The funding stack

Applied-research internships co-supervised with a Canadian university.

Purpose

Embed a graduate student or postdoc in your company to work on a defined R&D challenge, co-supervised by a professor.

Ideal stage

Pre-seed to growth. Any incorporated Canadian org with a real research question. Pre-revenue OK.

Funding

$7,500 company contribution + $7,500 Mitacs match = $15,000 per 4–6 month unit. Postdoc units $20,000. Defence & Security Call units up to $25,000.

Eligibility

For-profit or non-profit incorporation. Interns must be at Canadian post-secondary institutions.

TRL fit

TRL 1–6

Source

mitacs.ca

Non-repayable R&D contributions + hands-on advisor (ITA).

Purpose

Pairs advisory services from an Industrial Technology Advisor with non-repayable contributions toward R&D projects.

Ideal stage

Early-stage to growth SMEs pursuing technology-driven innovation with real technical uncertainty.

Funding

Project-by-project in the contribution agreement. Call 1-877-994-4727 to be matched with an ITA.

Eligibility

Incorporated, profit-oriented Canadian company, ≤500 FTEs.

TRL fit

TRL 2–7

Source

nrc.canada.ca

IRAP's dedicated defence stream — $241M envelope.

Purpose

Helps high-potential Canadian SMEs advance made-in-Canada defence and dual-use technologies via IRAP's advisor network.

Ideal stage

SMEs with dual-use or defence-relevant tech needing both capital and guidance.

Funding

$241M national envelope from 2025-26; per-company amounts follow IRAP-style funding.

Eligibility

Canadian SMEs already suitable for IRAP; accessed through the ITA network.

TRL fit

TRL 3–7

Source

canada.ca / nrc.canada.ca

Federal challenges — solve a stated problem, keep the IP.

Purpose

Departments post specific problems and pay Canadian SMEs to solve them. Company retains IP by default.

Ideal stage

Startups with a novel solution — Phase 1 fits TRL 1–4; Phase 2 fits later stages.

Funding

Phase 1: up to $150K / 6 mo. Phase 2: up to $1M / 24 mo (DND may exceed). Testing Stream: contracts up to $2.3M (TS13).

Eligibility

Incorporated in Canada, ≤499 FTEs, majority of wages/FTEs/execs in Canada.

TRL fit

TRL 1–7

Source

ised-isde.canada.ca

DND's challenge-driven innovation program.

Purpose

Pulls private-sector and academic solutions toward CAF and security challenges through five elements: Competitive Projects, Innovation Networks, Contests, Sandboxes, Test Drives.

Ideal stage

Any TRL, but solve a stated DND/CAF challenge — not an unsolicited pitch.

Funding

Competitive Projects: up to $6.75M phased. Innovation Networks: up to $3M / 48 mo. Contests: tens of thousands to $1M+.

Eligibility

Varies by element; some open internationally. Federal employees ineligible.

TRL fit

TRL 1–9

Source

canada.ca (IDEaS)

Scale into defence supply chains via your RDA.

Purpose

$379.2M / 3-year initiative delivered through Canada's seven regional development agencies to help scale and integrate into defence supply chains.

Ideal stage

Established and growth-stage SMEs — NOT for pre-product startups.

Funding

Businesses: up to 75% of eligible costs, interest-free repayable over 5 years. Non-profits up to 90% non-repayable. Indigenous up to 100%.

Eligibility

Varies by RDA. E.g. PrairiesCan: incorporated, 2+ years operating. FedDev Ontario: 5+ FTEs.

TRL fit

TRL 6+

Source

ised-isde.canada.ca

SIF successor — $5B over 6 years for large projects.

Purpose

ISED's large-project fund replacing the Strategic Innovation Fund; DIS commits to prioritize SRF for participating sectors.

Ideal stage

Scale-ups and established companies. Explicitly not an early-stage program.

Funding

Minimum $10M contribution for projects with ≥$20M in total eligible costs. Repayable by default.

Eligibility

Consultation meeting with program officials required before a Statement of Interest.

TRL fit

TRL 7+

Source

ised-isde.canada.ca

Canadian Defence Industry Resilience — production capacity.

Purpose

Funds Canadian businesses to increase production capacity for defence goods, equipment, and supply-chain resiliency.

Ideal stage

Established manufacturers and their supply chains — early-stage should treat as context.

Funding

Caps at $700M per project. First deployment: $1.4B into domestic ammunition production.

Eligibility

Canadian-incorporated corporations. Targeted calls only — no open intake.

TRL fit

TRL 8+

Source

canada.ca (CDIR)

Fast-track frontier defence R&D — quantum & uncrewed.

Purpose

Mechanism to fast-track frontier defence research with purpose-built teams spanning research, industry, government, and military.

Ideal stage

Consortia in quantum, uncrewed systems, and Defence Innovation Secure Hubs.

Funding

$68.2M over 3 years from Budget 2025. Hub calls up to $50M (e.g. UxS hub $29.6M).

Eligibility

Runs calls through IDEaS machinery; typically consortium-led.

TRL fit

TRL 4–7

Source

canada.ca (BOREALIS)

Allied dual-use accelerator — cross-NATO access.

Purpose

NATO's Defence Innovation Accelerator for the North Atlantic — non-dilutive grants plus access to allied test centres and mentorship.

Ideal stage

Dual-use startups seeking allied market access alongside domestic funding.

Funding

Cohort-based grants; test-centre access; alliance-wide mentorship network.

Eligibility

Companies from participating NATO nations. 2027 cohort applications closed Jul 3, 2026.

TRL fit

TRL 4–7

Source

diana.nato.int

Debt & equity for Canadian growth companies.

Purpose

Canada's development bank — loans, equity, and advisory tailored to Canadian SMEs.

Ideal stage

Any stage post-revenue; complements non-dilutive stack.

Funding

Term loans, growth capital, venture equity — sized to the company.

Eligibility

Canadian businesses with a viable plan and repayment capacity.

TRL fit

n/a

Source

bdc.ca