&ED), slides presented by James Suk, Boast Capital -Small Business Grants, slides presented by Stephanie Sang, Granted Consulting -Sustainable Development Technology Canada (SDTC) slides presented by Paul Austin, Regional Director of Partnerships

1. INNOVATION FUNDING
FOR GROWTH-ORIENTED
COMPANIES
October 24, 2014
In Partnership with Granted, SDTC and Spring.is

2. Documentation for
SR&ED Claims 101

3. WHO WE ARE
 Engineers and financial professionals
 Technology-first approach to SR&ED
 Professional Services Firm of the Year

4. WHO CAN CLAIM?
 CCPC = Canadian Controlled Private
Corporations
 Non-CCPC = Foreign or Publically
Owned Corporations
 Partnerships

5. THE DO’S AND DON’TS
Do’s for Companies:
 Pay yourself and staff
 Start time tracking and proper
documentation now
 Incorporate your company and
ensure clear IP ownership

6. DOCUMENTATION - TECH
 Documented at the
time the work was
completed
 Technical obstacles
or challenges
 Dated

7. TIME TRACKING
Key Points for Tracking
 Granularity of time
 Normalizing your hours
 Self-limiting descriptions /
estimates
 Supporting activity vs directly
engaged

8. CRA REVIEWS
CRA Review ≠ Tax Audit
Multiple types of CRA Reviews:
 First Time Claimant Advisory Service (FTCAS)
 Desktop
 Financial
 Technical & Financial

9. HOW WE WORK
 Contingent
 Scope your claim upfront and invoice when your claim is
successful
 Efficient
 Only require interviews & documentation
 Proactive
 Ongoing engagement and future recommendations

10. WHY WORK WITH US
 Highly reputable
 Technology-focused
 Efficient
 Well-connected

11. JAMES SUK
PARTNER
604 779 7770| jsuk@boastcapital.com
BoastCapital.com | @BoastCapital | @jimmyzook
For more info on R&D tax credits and other innovation funding programs,
subscribe to our newsletter.

12. Granted Consulting
Empowering Businesses with Grants

13. Who are we?
 Background
 Canadian Grants
 Our strengths:
 Operational
 Project
 Hiring/Training
Not:
• Tech Grants
• University Grants
• Private Funding

14. Frequent Misconceptions
Are you are one of the following entrepreneurs:
 As a female entrepreneur, minority, and/or youth
there are tons of grant funding available, I just
need to apply.
 I am marketing a product to my local market,
there must be money to do that.
 I am starting a new business and contributing
back to the economy, where are the grant funds
to support that?
 Is there a fund that will pay an entrepreneur who
is working 12 hour days while trying to manage a
family and kids?

15. When to Apply
 Research & Development
 Innovative (Product/Process)
 Project Related (i.e. adding new
functions, piloting)
 Employment (Hiring Full Time)
 Improving Skills (Training)
 Market Expansion/Partnerships

16. Successful Applications
 Establish Goals
 Research, Research, Research
 Understand requirements
 Eligibility
 Commitment
 Reporting
What are they looking for?
 Deadlines and Planning Ahead

17. Funding Resources
 R&D: ResearchNet
 General:
 Canada Business Network,
 Civic Info BC,
 Community Futures
 Arts: Canada Council & BC Arts Council
Media: Canada Media Fund, Network Funds
(i.e. Shaw, Rogers, Bell)
 Non-Profit: Charity Village
 Other: Contests

18. Building your Grant Strategy
 Business Plan
 Goals for next 12 to 18 months
 Research Opportunities
 Not always for this year only
 Discussions with stakeholders
 Prepare for Applications
 Follow Up
 Get feedback
 Repeat Process for change in Business Goals

19. Questions?

20. Stephanie Sang
ssang@granted.ca
604 782 8812

21. Vancouver October 24, 2014

22. The Cleantech Business Opportunity
Clean technologies: Innovative products or services that simultaneously
reduce financial and environmental costs while driving better performance.
Improved operational performance,
productivity or efficiency.
Economy
Enviro. Society
Reduced energy
consumption, waste
or pollution.
Improved quality
of air, water
and land.
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23. SDTC Funds Canadian Cleantech
SD Tech Fund™
• Launched on April 4, 2002
• Aimed at development and demonstration
of emerging clean technologies
SD Natural Gas Fund™
• Launched on February 25, 2014
• First fund with direct investments from the private sector via the Canadian
Gas Association
• Aimed at development and demonstration of
emerging downstream natural gas technologies
NextGen Biofuels Fund™
• Launched on September 12, 2007
• Aimed at establishment of first-of-kind large demonstration-scale facilities
for the production of next-generation renewable fuels and co-products
SDTC’s funds are complementary, operate close to the market,
and address gaps in the innovation chain.
23

24. Commercializing Innovation
Applied
Research
Pension Funds
SDTC Funds
SDTC’s funds are positioned to address funding gaps in
commercializing technology.
Fundamental
Research
Technology Development and
Demonstration
(Pilot to Full Scale)
Product
Commercialization
& Market
Development
Market Entry
& Market
Volume
Pre-IPO
Gap
Funding Intensity
Pre-
Commercial
Gap
Angel
Governments
Project Finance
Early
VC
Banks
High CAPEX
Gap
Venture Capital/
Private Equity
Pre-Commercial
Gap
(Low
CAPEX)
Public Markets
Industry Corporate VC Industry
Investors
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25. Priority Areas
• Responsible resource development
• Next generation transportation
• Resource and energy efficiency
• Clean energy
• Agriculture
• Northern and remote communities
Based in part on report for Natural Resources Canada:
Opportunities for Canadian Energy Technologies in
Global Markets - McKinsey & Co.
SDTC supports technologies that address the challenges of clean
air, soil, water and climate change, including technology
solutions focused on these current technology priority areas.
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26. Key Considerations
Are you at the right stage?
Technology:
• Beyond proof-of-concept
• Pre-commercial
Consortium:
• Key consortium partner relationships initiated and secured
“in principle” to proceed at the time of SOI submission
Commercialization:
• At the end of the SDTC project, the technology should be
in a position to be commercialized
26

27. Technology Readiness Level
Level Technology Readiness Level (TRL)
1 Conceptual articulation
2 Technology and Applications described
3 Laboratory studies and analysis
4 Limited capability prototype validation in
laboratory (pre-alpha version)
5 Full capability prototype validation in
laboratory (alpha version)
6 Prototype validation in relevant
environment (pre-beta version)
7 Actual system validation in a relevant
environment (beta version)
8 Initial production and rollout
9 Full production mode
Start of project
Project completion
SDTC funding can help with technology de-risking in the late
development and demonstration stages, speeding adoption and
commercialization.
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28. Funding Allocation Process
Two phases for applicants and four decision gates
• Phase I – Statement of Interest (SOI) – not too onerous, it
is informative and sufficient to assess
• Phase II – Proposals by Invitation – equivalent to a
business plan
• Gate I – SDTC review
• Gate II – Technical and Business Expert Reviews
• Gate III – Investment Committee and Project Review
Committee
• Gate IV – Board Approval
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29. 1.1. Lead Organization Profile
Who can Apply?
•A for-profit corporation (90% are SMEs)
•A not-for-profit corporation
•A partnership
•A limited partnership or
•A business trust
That has entered into a contract or collaborative arrangement
relating to the execution of the applicant’s project.
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30. Summary of Project
Evaluation Criteria
Summary of Key Elements of a Successful SD Tech Fund™ SOI:
• Level of Innovation
• Environmental Benefits
• Industry leverage and partnerships (consortium)
• Potential for broad and rapid market diffusion
• Strategies on how to handle generated intellectual property
• Inherent technical and / or markets risks
• Strategies to mitigate technical and / or market risks
• Existing SDTC investments (portfolio saturation)
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31. 31
SDTC's Investments in BC by
Economic Sector
As of December 2013
SDTC Commitment to BC cleantech Firms: $185M

32. Questions?
Big thanks to Granted, SDTC and Spring.is!