If you're an entrepreneur in the tech space, you might know first-hand that securing funding can be one of the biggest challenges form Canadian Startups. Innovative Solutions Canada (ISC) offers companies an opportunity to access non-dilutive funding helping companies develop, test, and commercialize their innovations. Administered by the Government of Canada, ISC connects small and medium-sized enterprises (SMEs) with federal departments seeking innovative solutions for real-world problems.
This program supports businesses by funding R&D, prototyping, and testing, helping them scale their ideas while keeping ownership intact. Whether you're in AI, cleantech, cybersecurity, or health sciences, ISC could be your gateway to growth.
What is Innovative Solutions Canada?
Innovative Solutions Canada (ISC) is a procurement and grant-based program designed to support Canadian startups and SMEs working on disruptive technologies. The program helps businesses with early-stage R&D, prototype development, and testing within government departments.
ISC consists of two core streams:
Challenge Stream – Businesses develop innovative solutions in response to challenges posted by federal departments.
Testing Stream – Provides companies with the opportunity to test their prototypes in real-world government settings.
In addition to non-dilutive funding, the ISC program give companies access to government procurement opportunities, helping them establish credibility and market traction.
Innovative Solutions Canada: Types of Funding Available
ISC provides financial support in three key phases, ensuring businesses receive funding at various stages of product development.
Phase 1: Proof of Concept
Funding: Up to CAD $150,000
Purpose: To help businesses conduct feasibility tests and early-stage R&D to determine the viability of their technology.
Who Can Apply? Canadian SMEs with innovative projects that align with government challenges.
Phase 2: Prototype Development
Funding: Up to $1 million
Purpose: Supports companies in developing working prototypes and refining their solutions for real-world applications.
Who Can Apply? Businesses that have successfully completed Phase 1 and demonstrated the feasibility of their technology.
Phase 3: Commercialization & Procurement
Funding: No direct funding; instead, companies gain procurement contracts with government departments.
Purpose: Helps businesses sell their solutions to the Canadian government, providing a critical launchpad for wider market adoption.
Who Can Apply? SMEs with a validated product ready for procurement by federal agencies.
Eligibility Criteria for ISC Funding
To qualify for ISC funding, companies must:
Be for-profit businesses incorporated in Canada.
Have 499 or fewer employees.
Conduct R&D and innovation within Canada.
Demonstrate how their solution meets one of the posted government challenges.
Additionally, businesses must have the intellectual property rights to their technology and show how their innovation aligns with government priorities such as sustainability, cybersecurity, and healthtech.
Industries That Benefit from Innovative Solutions Canada
ISC supports businesses across a range of industries, including:
Artificial Intelligence & Machine Learning
Cybersecurity & Data Protection
Clean Energy & Sustainability
Biotechnology & Life Sciences
Advanced Manufacturing & Robotics
Space Technology & Aerospace
Smart Cities & Internet of Things (IoT)
How to Apply for ISC Funding
Step 1: Find an ISC Challenge
Visit the Innovative Solutions Canada website.
Browse active challenges posted by government departments.
Select a challenge that aligns with your company’s niche or expertise.
Step 2: Submit a Proposal
Prepare a detailed application explaining how your technology addresses the government’s challenge.
Include technical feasibility, market potential, and business viability.
Ensure you meet eligibility criteria before applying.
Step 3: Secure Funding & Develop Your Innovation
If selected, receive Phase 1 funding to develop a proof of concept.
Successfully completing Phase 1 allows you to apply for Phase 2 prototype development.
Winning companies may secure Phase 3 commercialization contracts with government agencies.
Why Partner with Panna to Secure Funding Through Innovation Canada?
The grant funding landscape can be complex, with numerous programs, eligibility requirements, and application processes. Panna simplifies this journey, helping businesses identify the right funding opportunities and craft compelling applications that increase their chances of success. Whether you’re seeking support through Innovative Solutions Canada, IRAP, SR&ED, or other government-backed programs, our team of experts ensures you maximize your funding potential while staying compliant with program guidelines.
At Panna, we take an end-to-end approach to funding—starting with a tailored strategy to match your business with the most relevant grants, followed by proposal writing, documentation support, and submission assistance. Our direct experience with Innovation Canada’s priorities means we align your application with the key themes of technological advancement, economic growth, and sustainability, giving you a competitive edge in securing funding.
Benefits of Innovative Solutions Canada
✅ Non-Dilutive Funding – Businesses retain full ownership of their technology.
✅ Access to Government Contracts – ISC provides a pathway for companies to sell solutions to federal agencies.
✅ Validation & Credibility – Being funded by the government adds credibility to a business’s innovation.
✅ Scalability & Market Access – Successful applicants gain opportunities for broader commercialization.
Success Stories: Companies That Have Benefited from ISC
Many Canadian startups and SMEs have leveraged ISC funding to scale their innovations. Some notable examples include:
OpSens (Medical Tech): Received funding to develop high-precision fiber optic sensors used in medical applications.
GHGSat (Environmental Tech): Developed satellite-based methane detection for climate monitoring.
Ranovus (Photonics & Data Tech): Secured support for advanced optical interconnects in AI and cloud computing.
These companies have gone on to commercial success, leveraging ISC funding as a launchpad for growth.
Wrapping Up
For Canadian startups and SMEs looking to scale disruptive technologies, Innovative Solutions Canada (ISC) is an incredible opportunity. With up to $1 million in funding available, access to government procurement contracts, and non-dilutive financial support, ISC helps businesses bridge the gap between R&D and commercialization.
🚀 Ready to apply for ISC funding? Visit the Innovative Solutions Canada website to explore active challenges. By partnering with Panna, you gain a trusted advisor that takes the complexity out of government funding—allowing you to focus on innovation and scaling your business.
Let Panna handle the funding process so you can turn your vision into reality with the financial backing you need.
Contact us today to explore your funding options through Innovation Canada.