IP protection can seem costly and feel out of reach for many Canadian startups. Rest assured, government funding and grants may be available to fund your IP. These grants can range from $18,000 to upwards of $100,000. A co-payment by your company may be required for some grants, ranging from 20%-50%. And, with the recently announced federal budget, we’ve seen a continued commitment to investing in innovation through several funding programs by the Canadian government.
The grant programs can cover IP filings and beyond, and often provide IP mentorship, education, IP strategy and searches. Taking advantage of the programs can allow for strategic decisions to be made prior to significant IP expenditures.
The main grant programs that fund IP for Ontario-based Canadian startup companies are listed below, with other provincial programs being available in other provinces. This article explores the details of these programs as currently known, though they may change from time to time. Consult each program’s official website for the latest updates.
Best practices to start your funding journey
Incorporation of your company is required for all grant programs and is likely the first step you’ll take in your funding journey. Companies must also be a Canadian-controlled private corporation (CCPC). Most funding sources are only available to corporations of a certain size, revenue, or age.
It is recommended to initially contact the grant officer of the program to verify that funding is still available. In some cases, grants may be officially advertised, although the funding reserves have already been depleted. The grant officer may also be able to guide you through the application process, best practices, and initial threshold requirements of the program. The funding budget typically resets every April 1, in accordance with the government’s fiscal year.
IP grants are different from tax credits, such as the Scientific Research and Experimental Development (SR&ED) tax credit in Canada. Professional advice should be consulted regarding piggybacking, overlapping and diversifying of the various grants and tax credits.
Updates from the federal budget
On November 4, the Canadian government announced renewed funding to extend several IP funding programs. Specifically:
- $84.4 million over four years, starting in 2026-2027 to extend the Elevate IP program
- $25.5 million over three years, starting in 2026-2027 to renew support for the Innovation Asset Collective’s Patent Collective
- $75 million over three years, starting in 2026-2027 to extend the IP Assist program
While full details are not yet known on these new funding initiatives, we will be watching closely for details to emerge and invite you to stay tuned for further updates. The remainder of the article focuses on programs we work regularly with when advising our startup clients in the intellectual property space.
1. IRAP IP Assist Funding (Federal)
IP Assist, from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) provides support to firms regarding IP education, strategy and execution. The process starts with obtaining an IRAP advisor at 1-877-994-4727.
The funding typically requires $100,000 remitted revenue declared in Canada, and at least 2 full-time employees (FTE) who remit taxes in Canada.
Funding:
- Level 1: IP education - $1,000 ($500 co-pay)
- Level 2: IP strategy - $18,000 ($500 co-pay)
- Level 3: IP execution - Up to $33,000 (co-pay 25%)
The IP execution relates to IP strategy, agreement, audits, and analysis, and is not intended to cover the costs for the drafting and prosecution of patents and trademarks. However, please check with your IRAP advisor as there may be other available IRAP programs.
2. IPON (Ontario)
Intellectual Property Ontario (IPON) provides IP education, funding and support to help Ontario businesses and researchers innovate and grow. Applications are made through the web portal. Other provincial programs are available in other provinces.
IP funding of up to $100,000 per year, with a lifetime cap of $300,000 may be available. IPON covers up to 80% of eligible costs for forward-looking work. Clients are required to pay at least 20% of eligible services/disbursements and all applicable taxes (HST).
Eligible Sectors for IPON include:
- artificial Intelligence & data-driven technologies
- vehicle technology
- medical technology
Supporting technologies in other sectors that have market or technical applications to the above sectors may also be selected as IPON Clients, such as mining technology and advanced manufacturing.
3. ElevateIP
As mentioned above, a renewed commitment to fund ElevateIP has been made by the federal government, as recently announced in the 2025 budget. While details are not yet available, we recommend checking ElevateIP’s website for the latest updates.
4. CanExport (Federal)
The CanExport programs focus on exploring new business opportunities abroad, connecting with international research and development (R&D) partners, and attracting foreign investment. Many of the CanExport programs fund both IP and non-IP export activities. Applications are made through the web portal.
CanExport provides funding by way of CanExport Innovation and CanExport SMEs. At the time of publication, CanExport funding is NOT available.
4a. CanExport Innovation
Innovators from Canadian organizations may access up to $75,000 in CanExport Innovation funding from Canada’s Trade Commissioner Service to assist with research and development (R&D) for a single technology. The grant covered up to 75% of costs for foreign IP, including pursuing and signing collaborative R&D agreements with international partners.
The program is no longer accepting applications.
4b. CanExport SMEs
The CanExport SMEs program from Canada's Trade Commissioner Service is designed to encourage small and medium-sized enterprises (SMEs) to export Canadian goods and services to new international markets. Successful applicants may receive up to $50,000 to support foreign IP and eligible market development activities in foreign countries. The grant covers up to 50% of the costs. The applicant must have declared between $100,000 and $100 million in annual revenue in Canada during its last complete tax reporting year, and at least 1 Full-Time Employee (FTE) who remits taxes in Canada.
The program is currently not accepting applications but may re-open.
We look forward to assisting you in your IP journey. Please contact us should you have any further questions regarding IP grant funding.
The preceding is intended as a timely update on Canadian intellectual property and technology law. The content is informational only and does not constitute legal or professional advice. To obtain such advice, please communicate with our offices directly.