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2018
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Innovation Guelph – Fuel Injection Seed Funding Program Application Guide 2018
Introduction Bioenterprise Corporation was awarded funds in 2015 to work in partnership with Innovation Guelph to assist start-ups and early-stage innovative businesses in Southern Ontario through the commercialization stage to the market entry stage, allowing these businesses to grow by generating revenue and attracting follow-on private investment. Bioenterprise and their project partner Innovation Guelph will work collaboratively to provide specialized industry expertise and business coaching, as well as distribute up to a maximum of $30,000 in matching seed funding to innovative businesses in the agriculture and agri-foods, sustainable and environmental technologies, advanced manufacturing and social innovation industry sectors. The Innovation Guelph program also aims to increase the number of sustainable women-led businesses in the City of Guelph and surrounding area. Both Bioenterprise and Innovation Guelph will provide seed funding on a one-to-one matching basis up to a maximum of $30,000, and provide support services including mentoring/coaching, market and competitive analysis, financial and marketing strategy, investment preparation, and introduction to strategic partners on a project-to-project basis.
Program Milestones
2015 Program Launch September 1, 2015
2015 Application Round 1 CLOSED
2016-17 Application Round 2 CLOSED
2016-17 Application Round 3 CLOSED
2017-18 Application Round 4 CLOSED
2018 Application Round 5 October 2018
2018 Program Completion December 31, 2018
* Additional open calls for proposals may occur annually, please check the website to stay abreast of program updates.
Application Process Step 1: Open Call for Applications Innovation Guelph will post an open call for Fuel Injection applications in the spring of 2016 & 2017 and fall of 2018. All Fuel Injection prospects should watch the Innovation Guelph website (http://www.innovationguelph.ca/fuel-injection/) for program updates and due dates for applications.
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Step 2: Letter of Intent Interested applicants must submit a Letter of Intent (LOI) via an online submission link provided on the Innovation Guelph website. The LOI is intended to assist Fuel Injection prospects in determining their eligibility and will provide basic project details to Innovation Guelph prior to submitting a full application. Not all businesses that submit an LOI will be invited to submit a full application.
Step 3: Initial Project Guidance If the business’ LOI is approved, the applicant will be invited to submit a full proposal consisting of an application intake form, application workbook and a budget template, which will be provided by Innovation Guelph. Innovation Guelph’s client services team will provide preliminary support to applicant entrepreneur/business in terms of project scope and milestones. Contact: [email protected]
Step 4: Formal application The applicant will be responsible for completing and submitting the following documents (to be provided by Innovation Guelph):
1. Innovation Guelph Fuel Injection Application Workbook, which includes: a. Intake form b. Project Milestone Plan c. Budget
2. Proof of matching funds a. Financial statement or letter from financial institution demonstrating funds are available; b. Representation from the applicant entrepreneur/business regarding use of matching
funds for the project; 3. Supporting documents such as business plan, executive summary, or pitch deck (strongly
recommended)
4. Consultant CV* and quotes if relevant.
Step 5: Evaluation by Selection Committee Step 6: Application Response & Recommendations
* If proposing to use a pre-determined consultant, the applicant must provide the consultants CV as part of the application, and the consultant must be prepared for a reference check by Innovation Guelph staff.
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Eligibility Criteria All applicants must meet these basic eligibility criteria:
▪ The applicant must be early-stage or in the start-up phase of development and the business must be headquartered in Southern Ontario (regions are outlined in Appendix A)
▪ The applicant must be incorporated (Ontario or federal), and have less than 50 employees ▪ The applicant must be able to demonstrate matching funds up to a maximum of $30,000 in order
to receive seed funding. o Stacking of public funding (federal, provincial or municipal) is not permitted and will not
be considered matching funds. ▪ There is a demonstrated need for the seed funds, meaning that the project likely won’t go forward
without a cash injection. ▪ The applicant has a unique, innovative project in one or more of the following sectors: the
agriculture and agri-food sectors, sustainable and environmental technologies, social innovation, and manufacturing sectors
▪ There is a benefit (directly or indirectly) to local/provincial community ▪ There is an economic impact (job creation, revenue generation, add-on investment) to Ontario ▪ The business opportunity has potential to address Canadian or international markets ▪ The applicant has not received past funding from other FedDev Ontario IBI delivery partner
programs, including: o Bioenterprise Corporation - Seed Funding Program
http://bioenterprise.ca/index.cfm?page=seed_funding
o Innovation Guelph – Fuel Injection Program
http://innovationguelph.ca/fuel-injection/
o Communitech - Fierce Founders Accelerator
https://www.communitech.ca/how-we-help/support-for-startups/fierce-founders/fierce-founders-
accelerator/
o Waterloo Accelerator Centre – Jumpstart
http://acceleratorcentre.com/acjumpstart/
o Ontario Centres of Excellence – SmartStart Seed Fund
http://www.oce-ontario.org/programs/entrepreneurship-programs/smartstart-seed-fund
o Northumberland CFDC –N1M
https://financingandstrategy.com/n1m/
o TechAlliance – BURST
https://techalliance.ca/burst/
Eligible Project Types Fuel Injection projects will focus on one or more of the following project areas. To be sure that a proposed project is eligible, please confirm with Innovation Guelph’s Client Services Team
▪ Business Management & Strategy ▪ Technical Expertise Development (IT or Engineering) ▪ Leadership Training ▪ Talent Recruitment ▪ Branding & Marketing ▪ Process Efficiency & Optimization ▪ New Product Development ▪ Prototyping & Product Piloting ▪ B2B Sales & Business Development ▪ Investment Readiness & Preparation
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Eligible Project Activities and Costs
Category Eligible Activities Eligible Costs
Business and Technical Expertise Development
Professional services i.e. Intellectual Property review and registration Legal fees (up to a
maximum of $10,000); Consulting fees; Mentorship.
Regulatory strategy development
Establishment of business operations i.e. marketing/branding strategy
Training
Applied research and development
Product testing
Sub-contractor fees; Consultant fees; Equipment assets (must be leased and/or retained†).
Product engineering
Regulatory focused activities
Pilot and demonstration manufacturing/processing
Technology development or optimization‡ i.e. next generation prototype or further improvement of Intellectual Property (not discovery)
Manufacturing and Processing Operations
Development of new processing techniques Sub-contractor fees; Consulting fees; Audits; Service mark fees.
Packaging and/or label requirements i.e. certifications
Process and/or facility certifications
Market Development
Marketing strategy development and implementation Consultant fees; Sub-contractor fees; Travel§ (North America) Conference registration & exhibition fees.
Branding
Development of marketing products i.e. promotional materials, advertising, web design, package/label design
E-commerce strategy development and implementation
Participation in conferences and trade shows i.e. exhibit or present**
Investment readiness preparation
Sales and marketing strategy development and analysis
Mentorship; Consultant fees.
Financial modeling
Business planning
Development of supporting documentation i.e. pitch deck, executive summary
Capital Expenditure Costs (Not to exceed 25% of total project cost)
Leasehold improvements as category are not eligible Consultant fees, licensing, equipment and assets
Costs related to commissioning of new equipment or modification/relocation of existing equipment (infrastructure and commissioning) related to the project may be eligible
Labour/Salaries/Benefits (On direct project activities only)
Internal employee labour costs incremental to the project not to exceed 15% of total project cost Internal employee
labour costs incremental to the project not to exceed 15% of total project cost.
Owner Salary costs not eligible
Sales Tax/HST is not an eligible expense
Participation in conferences and trade shows i.e. exhibit or present**
† Must be written and signed off on by both parties in an addendum to the Project Contribution Agreement for successful project agreements. ‡ Must be completed by a third party. § Airfare and mileage considerations must adhere to Treasury Board of Canada policies (i.e. economy class and ¢/km). Only Prime transportation is eligible. **Strategic meetings with collaborators, customers or investors must be scheduled and approved prior to conference date.
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Ineligible Costs: ▪ Costs of land, building or vehicle purchase
▪ Refinancing
▪ Costs of intangible assets such as goodwill, whether capitalized or expensed
▪ Depreciation or amortization expenses
▪ Interest on invested capital, bonds, debentures, or mortgages
▪ Bond discount
▪ Losses of investments, bad debts and any other debts
▪ Fines or penalties
▪ Costs related to litigation
▪ Non-incremental wages
▪ Fees for administrators, including payments to any member or officer of the recipient’s Board of
Directors
▪ Opportunity costs
▪ Food, accommodation and entertainment costs
▪ Costs of membership in a professional body
▪ Lobbyist fees
▪ Cost of conference or tradeshow admission if not exhibiting or presenting
▪ Costs associated with basic research and development activities
▪ Owner Salary costs
▪ Sales Tax/HST
Application Assessment and Evaluation The Evaluation Committee†† will assess projects in two steps.
1. General Assessment Criteria — utilizes an evaluation rubric and will consider details provided in the Letter of Intent (LOI) – constitutes 75% of the total score.
2. Merit Assessment Criteria — additional points can be awarded by the Evaluation and Selection Committee based on additional details or supplementary documentation provided by the company and/or the evaluation committee – constitutes 25% of the total score.
A project must meet all the General Assessment Criteria to be considered for Merit Assessment. General Assessment Criteria
1. Applicant has completed the application requirements in full.
2. All basic eligibility requirements have been met (outlined in Eligibility Criteria section of the current Program Guide)
3. The project clearly aligns with Fuel Injection’s Eligible Activities
4. The project description, activity budget, and milestone plan are completed and provide sufficient details to complete a merit-based assessment.
5. Applicant has acknowledged his/her agreement with the terms and conditions of the application form.
†† The Evaluation Committee will be an Innovation Guelph committee with participation of program partners including Bioenterprise as a committee observer. The committee will evaluate applications during a half-day session with a goal to move forward with a minimum of 19 projects in the 2018 round. These targets will change depending on program year.
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6. The application provides enough information to address all of the evaluation criteria listed below:
A. Project/Problem Description ▪ Project purpose is clear ▪ Problem clearly stated ▪ Approach clearly stated ▪ Project team identified ▪ Innovation is clearly articulated (E.g. product, process, marketing, and organizational
innovation) ▪ Project significance to company’s growth strategy
B. Expected Outcomes ▪ Outcomes are tangible within the project timeline and impactful (E.g. jobs created,
new revenues generated, add-‐on investment secured)
▪ New products/services launched ▪ Sustainable practices for the company identified (E.g. cost, waste, water or energy
savings achieved - environmental footprint)
C. Milestones & Budget ▪ Milestones are identified & clearly articulated ▪ Activities are clearly articulated with achievable outcomes ▪ Budget aligns with activities ▪ Costs are realistic ▪ Use of seed funds are clear ▪ Timeline is realistic
Recipient Agreement Process Applicants will be notified as funding decisions are reached, usually within 30 business days from the application due date. Successful applicants (“Recipient”) must enter in to a Contribution Agreement with Innovation Guelph. All recipients will also be registered as an Innovation Guelph client and agree to the Client Services Agreement provided in the client intake process. Terms of the project work plan will be formalized by way of the development and signing of the Contribution Agreement. Through this Agreement, the Recipient will work with Innovation Guelph’s client services team and will report to a lead project mentor to schedule monthly status meetings and regular correspondence for mentorship and coaching related to the project. Seed funding will be released to the Recipient on a milestone basis, outlined below:
▪ 50% of activity seed financing released with verification of activity initiation ▪ 25% of activity seed financing released upon recommendation by a lead project mentor and
completion of Interim Report ▪ 25% of activity seed financing released upon completion of project and the approval of final
reporting requirements The Recipient will be responsible for tracking expenses against each activity using a template provided upon approval, as well as for storing receipts/invoices for a minimum of 6 years for auditing purposes.
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With regards to Innovation Guelph’s reporting requirements, the Recipient will be required to complete the IG quarterly Client survey. Second and third seed funding installments will require the submission of an Interim Expenditures Report and a Project Completion Report, respectively – templates will be provided. Recipients are required to complete Annual Surveys for up to 6 years after the completion of the project. The client surveys and reports are designed to measure achievements and outcomes from the project and provide feedback on the relevance, timeliness and accuracy of the services received through the program. Details of these requirements will be outlined in the Contribution Agreement and Schedule A.
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Appendix A Applicant Entrepreneur/Business must be located within the regions outlined below: Territory – Southern Ontario Southern Ontario includes the following 2011 Statistic Canada Census Regions:
1 Stormont, Dundas and Glengarry; 2 Prescott and Russell; 6 Ottawa; 7 Leeds and Grenville; 9 Lanark; 10 Frontenac; 11 Lennox and Addington; 12 Hastings; 13 Prince Edward; 14 Northumberland; 15 Peterborough; 16 Kawartha Lakes; 18 Durham; 19 York; 20 Toronto; 21 Peel; 22 Dufferin; 23 Wellington; 24 Halton; 25 Hamilton;
26 Niagara; 28 Haldimand-Norfolk; 29 Brant; 30 Waterloo; 31 Perth; 32 Oxford; 34 Elgin; 36 Chatham-Kent; 37 Essex; 38 Lambton; 39 Middlesex; 40 Huron; 41 Bruce; 42 Grey; 43 Simcoe; 46 Haliburton; and 47 Renfrew.
See the following maps below for visual representation: Map 1: All Regions of Southern Ontario,
Map 2: Western Ontario
Map 3: Central and Eastern Ontario.
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