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Non-dilutive funding is capital your business can access without giving up shares or ownership. Examples include grants, tax credits (e.g. SR&ED), research partnerships, wage subsidies, repayable contributions and loans, competitions, awards, and prizes. Each non-dilutive funding path comes with its own requirements and spending conditions.
Each program publishes specific eligibility requirements for applicants and projects it can fund. Criteria can include where you operate, incorporation status and location, company size, industry sector, development stage, and financial capacity. Some programs support startups; others require revenue or operating history. Meeting the minimum criteria is a requirement, but does not guarantee funding.
Grants do not support ongoing company operations. They fund defined projects, usually involving R&D, prototype testing, hiring, employee training, production improvements, manufacturing, launching a product, or entering new markets. Each program will have specific priorities and support defined activities and costs. The first step should be identifying a project your company needs to do, then look for funding that fits its scope and timing.
Grants are generally non-repayable when you meet the signed agreement terms. However, they still require significant application effort, project execution, and often a percentage of the budget as matching funds from the company. Some non-dilutive funding can also include repayable contributions and loans.
Start looking for funding while planning your project and before committing to major expenses. It can take months from application to approval and many programs will only cover activities and costs that begin after the agreement is signed. Funding may be paid upfront, at milestones, or on a reimbursement basis, which means that companies will typically need to plan for cash flow to be able to cover project costs upfront before they get reimbursed. Claims usually follow pre-specified schedules, and may involve submission of invoices, proof of payment, and progress updates.
Define the project you need funding for, then search government and funding agency websites or grant databases for relevant programs. Check each program’s eligibility requirements and application process. You will typically need a project plan, budget, timeline, and supporting business and financial documents. Some programs have several application stages, sometimes starting with an expression of interest or a conversation with an advisor before you are invited to submit a full application. You can also engage consultants like Thin Air Labs’ Funding Catalyst team to help.
Focus on showing what your project will achieve, why it is a great fit to the program priorities, and that your team can deliver it. Set out a clear objective, include a realistic plan and budget, and evidence supporting your approach. Clearly explain the benefits your project will create, its potential outcomes and impact, and its merits and differentiators. Answer the application questions directly and include all required documents.
The greater the value of the funding that you are applying to, the more competitive and complex the application process will be. Wage subsidies are typically less competitive than multi-million dollar demonstration projects. Likelihood of success is determined by various factors including financial position of the venture, completeness of application, and can be sector and geographically dependent. Note: a well executed application does not guarantee funding.
