Innovation Funding Lunch & Learn May 13, 2014

Innovation Funding
Lunch & Learn
May 13, 2014
BoastCapital.com | @BoastCapital | BoastCapital.com/blog

Good Cents for Geomatics
2

Calgary,
May
13th,
2014

Innova&on
Funding
Lunch
and
Learn

Richard
C.
Gorecki,
M.Sc.

Director
of
Por>olio
Development

Who
is
TECTERRA?

! We
help
Canadian
GeomaDcs
technology
SMEs
achieve

commercial
success
faster
than
they
could
on
their
own.

! We
fund
product
development
&
commercializaDon,
create

new
jobs,
build
experDse
in
companies,
and
provide
access
to

state-‐of-‐the-‐art
technology.

! We
help
applied
research
groups
bring
their
innovaDve

technology
to
market.

We
are
the
only
choice
for
geoma/cs
SMEs
that
require
a

comprehensive
range
of
services,
eﬃciently
delivered,

without
giving
up
control,
IP
or
equity.

3

What
is
Geoma&cs?

4

Good
Cents
for
GeomaDcs

Cartography

Photogrammetry

Remote
Sensing

Geodesy

NavigaDon

PosiDoning

Surveying
Mapping

Our
Approach

6

Commercializati
on
Projects
Highly
Qualified
Personnel
(HQP)
Developmen
t
Networkin
g
Facilitation

TECTERRA’s
Programs

An
eﬀecDve
catalyst
for
the
commercializaDon
of
geomaDcs

technology
for
integrated
resource
management
and
other

geospaDal
applicaDons
across
Canada

7

None
of
TECTERRA’s
programs
requires
IP
or
equity
sharing

Industry
Investment
Program
(IND)

8

Category
Detail

Funding
for
Technology
development
and
commercializaDon
projects

Funding
Range
$150,000
to
$500,000

Funding
Over
$500k
Will
be
considered
on
case-‐by-‐case
basis

Matching

Matching
funds
on
a
1:1
basis

Project
DuraDon
6
months
to
1
year

IP/Equity
Stake
None

Payback

Payback
only
occurs
if
the
project
generates
revenue

100%
of
TECTERRA
investment
from
a
porDon
of
revenue

at
0%
interest.

1405-‐IND-‐CFP

! Open
to
all
geoma&cs
applicaDon
in
all
industries

! Focus
on
integrated
resource
management
(IRM)
projects

v  Agriculture,
forestry,
petroleum,
renewables,
etc

9

*Dates
are
approximate

Event

Date

Pre-‐EOI
InformaDon
Session

May
8,
2014

EOI
due

May
29,
2014

Response
to
EOI*
June
13,
2014

Full
Proposal
Due

August
28,
2014

Response
to
Full
Proposal*
September
26,
2014

Signed
contract
and
due
diligence*

October
17,
2014

First
payment
from
TECTERRA*
October
17,
2014

GEO-‐Placement
Program
(GEO)

10

Category
Detail

Funding
for

50%
of
one
salary
posiDon
for
a
net-‐new
Highly
Qualiﬁed

Person
(HQP)

Funding
Range
50%
of
salary
up
to
$50,000

Ex:
$80,000/a
salary
=>
$40,000
contribuDon
from
TECTERRA

Matching

Matching
funds
on
a
1:1
basis

Funding
DuraDon

Up
to
1
year,
or
if
less,
then
as
long
as
the
individual
remains

with
the
company

IP/Equity
Stake
None

Payback
None
–
This

is
a
non-‐repayable
grant

1405-‐GEO-‐CFP

! Open
to
all
geoma&cs
applicaDon
in
all
industries

! Focus
on
HQP’s
that
will
assist
in
building
the
company’s

capacity
for
sales
and
markeDng
operaDons.

11

*Dates
are
approximate

Event

Date

Pre-‐EOI
InformaDon
Session

May
8,
2014

Applica&on
due

May
15,
2014

Response*
June
19,
2014

CSS:
Commercializa&on
Support
Services

12

CSS

Business
Support

-‐  Marke&ng

-‐  Finance

-‐  Opera&ons

-‐  HR

$50,000
Grant

(25%
repayable)

Approved
Service

Providers

Ongoing!

Geoma&cs

Start-‐Up
&
Small
Companies

TAP:
Trade-‐Show
Aaendance
Program

13

$15,000
Grant

(non-‐repayable)

Up
to
two
delegate
registra&ons
/
event

Booth
registra&on

Three
hotel-‐room
nights
/
event

Up
to
TWO
events
/
year

Tradeshows
&
Conferences

TAP

Geoma&cs

Start-‐Up
&
Small
Companies

Ongoing!

Geoma&cs
Lab

! State-‐of-‐the-‐art
equipment
for

technology
development

! Free-‐of-‐charge
access
for
TECTERRA

por>olio
companies
&
projects

! Highly-‐subsidized
rates
for
non-‐
por>olio
companies
&
projects

! Book
your
access
Dme
today!

14

Ongoing!

TECTERRA’s
Funding
Programs
@
a
Glance

15

Program
Target
Support
Payback
IP
or
Equity

IND
SME
CommercializaDon
Projects
$150
-‐
$500k

CSS
CommercializaDon
Support
Services
Up
to
$50k

25%

TAP
Tradeshow
Anendance
Support
Up
to
$15k

Geoma&cs
Lab
State-‐of-‐the-‐art
Equipment
Access
&
UDlizaDon

Training
Industry
&
Graduate
Students
HQP
Development

Good
Cents
for
GeomaDcs

16

TECTERRA
Industry
Pordolio

17

TECTERRA
Industry
Pordolio

and
before
I
forget…

TECTERRA
GeomaDcs
Showcase:
18th
June
2014
in
Calgary

18

Good
Cents
for
GeomaDcs

19

www.tecterra.com

admin@tecterra.com

@TECTERRA

TECTERRA

invesDng
in
innova&on

SR&EDucation

What is SR&ED?

Federal and Provincial tax incentive program
that allows companies to recover cost
associated with R&D and Experimental
Development

What is SR&ED?
Scientific
Research
&
Experimental
Development


•  Technology Advancement Sought
•  Technological Uncertainties, Obstacles, or
Challenges
•  Technical Content (Iterations)
Identifying SR&ED Eligibility

Claim Examples

What Can be Claimed?
•  Salaries *
•  Sub-Contractors * (80% of expenditure)
•  Overhead (Traditional vs. Proxy)
•  Materials (Transformed or Consumed)
•  Capital Expenditures (Ends after 2013)
* Work must be carried out in Canada (10% allowed outside of Canada/preformed by
Canadian Tax payers)

Recent Changes
•  Eliminate capital expenditures
§  For expenditures incurred after Jan 1, 2014
•  Lower the overhead proxy amount
§  Currently 65% à 55% by Jan 1, 2014
•  Lower % of subcontractor payments
•  Lower federal SR&ED rate for large corps.

Canadian Controlled Private Corporations
(CCPC)
Refundable Investment Tax Credits (ITC’s)
•  Salaries – ~64%
•  Sub-Contractors - ~32%
•  Materials - ~40%
Return Rates

Non-Canadian Controlled Private
Corporations or Publically Traded
Non-refundable Investment Tax Credits
(ITC’s)
•  Salaries – ~36%
•  Sub-Contractors – ~18%
•  Materials – ~28%

Return Rates

Financial Tracking

Technical Tracking
Documentation should be:
•  Contemporaneous
•  Dated
•  Highlight technological obstacles/challenges
Examples:
Timesheets, Engineering Books, Versioning
Control on Iterations, Technical Challenges

Time Frame for Claiming
•  Deadline: 18 months past the fiscal year
end
•  Current Filing: 6 months to file taxes after
fiscal year end
•  Amended Filing: 7 to 18 months past fiscal
year end

Claim Turnaround Time
From receipt of a complete claim:
•  Current Filing (CCPC) – 120 days
•  Non-Refundable (non-CCPC) – 365 days
•  Amended Filing (CCPC) - 240 calendar
days

CRA Claim Review Process
•  CRA SR&ED review division
– Reviews ONLY SR&ED expenditures and
technical content (not the company's FS, etc.)
•  3 types of CRA reviews
– Desktop
– Financial only
– Technical & Financial

CRA
Review
Likelihood

•  Expenditure
makeup

–  Large
subcontractor
expenditures

–  Large
materials/capital/lease
expenditures

–  High
percentage
of
speciﬁed
employees
being
claimed

•  Claim
size

–  RelaDve
size
($100K
in
ITC
is
likely
to
be
reviewed)

–  Expenditure
size
as
%
of
overall
company
expenditures

•  Date
of
last
review

–  Reviews
are
likely
to
occur
every
4/5
years

•  Signiﬁcant
increase
in
ITC’s
claimed
year
over
year

BoastCapital.com
|
@BoastCapital
|
BoastCapital.com/blog

Our Team

Contact Information
Jeff Christie
VP Alberta and Prairies
403-589-2809
jchristie@boastcapital.com


www.mitacs.ca 37www.mitacs.ca
Delivering innovation
through research and
development
Naeema Bhyat
Business Development Director,
Alberta
May 13, 2014

www.mitacs.ca 38
Who is Mitacs and Why Partner with Us?
!   Na&onal
research
network

!   15
years
in
opera&on

!   37
research
partners

!   61
university
partners

!   Almost
10,000
research
projects
to
solve
business

problems
and
drive
innova&on

www.mitacs.ca 39
Annual snapshot
Why Mitacs?

www.mitacs.ca 40
The Mitacs network
Why Mitacs?
§  Small
&
medium
business

§  Large
business

§  Government

§  Not-‐for-‐proﬁt
&
hospitals

ü  Computer
science

ü  Engineering

ü  Anthropology

ü  Economics

ü  Chemistry

ü  Geography

ü  Health
sciences

ü  GeneDcs

ü  Social
work

ü  Forestry

ü  History

ü  Languages
&
linguisDcs

ü  MathemaDcs

ü  Business

ü  EducaDon

ü  InteracDve
arts

ü  Psychology

ü  And
more…

www.mitacs.ca 41
Business Advantages
Why Mitacs?
!   Access
experDse
not
currently
in-‐
house

!   Leverage
R&D
budget
and
may
claim

SR&ED
tax
credits

!   Tap
into
a
naDonal
research
network

!   Develop
IP

!   Pipeline
for
recruitment
of
talent

!   Mitacs
assistance
throughout

applicaDon
process

IndustryIndustry International
Academic

www.mitacs.ca 42
Research Outcomes
!   Pulp
mill
saves
$40,000/year
with
new

heat
recovery
system

!   RoboDcs
company
enhances
drone

aircrat
camera
prototype

!   Shale
caprock
characterizaDon
tools

developed

!   Enhanced
GPS
navigaDon
technology

commercialized

!   Regulatory
environment
for
geothermal

energy
invesDgated

Why Mitacs?

www.mitacs.ca 43
Building research collaborations
!   Large-‐scale,
mulDdisciplinary
projects

!   From
$15,000
to
$2M+

!   Development
of
IP

!   Top
research
talent

!   Matching
funding

!   Scalable
projects

!   Quick
applicaDon
–
6
week
approval

www.mitacs.ca 44
$15,000
$5,000
$10,000
4
months
=
Funding cycle
Mitacs Accelerate

www.mitacs.ca 45
Scalability: build large-scale projects,
“clusters”
!   First
1
to
5
internship
units:
industry
funding
matched
1:1

Mitacs Accelerate
!   6
internships
$80,000
(cluster)
$44,000
from
Mitacs,
$36,000
from

partner.

Minimum
3
interns.

!   Access
researchers
from
mulDple
disciplines
for
the
same

research
project

4
months
4
months
4months
4
months
4
months
4
months

www.mitacs.ca 46
!   Two-‐year
projects

!   Postdoctoral
experDse

!   Leveraged
funding

!   RelaDonships
with
experts

!   EvaluaDon
of
potenDal

employees

!   Access
to
specialized
sotware

and
equipment

Develop in-house R&D capacity

www.mitacs.ca 47
$50,000
$7,500
$57,500
Mitacs Elevate Annual Funding cycle
Mitacs Elevate

www.mitacs.ca 48
Partners
!   Small
and
large
businesses
with
faciliDes
in
Canada

!   DomesDc
or
foreign-‐owned

!   May
include

–  UDlity
providers

–  University
spin-‐oﬀs

–  First
NaDons
development
corporaDons

–  Industry
associaDons

!   Limited:
hospitals,
NGOs,
municipaliDes,
government

agencies,
not-‐for-‐proﬁt

Mitacs Accelerate

www.mitacs.ca 49
Our
Funding
Partners

www.mitacs.ca 50
Next Steps
!   Contact
me
to
discuss
research

goals:

!   Find
a
local
representaDve:

mitacs.ca/accelerate/contact-‐us

Naeema
Bhyat

Business
Development
Director

Alberta

nbhyat@mitacs.ca

Mobile:
(403)
478-‐3101

IRAP Overview
Industrial Research Assistance Program (IRAP)
Lynn Sutherland, Industrial Technology Advisor
13 May 2014

IRAP Overview
Overview
• About National Research Council (NRC)
• NRC Lines of Business
• Industrial Research Assistance Program (IRAP)
• IRAP Advisory Services
• IRAP Programs
• Criteria & Access
• Questions/D

IRAP Overview
About NRC
•  2012-13 budget: $774M
•  Over 4,000 employees and
650 volunteer and independent visitors
•  Wide variety of disciplines and broad array of services
and support to industry
IRAP
Research
facilities
53

IRAP Overview
Science
Infrastructure
Industrial Research
Assistance
Program (IRAP)
NRC Business Lines
54
Strategic
Research &
Development
Technical
Services

IRAP Overview
Strategic R&D
•  Mission‐oriented
research and technology
development
•  Deliver high impacts
for Canada
55

IRAP Overview
Technical Services
• NRC helps clients solve
immediate problems
• Shorter term focus on
client needs based largely
on fee-for-service
56

IRAP Overview
Science Infrastructure
• NRC helps clients effectively
utilize specialized scientific
infrastructure
• Includes managing
the country’s large‐scale
research infrastructure
by leveraging our national
perspective, international
linkages and track record
of providing facility access
to user communities
57

IRAP Overview
Industrial Research
Assistance Program
• Supports innovative Small-
Medium Sized Enterprises
(SMEs)
• Advisory Services
“Company Coaching”
• Research & Development
“De-Risking”
• Financial Contributions
58

IRAP Overview
www.nrc-cnrc.gc.ca/eng/irap/index.html
59

IRAP Overview
IRAP Advisory Services
60
• Over 250 Industrial Technology Advisors across
Canada:
•  34% have been entrepreneurs
•  45% have run their own R&D facility and/or been a leader within an R&D facility
•  41% have worked in a college, cégep or university
•  75% have masters or PhD education
• Diverse areas of expertise:
•  Information and Communications Technology
•  Energy, Mining, Environment
•  Chemicals, Plastics, Composites
•  Agriculture, Bio-Products, Life Sciences
•  Industrial Engineering, Manufacturing, Construction, Civil
•  Business, Finance

IRAP Overview
IRAP Programs
61
• Technology Innovation Projects
• Youth Employment
• Business Innovation Access Program
(***new*** April 2014)

IRAP Overview
Basic Criteria
62
•  small and medium-sized enterprise in Canada, incorporated and
profit-oriented
•  have 500 or fewer full-time equivalent employees
•  have the objective to grow and generate profits through development
and commercialization of innovative, technology-driven new or
improved products, services, or processes in Canada
•  have business and management capabilities in the firm and the
potential to achieve the expected results and outcomes associated
with the proposed project
•  have financial capabilities in the firm and plan to commercialize the
developed technologies
•  new technical developments within the project and its potential impact
on the firm

IRAP Overview
How to Access
63
• The potential client works directly with an
Industrial Technology Advisor to determine a fit.
• ITAs
•  Calgary: ICT (4), Ag/Bio/LifeScience (3), Energy (2), Chem/
Materials (2), Manufacturing/Construction (1)
•  Edmonton: ICT (3), Ag/LifeScience (2), Manufacturing (1)
•  Lethbridge: Industrial/ICT (1)
•  Red Deer: Chem/Energy (1)
• Concierge Services 1-855-534-8433 or
Concierge-Guide-Expert@nrc-cnrc.gc.ca

Questions
Thank you
Lynn Sutherland, Industrial Technology Advisor
lynn.sutherland@nrc-cnrc.gc.ca

Questions?
May 13, 2014

Innovation Funding Lunch & Learn May 13, 2014

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