With reduced levels of funding from venture capitalist, delays in new product introduction or a slower revenue ramp, many innovation-based companies are seeing their cash flow diminish quicker than initially anticipated. Companies in these situations reduce or eliminate costs wherever possible. However, along with cost controls, management should consider sources of funding from governments or government-funded organizations. For instance:
- Has your management team considered the Industry Research Assistance Program (IRAP) which provides funding for innovation-based companies?
- If your company is forging a path towards a greener Canada, maybe funding from Sustainable Development Technology Corporation (SDTC) is in the cards.
- If your company is developing technology with a Canadian university while working with a partner on commercialization then Precarn Corporation could be part of the answer to your funding needs.
- Are you an innovation-based Canadian Controlled Private Corporation (CCPC)? If so, ensure that your Scientific Research and Experimental Development (SRED) claim is completed in a timely manner as a percentage of costs are recoverable with certain criteria and limits. There are also lending organizations that will advance your SRED claims based on your history with the program.
These programs are just a few of the many sources of funding that can provide your company with additional cash flow while your revenue ramp takes hold or more traditional funding sources materialize.