Posts tagged Ontario
Today, during Ontario’s Civic Holiday, I finally got around to filling out Deloitte Technology Fast 50™ CEO Survey. There was an interesting question that sparked a thread that I’ve been thinking about lately:
“Specifically, do you think the SR&ED tax credit program is pretty good as is, or needs improvement? If it needs big changes, what would be the first change you would make?”
For those of you who don’t know what the SR&ED program is, go learn more because it can save your business tons of cash over time and help you finance your business with non-dilutive government assistance.
For those of you running (or have previously run) early-stage stage startups, here are my thoughts: Currently SR&ED will refund a portion of a startup’s R&D costs based on expenses incurred during the previous year – some of those earliest expenses claimed were incurred 18 months prior to the claim. For startups, this is an eternity. Today, startups can grow and die violently before they get their first SR&ED claim, which could have helped them to pay one more employee, solve one more problem or help one more customer.
The Canadian government should consider modifying the SR&ED program to include a faster-reimbursement timeframe for startups (making less than $1,000,000 in revenue per year). For example, this could mean making claims quarterly and being reimbursed within 60-90 days – this would massively improve startup financing in the short-term. A modification, as requested, would help startups build value and growth potential more quickly and help the overall competitiveness of the Canadian technology sector.
Will anyone help to stand behind an initiative to get the Canadian government to improve the SR&ED program for startups? Join the conversation in the comments below.
I want to draw your attention to a blog post that I wrote on the BlackBerry Partners Fund website a few months ago. In times of recession, when cash is tight and purchase orders are scarce, understanding how and where to receive financing becomes of paramount important.
For additional details, please refer to the full article.
Here are some of the highlights:
- Apply for IRAP funding (provided by the NRC)
- Apply for SR+ED tax claims through the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program
- Funding Source: The Investment Accelerator Fund (IAF). Through investment of up to $500K, the IAF helps launch high potential technology ventures.
- Funding Source: MaRS Discover District has a number of services that can help entrepreneurs. They have funding from the Ministry of Research and Innovation for business projects and investments of up to $500,000 in seed capital.
- Ontario Centre of Excellence for Communications (OCE) and Information Technology helps startups by co-investing in the research and development of leading-edge, industrially relevant, technologies through partnerships at universities, and moving the results into the marketplace, through existing companies or new, spin-off enterprises.
If you are a mobile start up, please feel free to apply for Jump Start Financing at the BlackBerry Partners Fund, which can invest up to $500K USD into innovative start ups.
After being a member of the Toronto Biotechnology Initiative (TBI) for several years, I recently joined the newly founded Mentorship Committee to help develop a program for TBI that bring mentors and proteges together to promote skill and knowledge development.
A short bit on TBI:
The Biotechnology Initiative represents and promotes life sciences technologies and encourages their commercial success in Ontario through Government advocacy, stakeholder engagement, mentoring and education and promotion of Ontario’s world-class science and industry.
With over 300 members, TBI supports a wide range of sectors: academic and research institutions; government; companies from the biopharmaceutical industry, agriculture biotechnology sector, agricultural/ petrol bioproducts, medical devices, biopharmaceuticals, pharmaceutical multinationals, contract research/manufacturing, financial, legal, human resources and consultants.
To those of you that are interested, we will be starting a 6-month pilot program soon. Feel free to get in contact with me if you wish to be either a mentor or a protege for this period. After the pilot, we will open up the program to new TBI members, who may join TBI for the benefits gained from this mentorship program and from being a part of the TBI community.
I will keep everyone in the loop with regards to key dates.
Ontario Centre’s of Excellence (OCE) is putting on their annual event called Discovery 09 on May 11-12, 2009.
The event is expected to draw an impressive crowd of over 2000 people and over 200 booths. The event will be divided among three major Zones: Green Tech, Health & Digital. Attendees will have the opportunity to explore a huge showcase of promising ideas across numerous research, academic and industrial sectors as well as connect with the leaders, dreamers and doers who are driving Ontario’s innovation revolution.
I recently confirmed a speaking engagement on a panel that will be held on May 12th called “Building a Digital company for 2010.” Should be fun.
If you have a startup and you’re looking to go international, this is the place to be. You’ll have the opportunity to meet with 80 Canadian trade ministers representing 26 Canadian trade countries from around the world. Rick Segal talks about the value of these Canadian trade ministers in his blog, The Post Money Value.
I hope to see you all out there!