Ontario’s startup funding ecosystem is broad and layered, spanning early-stage grants, R&D incentives, scale-up funding, and sector-specific programs. For founders, the real challenge is not finding funding, but matching the right program to the right stage of growth.
Below is a structured breakdown of the major Ontario government funding programs available to startups and scaling companies.
1. Early-Stage and Startup Support
New founders, students, and early entrepreneurs can access foundational funding to help validate ideas and launch first versions of their businesses.
Starter Company Plus
Provides up to $5,000 in funding along with mandatory training and mentorship through local Small Business Enterprise Centres. Commonly used for early validation, MVP development, and initial operating expenses.
Summer Company
Supports student entrepreneurs aged 15 to 29 with up to $3,000 in total funding, distributed in two stages. It requires a structured business commitment during the summer period.
Black Entrepreneur Program
Offers $50,000 annually for up to five years to qualifying tech startups led by Black founders. In addition to funding, it includes access to investor networks and structured ecosystem support.
2. Innovation and R&D Tax Credits
Ontario offers several tax-based incentives to reduce the cost of research, development, and digital production.
Ontario Innovation Tax Credit (OITC)
An 8% refundable tax credit on eligible R&D expenditures. It is often combined with federal SR&ED credits to significantly offset development costs.
Ontario Interactive Digital Media Tax Credit (OIDMTC)
Provides refundable tax credits of up to 40% for eligible digital media projects, including gaming, animation, and interactive content.
3. Advanced Manufacturing and Mobility Innovation
Ontario supports startups building in automotive, EV, and advanced manufacturing sectors.
Ontario Vehicle Innovation Network (OVIN)
Supports innovation in electric vehicles, autonomous systems, and smart mobility through funding, testing infrastructure, and industry collaboration.
Advanced Manufacturing and Innovation Competitiveness (AMIC)
Provides grants between $500,000 and $1.5 million for manufacturing innovation, productivity improvements, and technology adoption.
4. Regional Development and Scale-Up Funding
These programs support business expansion, job creation, and regional economic development.
Eastern Ontario Development Fund (EODF)
Offers grants and loans covering up to 15% of project costs, with funding ranging from $500,000 to $5 million.
Southwestern Ontario Development Fund (SWODF)
Provides similar support to EODF, with additional community economic development streams that can cover up to 50% of eligible costs.
5. Digital Adoption and Technology Upgrades
These programs help businesses modernize operations through digital tools and infrastructure.
Digital Competence Centre (DCC)
Offers two streams:
Digital Modernization and Adoption Plan grants up to $15,000
Technology Demonstration Program grants up to $50,000 for implementing new technology solutions
6. Life Sciences and Biotech Funding
Ontario supports scaling life sciences companies through both direct grants and venture-backed programs.
Life Sciences Scale-Up Fund (LSSUF)
Provides conditional grants of up to $2.5 million (covering up to 33% of eligible costs) for SMEs ready to scale manufacturing, advance regulatory approvals, or expand production capacity.
Ontario Life Sciences Venture Capital Fund
Allocates capital through venture funds that invest in Ontario-based life sciences and biomanufacturing companies, supporting growth indirectly through VC partners.
7. Export and Trade Expansion
CanExport SMEs
Provides up to $50,000 in funding to support export development activities such as market research, trade shows, and international expansion.
8. Tariff and Trade Disruption Support
Tariff Response and Trade Investment (RTRI)
Offers up to $1 million in non-repayable funding for companies impacted by international tariffs or trade disruptions, helping businesses adjust supply chains and maintain competitiveness.
9. Indirect Venture Capital Support
Venture Ontario Fund
Deploys government capital indirectly through participating venture funds. Startups do not apply directly but benefit by raising investment from participating VC firms.
10. Additional Scale-Up and Innovation Programs
Beyond core funding streams, Ontario also supports growth-stage companies through broader commercialization and productivity programs.
Business Scale-Up and Productivity (BSP) Stream
Supports SMEs with funding for automation, commercialization, and productivity upgrades, often tied to expansion or export readiness.
Ontario Together Fund (OTF)
Focused on strengthening domestic supply chains and critical production capacity, particularly in healthcare and strategic sectors.
11. Innovation Ecosystem and Regional Support
Ontario funds a broader ecosystem of innovation hubs and commercialization networks.
Regional Innovation Centres (RICs)
Provide mentorship, advisory services, and access to early-stage funding pipelines that connect startups to larger provincial programs.
Ontario Centre of Innovation (OCI) Programs
Includes collaboration vouchers, R&D partnerships, and industry-academic funding programs that help startups commercialize technology.
12. Workforce Training and Talent Support
Startup growth is also supported through wage subsidies and training programs.
Canada-Ontario Job Grant (COJG)
Helps employers offset the cost of training new or existing employees, typically covering a significant portion of training expenses.
Skills Development Fund (SDF)
Supports workforce training initiatives, including hiring programs, apprenticeships, and sector-specific upskilling projects.
13. Sector-Specific and Agricultural Innovation
Ontario Agri-Food Innovation Alliance
Supports agri-tech and food innovation projects focused on sustainability, productivity, and agricultural technology development.
Clean Technology and Environmental Innovation Programs
Supports cleantech startups working on emissions reduction, energy efficiency, and environmental sustainability solutions.
14. Indigenous and Community Economic Development
Indigenous Economic Development Fund (IEDF)
Provides grants and financing to Indigenous entrepreneurs and communities supporting business growth, diversification, and economic development initiatives.
Ontario’s funding landscape is not centralized into a single system. Instead, it operates as a network of programs across ministries, sectors, and economic development agencies.
For founders, success often comes down to mapping the right program to the right stage, then combining multiple funding streams across grants, tax credits, and ecosystem support.