FedDev Ontario is a federal economic development agency that was launched in 2009 to support economic recovery, growth, and innovation in Southern Ontario. It provides funding and support through various initiatives to promote job creation, commercialization of innovation, entrepreneurship, skills development, and economic diversification. One of its programs, Investing in Business Innovation, provides up to $190 million to help startups leverage private investment for commercialization activities by funding up to 1/3 of eligible project costs, matched by at least 2/3 private investment.

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3. Overview
• Introduction to FedDev Ontario
• Investing in Business Innovation
• Questions and Answers

4. Background
• Federal Economic Development Agency
for Southern Ontario (FedDev Ontario)
launched by the Prime Minister - August
13, 2009
• Created in response to southern
Ontario’s economic challenges - tailored
to the region’s unique needs and
priorities
• Supporting southern Ontario’s economic
recovery through job creation, growth,
and innovation
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5. The Agency
• Head Office in Kitchener
• Regional offices in Stratford,
Peterborough, Toronto and Ottawa to
serve the diverse needs of southern
Ontario
• Over 200 staff delivering
on our mandate
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6. Creating a Southern Ontario Advantage
FedDev Ontario is working with southern Ontarians to:
• Promote economic growth
and job creation
• Foster innovation
• Enhance productivity
and competitiveness
• Support regional diversification
• Position southern Ontario as a
strong force on the global stage

7. Achieving a
Southern Ontario Advantage
• Encouraging youth to enter Science,
Technology, Engineering, Mathematics
(STEM) fields
• Encouraging the next generation of
innovators and entrepreneurs
• Supporting increased access to capital
for higher-risk endeavours
• Supporting communities to be
prosperous and to diversify
• Cultivating and commercializing game-
changing innovation
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8. FedDev Ontario Initiatives
People Advantage
• Youth STEM (up to $20M)
• Graduate Enterprise Internship (up to
$80M)
• Scientists and Engineers in Business (up
to $50M)
Knowledge Advantage
• Applied Research and Commercialization
Southern
Ontario Initiative ($15M over 2 yrs)
Advantage • Technology Development Program (up to
$75M)
Entrepreneurial Advantage
• Investing in Business Innovation (up to
$190M)
Prosperity Advantage
• Prosperity Initiative - Productivity,
Diversification and Competitiveness (up
to $210M)
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9. Entrepreneurial Advantage
• Help innovative start-up companies leverage
angel and venture capital investments to
accelerate commercialization
• Support angel networks to attract new investment
• Programs: Investing in Business Innovation
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10. Investing in Business Innovation
• Overview
• Eligible Applicants – Start-up Businesses
• Investor Requirement
• Funding
• Application Process
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11. Investing in Business Innovation
• Up to $190 million through March 2014
• Help start-up businesses bring new products,
processes and practices to market faster by
leveraging private sector investment to carry out
eligible commercialization activities
• Support angel investor networks and associations
in their outreach and promotion activities to
attract investment
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12. Investing in Business Innovation
Eligible Applicants - Start-up SMEs:
• Registered businesses planning to undertake
commercialization activities in southern Ontario
• Have less than 50 employees
• Must have a signed draft term sheet from a recognized
angel or venture capital investor, conditional on Investing
in Business Innovation funding, as proof of a funding
commitment.
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13. Investing in Business Innovation
Eligible Applicants - Start-up SMEs (cont.):
• Must be utilizing mentoring, counseling, and other
business services from an angel investor or venture
captial partner.
• Priority may be given to start-up SMEs that have already
received one round of funding from an eligible angel or
venture capital investor.
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14. Example of an IBI applicant
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15. Investing in Business Innovation
Investor Requirement:
• Angel Investor - defined as an investor that meets the
Ontario Securities Commission definition of an accredited
investor. The angel investor must also be a member of
an angel investor network in southern Ontario registered
with the National Angel Organization.
• Venture Capital Investor - must be registered with the
Canadian Venture Capital Association, and planning to
undertake investment activities with a southern Ontario
start-up SME.
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16. Investing in Business Innovation
Investor Requirement (cont.):
• Angel or venture capital investor must be prepared to
submit a report to FedDev Ontario outlining their due
diligence procedures and findings
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17. Investing in Business Innovation
Funding for IBI Project
• At least 2/3 of Eligible and Supported Project Costs to be
contribution in Cash by investors
• Up to 1/3 of Eligible and Supported Project Costs to be
funded by FedDev Ontario – to a maximum of $1M
• FedDev Funding disbursed on a reimbursement basis
• FedDev Funding is Repayable
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18. Investing in Business Innovation
• IBI Project: Commercialization Activities that will move
innovative products, processes, or practices closer to
market. Eligible Activities may include:
• Product and process • Marketing studies
applied research • Certification
• Engineering design • Proof of concept
• Technology development • Piloting and demonstration
• Product testing • Problem solving
• Commercialization of
intellectual property (IP)
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19. Why apply to IBI
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20. Investing in Business Innovation
Application Process
• Review IBI Program Guidelines and connect with the IBI
Program Manager or an IBI Project Officer to discuss your
project
• Application to be submitted with draft term sheet prior to
the closing of the investors funding.
• Full application package with supporting documents must
be submitted within 2 weeks.
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21. Investing in Business Innovation
Application Process (cont.)
• Applications are assessed on a first-come first serve
basis when they are complete.
• We are not able to provide estimates of the duration of
the assessment process.
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22. What Can IBI funding do for you?
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23. Presenter: Laura Chan 519-571-6848
laura.chan@feddevontario.gc.ca
For more information about FedDev
Ontario or our initiatives please visit
www.feddevontario.gc.ca
or call us at 1-866-593-5505.
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