Open Innovation Subsidy Program for start-up companies

Last updated October 14, 2021
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The Open Innovation Subsidy Program for start-up companies encourages start-ups to collaborate with established organizations in the city. This financial incentive is geared to innovative projects that will have an impact on Montréal’s transformation towards sustainability.

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Description

The Open Innovation Subsidy Program promotes collaboration between a start-up company and a partner organization with the objective of stimulating the commercialization of innovation:

  • Addresses an urban or ecological transition issue 
  • Promotes a greener economy 
  • Helps improve quality of life

 

The start-up thus benefits from working with a first client as well as from technical and financial support and a broader business network. The partner organization, for its part, benefits from greater agility and access to innovative solutions.

Eligibility

In order to be eligible, the start-up company and partner organization must meet all the following conditions:

  • Be in the start-up phase or in operation for fewer than five years
  • Have a team of at least two people working full-time
  • Post annual sales equal to or lower than $2 million
  • If the company is a joint-stock company, its capital stock must primarily be held by Canadian citizens, permanent residents or holders of a Certificat de sélection au Québec. Social economy companies (co-ops or non-profits) are also eligible.
  • Must have an establishment within the limits of the agglomeration of Montréal
  • Must be a legal person established in the public interest or for a private interest with more than 50 employees, or be a non-profit legal person the majority of whose members are companies in the same activity sector that have a mission to defend and promote the interests of these members

In order to receive financing, the project must: 

  • Be implemented over a maximum period of eight months.
  • Be in one of the following activity sectors:
    • biofood and access to food
    • entertainment and tourism
    • logistics and intelligent mobility
    • medical technologies and community health
    • clean technologies and green energy, including energy optimization and the circular economy
    • commercial vitality of neighbourhoods and quality of life of residents
  • Be aimed at commercializing a new solution or product by carrying out: 
    • proof of concept and feasibility demonstration through product testing in real-life situations
    • technology validation
    • precommercial demonstration or validation of target markets 
    • first sales
  • Not have received a separate subsidy from the city

Financial assistance

The maximum amount of the subsidy is equal to 50 per cent of the actual cost of the project and cannot exceed $50,000. The financing package must include a contribution from the partner organization representing a minimum cash amount of 10 per cent of the costs.  

The start-up must remain the owner of all rights associated with adaptations, changes or developments made to the innovative product during the project implementation period.

The city may request the reimbursement of the subsidy in full or in part if, in the year following the end of the project, the start-up: 

  • Moves its head offices or main business establishment outside of Québec.
  • Is acquired by another company or sells the rights to the innovative product to a third party.

The expenses must be incurred after the date on which the subsidy application was deemed admissible by the city and must relate to the following activities: 

  • Remuneration of temporary or permanent staff, based on market conditions
  • Professional fees, such as legal assistance, research done by a researcher from a recognized institution, accounting services, services aimed at software or data processing development
  • Purchase of equipment and supplies
  • Equipment rental fees
  • Licencing or certification fees
  • The first instalment must be equivalent to 60 per cent of the maximum estimated amount of the subsidy.
  • The balance of the subsidy is payable after receipt of the accountability documents.

At the end of the project, the following documents must be transmitted to the city:

  • Completed accountability form (in French)
  • Invoices, record of wages and any other item detailing the real cost of the open innovation project
  • Proof of payment, other than in cash, of admissible expenses incurred by the open innovation project, notably a copy of the cashed cheque, a copy of the bank draft, a bank account statement or a credit card statement
  • Proof of payment, other than in cash, of the partner organization’s contribution and of its collection, excluding a receipt, annotated invoice or acquittance
  • Verifiable proof of any contribution of services, if applicable

Submit an application

In order to benefit from this program, the applicant must provide the following documents: 

  • Completed application form (in French)
  • Board of directors’ resolution authorizing the submission of the application, or document establishing power of attorney held by any person acting on its behalf, if applicable
  • Curriculum vitae of each member of the management or their online link
  • Signed financial statements from the most recently completed financial year
  • Summary presenting the innovative product targeted by the project, its innovative character and its commercial viability
  • Estimate of the innovative product’s sales potential in the target market over three financial years
  • Business plan or any other document summarizing the business model and commercialization strategy

All documents must be sent by email to [email protected]

Review of applications

The start-up company will be informed of the decision concerning its eligibility and the maximum amount of the subsidy within 30 business days of the receipt of its application.

Application review criteria:

  • Growth potential of the start-up and capacity to successfully complete the open innovation project
  • Quality of the project and of the collaboration between the start-up company and the partner organization
  • Scope and financial benefits of the project

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