In 2013, the Government of Canada allocated $60 million over five years 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.
PEI BioAlliance will receive up to $3.8M in CAIP funding over the next five years to provide local entrepreneurs with the resources and expertise needed to develop their business plan and seek follow-on financing. PEI BioAlliance provides cluster leadership and incubator services to companies from across Canada and around the world. Market targets include products for human, animal, and fish health and nutrition, including cosmetic ingredients, natural health products, feed additives, vaccines, diagnostics, and pharmaceuticals.
The one-time request for the 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.
