National Research Council Canada-NRC

National Research Council Canada-NRC

July 21, 2015 10:01 ET

Minister Goodyear Announces Support to Help Canadian Tech-Businesses Grow and Prosper

KITCHENER, ONTARIO--(Marketwired - July 21, 2015) - Funding that will provide Canadian entrepreneurs with the resources and expertise needed to develop their business plan, seek future financing and cultivate new international markets for products and services was announced today by the Honourable Gary Goodyear, Minister of State (Federal Economic Development Agency for Southern Ontario), Stephen Woodworth, Member of Parliament for Kitchener Centre, and Peter Braid, Member of Parliament for Kitchener-Waterloo. The Government of Canada's investment in Communitech Corporation, was made through the Canada Accelerator and Incubator Program (CAIP).

With this investment, Communitech and its partners at the University of Waterloo, Wilfrid Laurier University, and the Waterloo Accelerator Centre will receive up to $9.7 million in funding over five years.

These organizations play an important role in preparing early stage companies for successfully accessing investment capital, and serve as an invaluable resource for entrepreneurs in developing products for a competitive global marketplace.

Quick Facts

  • On June 20, 2014, Prime Minister Stephen Harper announced fifteen incubators and accelerators chosen to advance in the selection process for CAIP, which is designed to help outstanding small and medium-sized Canadian enterprises grow, prosper and create jobs. Communitech is the fifteenth incubator and accelerator to be announced as part of CAIP.

  • Delivered by the National Research Council of Canada's Industrial Research Assistance Program (NRC-IRAP), CAIP provides support in the form of non-repayable contributions to a small and select number of best-in-class accelerators and incubators. Recipients are required to demonstrate matching contributions on at least a 1:1 basis during the period of the contribution funding.

  • Communitech works with local partners - the University of Waterloo Velocity, the Laurier LaunchPad and the Waterloo Accelerator Centre - to deliver a mix of accelerator and incubator programs. These partners have worked together for a number of years to support small and medium-sized businesses that are poised for rapid growth. Waterloo Region companies, such as Plasticity Labs, Thalmic Labs, and MappedIn have received help from these programs in making the transition from start-up to successful company.

Quotes

"Today's announcement will ensure Canada's promising start-up businesses have the resources they need to grow, innovate and create jobs right here in Ontario. Investing in Communitech is just another example of our government's commitment to strengthening Canada's science and technology sector. I'm proud to say that the Government will continue to support Canadian innovation, create jobs, and promote economic growth."

Gary Goodyear, Minister of State (Federal Economic Development Agency for Southern Ontario)

"This announcement is yet another example of our Government's commitment to jobs, growth, and prosperity in Kitchener and across Canada. The nearly $9.7 million pledged to Communitech today will foster the growth of numerous small and medium-sized businesses that are our country's best job creators."

Stephen Woodworth, Member of Parliament for Kitchener Centre

"Our government is committed to low taxes and connecting small and medium-sized businesses across the country with the resources they need to grow and innovate. Today's announcement is great news for the Kitchener-Waterloo region, as local companies will benefit from this investment."

Peter Braid, Member of Parliament for Kitchener-Waterloo

"This investment by the Government of Canada through the Canada Accelerator and Incubator Program will help create and support hundreds of new globally-focused companies in Waterloo Region. We look forward to preparing those companies to do business internationally while creating more jobs in Canada."

Iain Klugman, president and CEO, Communitech

Related Product

  • Backgrounder - Canada Accelerator and Incubator Program (CAIP) - Communitech Corporation

Additional Links

Prime Minister Stephen Harper helps Canadian start-up companies to grow and prosper

Communitech Corporation

Twitter: @nrc_cnrc

Canada Accelerator and Incubator Program (CAIP)

Communitech Corporation

In 2013, the Government of Canada allocated $60 million over five years to the Canada Accelerator and Incubator Program (CAIP) through the Economic Action Plan, with an additional $40 million in 2014, to help outstanding incubators and accelerators expand their services to small and medium-sized businesses.

Communitech Corporation will receive up to $9.7 million in CAIP funding over the next five years to provide local entrepreneurs with the resources and expertise needed to launch their businesses. Communitech works with local partners - the University of Waterloo Velocity, the Laurier LaunchPad and the Waterloo Accelerator Centre - to deliver a mix of accelerator and incubator programs. These partners have worked together for a number of years to support small and medium-sized businesses that are poised for rapid growth. Waterloo Region companies, such as Plasticity Labs, Thalmic Labs, and MappedIn have received help from these programs in making the transition from start-up to successful company.

Communitech is the fifteenth incubator and accelerator to be announced as part of CAIP. The other CAIP recipients are the following:

  • Manitoba Technology Accelerator (MTA)
  • Inno-centre
  • PEI BioAlliance
  • Invest Ottawa, in collaboration with Wesley Clover and PARTEQ Innovations
  • Centre d'entreprises et d'innovation de Montréal (CEIM)
  • University of Alberta (with TEC Edmonton and Innovate Calgary)
  • BC Technology Industry Association (BCTIA)
  • HIGHLINE
  • The Centre for Drug Research and Development (CDRD), in collaboration with CDRD Ventures Inc.
  • Wavefront Wireless Commercialization Centre Society
  • Propel ICT
  • Bioenterprise Corporation
  • Ryerson University, in partnership with Simon Fraser University and the University of Ontario Institute of Technology
  • The Next 36

The one-time request for proposals for the Canada Accelerator and Incubator Program was launched on September 23, 2013. It ended on October 30, 2013, with close to 100 applications received. All proposals were assessed and presented for evaluation and recommendations to the independent Canadian Venture Capital Expert Panel, a five-member panel with extensive experience in the venture capital asset class, business, and finance.

The National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) evaluated all proposals based on strict eligibility and selection criteria, including:

  • The extent to which the project will encourage the growth of early-stage firms that represent superior investment opportunities;
  • The potential of the project to develop entrepreneur networks with other important firms and organizations, in order to provide entrepreneurs with a broader range of specialized services;
  • The ability of the organization to demonstrate matching resources, either financial or in-kind, (i.e. mentoring resources, administrative support) for the proposed activities; and,
  • A credible demonstration that the proposed activities will be incremental to existing operations.

Delivered by NRC-IRAP, CAIP provides support over a five-year period in the form of non-repayable contributions to a limited number of best-in-class accelerators and incubators. Recipients will be required to demonstrate matching contributions on at least a 1:1 basis during the period of the contribution funding.

Maximum contributions to accelerators and incubators under the program are up to $5 million per year for each selected outstanding organization.

What is a business accelerator or incubator?

Accelerator: Typically for-profit organizations owned and operated by venture capital investors, who intend to generate returns from equity-based investments in their client firms. Accelerators provide a range of services to early-stage firms, including financial support, business advice, office and development space and complementary services offered by partner organizations.

Incubator: Typically not-for-profit organizations that offer similar services to accelerators but tend to provide longer tenure for participating firms and a broader suite of services in terms of physical space and mentorship. Incubators are often sponsored by universities, colleges and economic development corporations.

Contact Information

  • Media Relations Team
    National Research Council of Canada
    613-991-1431
    1-855-282-1637 (24/7)
    media@nrc-cnrc.gc.ca

    Erica Furtado
    Director of Communications
    Office of the Honourable Gary Goodyear
    613-943-7599