Updated March 2026 · Verified against Investissement Québec guidelines
Equity Est. 2025
Program Provincial Active

IQ Fonds Impulsion (formerly Impulsion PME)

Investissement Québec
Maximum Funding
Varies (from $120M fund)
Ongoing — successor to Impulsion PME, launched October 2025
Visit Official Program →
Difficulty
Hard
Payment
Equity
Trend
Stable
First-Timers
Co-Funding
50%
IQ Fonds Impulsion (formerly Impulsion PME) provides up to Varies (from $120M fund) Québec's Fonds Impulsion (successor to Impulsion PME) is a $200 million quasi-equity fund co-investing alongside private investors in early-stage Quebec technology companies using convertible debt instruments such as SAFE and KISS notes, ranging from $250,000 to $2,000,000 per company. The program covers up to 50% of eligible costs. Applications are accepted on an ongoing basis. (As of March 2026, verified against Investissement Québec program guidelines)

Eligibility & Details

What this program funds and who can apply

Free

Program Description

Investissement Québec's Fonds Impulsion (successor to Impulsion PME) is a $200 million quasi-equity fund co-investing alongside private investors in early-stage Quebec technology companies using convertible debt instruments such as SAFE and KISS notes, ranging from $250,000 to $2,000,000 per company. IQ cannot exceed 50% of the total financing round and companies must be referred by a recognized incubator, accelerator, or sectoral research cluster — direct applications are not accepted.

Eligibility Requirements

  • Must be an innovative, early-stage technology company incorporated in Quebec
  • Must have high-growth potential (technology sector focus: software, digital, clean-tech)
  • Must be referred by a recognized incubator, accelerator, or sectoral research cluster (direct applications not accepted)
  • IQ investment cannot exceed 50% of the total financing round
  • Financing provided as convertible debt (SAFE/KISS notes), ranging $250,000–$2,000,000
Provinces
Quebec
Industries
Technology Innovation Software Digital Clean Technology
Business Stage
Startup Growth

Quick Assessment

Difficulty
Hard
Competition
High
Est. Hours
40h
First-Timer
Not rated

Funding Details

Amount
Varies (from $120M fund)
Type
Program
Level
Provincial
Co-Funding
Up to 50% of eligible costs
Deadline
Ongoing — successor to Impulsion PME, launched October 2025

Program Scorecard

Competition, effort, and approval at a glance

Hybrid
Competition
High
Effort
~40 hours
Approval
Moderate
Accessibility
--/5
Competition
--/5
Approval Rate
--%

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What You Need to Get Approved
Everything reviewers look for — so you apply with confidence, not guesswork

How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

Access is gated: you cannot apply to IQ Fonds Impulsion directly — you must be referred by a recognized incubator, accelerator, or sectoral research cluster (e. g., Centech, FounderFuel, District 3, Anges Québec, sectoral pôles). Joining a recognized ecosystem partner is the prerequisite. Once referred, co-investor quality matters as much as the amount — IQ favors co-investments alongside experienced angel networks or seed VCs over friends-and-family rounds. This is also patient capital with no monthly repayments (convertible notes convert at exit), but founders will give up a 5–20% equity stake.

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Rejection Pitfalls 9

  • Not referred by a recognized ecosystem partner — no direct application path exists
  • Co-investors are not recognized (friends-and-family only; no formal investor letters of intent)
  • Revenues exceed $2,000,000 cumulative over three years (over the stage threshold)
+6 more pitfalls

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Success Profile

Innovative Quebec-based technology company (software, hardware, biotech, cleantech, AI) at pre-seed or seed stage with: (1) minimum 2 full-time employees, (2) first customer or market validation agreement, (3) revenues under $2M cumulative, (4) previous VC fundraising under $250K, (5) enrollment in a recognized incubator or accelerator, and (6) identified co-investors willing to invest on identical terms. Regional (outside Montreal CMA) startups have a higher funding ceiling. Biopharmaceutical companies with pre-revenue R&D are specifically exempted from the 'first customer' requirement. Companies with experienced founding teams, proprietary technology, and clear defensibility tend to succeed.

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Evaluation Criteria

Team quality (expertise, commitment, coachability); market size ($500M+ TAM typically expected); technology differentiation and defensibility; market traction (customers, pilots, LOIs); co-investor quality and track record; growth plan credibility and financial projections

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Application Steps

1 Gain admission to a recognized IQ ecosystem partner Apply to and be accepted by a recognized Quebec incubator, accelerator, or sectoral research cluster (e.g., Centech, FounderFuel, District 3, Anges Québec). Each has its own application process. This is the prerequisite gate — direct applications to IQ are not accepted.
2 Secure a qualified co-investor Identify and confirm at least one private co-investor (angel, angel network, seed VC) willing to invest on the same terms as IQ. Obtain a written letter of intent specifying principal investment terms. Co-investor quality matters — institutional or experienced angels carry more weight than informal investors.
3 Partner prepares the investment file The referring incubator/accelerator prepares the formal IQ investment request on your behalf: support plan, due diligence form, letter of recommendation, evidence of market validation, financial statements, business plan, cap table, and co-investor LOIs. Plan 4–8 weeks for this phase.
+3 more steps

Required Documents 9

Investment request (prepared by referring support entity)
Support plan completed and approved by recognized incubator/accelerator/cluster
Letter(s) of intent from private co-investors stating principal investment terms
Due diligence form (IQ-specific)
Letter of recommendation from the referring entity
Evidence of at least one customer, partnership, or market validation agreement
Financial statements (current year + prior years if available)
Business plan with growth projections and investment deployment plan
Cap table and prior fundraising history

Eligible Expenses 1

  • Any business purpose consistent with the company's growth plan (product development, hiring, sales, marketing, working capital, IP protection) — this is an equity investment, not a grant with prescribed eligible expenses

Ineligible Expenses 1

  • No prescribed ineligible expenses — IQ holds standard investor rights as a noteholder, not a grant administrator. Companies outside program scope (non-innovative sectors, over revenue/VC thresholds) are ineligible for the fund itself.

Intake Periods

Ongoing rolling basis through recognized ecosystem partners. No annual intake calendar — files are referred and reviewed continuously. Selection committee meets on a rolling schedule.

Deadline Notes

Fonds Impulsion (successor to Impulsion PME) accepts applications on a rolling basis through recognized ecosystem partners. The original Impulsion PME program was suspended November 12, 2024, and replaced by Fonds Impulsion in October 2025. No annual intake deadline — continuous, competitive review by selection committee.

Open Application Portal →

Ineligible Organizations

  • Companies outside Quebec or with majority operations outside Quebec
  • Non-innovative businesses (retail, personal services, real estate, restaurants)
  • Companies with cumulative revenues over $2,000,000
  • Companies with prior VC financing over $250,000
  • Companies that have already completed an initial commercialization cycle
  • Non-referred companies (no direct application path exists)

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Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk

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Stacking amounts, clawback details, government stacking limits, and tax implications
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