ISC Challenge Stream (Innovative Solutions Canada)
Compared with the 242 other application forms we have read
- Scored mainly on your track record and who is on your team. 18 lead with that.
- Publishes the score sheet reviewers actually use. Only 30 do.
- The work here is mostly writing long answers. For 59%, the job is assembling documents instead.
Can you win this grant?
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Who actually receives this funding
9 businesses received this funding in 2025 — 130 awards since 2018. Typical award: $200K. Half of all awards fall between $150K and $995K. 99% of recipients are for-profit businesses. Top sectors among classified recipients: Computer systems design services, Automatic environment control mfg, Communications equipment. Top provinces: Ontario 43% · Quebec 24% · British Columbia 15%. Covers: ISC Challenge Stream (Phase 1 + Phase 2 across ISED, NRC, AAFC) — same disclosure population as catalogId 8; Challenge Stream not separable from Testing Stream at the prog_name_en level. Source: Government of Canada proactive disclosure data · Contains information licensed under the Open Government Licence – Canada · Data through Q4 2026.
The typical ISC Challenge Stream award is $200K — the median of 130 awards since 2018. In 2025, 9 businesses were funded; 99% were for-profit companies.
Named recipients
Recent recipients of the ISC Challenge Stream include Volta Energy Inc (Scarborough, ON, 2026), Alfapur Technologies Inc. (Sainte Catherine, QC, 2026) and TerraFixing Inc. (Ottawa, ON, 2026).
- 2026Volta Energy Inc
- 2026Alfapur Technologies Inc.
- 2026TerraFixing Inc.
- 2026VEI Contracting
- 2025Chalumeau
- 2025Dark Matter Materials Inc.
- 2025Saltworks
- 2025Trium Environmental Inc.
- 2025Facca Inc.
- 2024Ekstera Inc.
Show 23 more recipients
- 2024Qubic Inc.
- 2024aiRadar Inc.
- 2024Irreversible Inc.
- 2024Plascon Plastics Corporation
- 2024Kinova Inc.
- 2024Exonetik Inc.
- 2024E.O.I Technologies
- 20231QBit
- 20235REDO
- 2023Response Biomedical Corporation
- 2023PharmaPlanter Technologies Inc
- 2022One Lightwave Mfg.
- 2022E.O.I. Technologies Inc.
- 2022Roswell
- 2022Sanozone Technologies Incorporated
- 2021LuminUltra Technologies Ltd.
- 2021Mode40 Ltd
- 2021Analytika
- 2021Cole Webber Productions, Inc.
- 2021Roswell Downhole Technologies Inc
- 2021Precision ADM Inc.
- 2020Precision Al Inc.
- 2019Titan Clean Energy Projects Corp.
Source: Government of Canada proactive disclosure
Eligibility & Details
What this program funds and who can apply
Program Description
Federal departments post R&D challenges; eligible Canadian SMEs submit Phase 1 feasibility proposals (up to $150,000, TRL 1–4). Phase 2 prototype contracts (up to $1,000,000, TRL 5–9) awarded to successful Phase 1 companies. 100% funded, no matching required.
Eligibility Requirements
- For-profit entity incorporated in Canada (not-for-profits and cooperatives ineligible)
- Fewer than 500 full-time equivalent employees
- 50%+ of annual wages allocated to Canada-based workers
- 50%+ of FTE employees with Canada as principal workplace
- 50%+ of senior executives with Canada as principal residence
- R&D conducted within Canada
- Innovation at TRL 1–4 for Phase 1 (feasibility); TRL 5–9 for Phase 2 (prototype)
- Must respond to a specific open government challenge posted on ISC website. At least 2/3 of Phase 1 R&D and at least 1/2 of Phase 2 R&D must be performed by the applicant; the remainder may be subcontracted, and subcontractors need not meet program eligibility.
- The 499-FTE limit is counted across all affiliated businesses worldwide, including a parent company and sister subsidiaries — a small Canadian subsidiary of a large foreign group does not qualify.
Quick Assessment
Funding Details
- Amount
- Phase 1: up to $150,000 (some up to $300,000); Phase 2: up to $1,000,000 (DND challenges up to $2,000,000)
- Type
- Grant
- Level
- Federal
- Co-Funding
- Up to 100% of eligible costs
- Deadline
- Challenge-specific — subscribe to ISC newsletter and monitor ised-isde.canada.ca/site/innovative-solutions-canada/en for open calls
Program Scorecard
Competition, effort, and approval at a glance
Moderate — standard application process
Moderate competition — prepare a strong application
Complex — detailed documentation needed
How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe single most important success factor is directly addressing EVERY Essential Outcome listed in the challenge notice — evaluators cannot infer anything not explicitly stated.
Rejection Pitfalls 9
- Failing to address ALL Essential Outcomes in the challenge notice (mandatory pass/fail — automatic rejection)
Success Profile
Evaluation Criteria
How ISC Challenge Stream (Innovative Solutions... judges your application
What the reviewer scores, what gets applications rejected, and what to write.
Distilled from 6+ source documents on ised-isde.canada.ca, condensed into one brief. Sources as of 2026-09-04.
6 of the sources
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What ISC Challenge Stream (Innovative Solutions... favours
Solution in scope and addresses all Essential Outcomes◦
“Pass: The proposed solution is within the scope for the challenge, and clearly addresses all Essential Outcomes identified in the Challenge.”
The form
Eligibility screen
- 1Eligibility criteria (self-screen before the form)checkboxes
Phase 2 questions
- 1 aQuestion 1 a: Phase 2 Scopewritten answer
Describe the proposed innovation and demonstrate how it responds to the challenge. Include in your description the scientific and technological basis upon which the solution is proposed and clearly demonstrate how the solution meets all of the Essential Outcomes in the Desired Outcomes section in the Challenge Notice.
- 2Question 2: Proof of Feasibility and Current Technology Readiness Level (TRL)selection + written
Indicate the current TRL of the proposed solution. (Drop Down Menu of the Challenge Stream Submission Form); Describe the research and development activities that have taken place to prove the solution's feasibility and bring the proposed solution to the stated TRL.
- 3 aQuestion 3a: Innovationwritten answer
- 3 bQuestion 3b: Advance on State of the Artwritten answer
- 1 bQuestion 1b: Scope (Additional Outcomes)written answer
- 4Question 4: Phase 2 Science and Technology Riskswritten answer
- 5Question 5: Phase 2 Project Riskswritten answer
- 6Question 6: Phase 2 Project Plantable
- 7Question 7: Phase 2 Implementation Teamtable
- 8Question 8: Inclusivitywritten answer
- 9Question 9: Phase 2 Financial Controls, Tracking and Oversightwritten answer
- 10Question 10: Commercialization Strategywritten answer
ISC Challenge Stream (Innovative Solutions... states no length limits for these answers.
Judged against
ISC Challenge Stream (Innovative Solutions... publishes its score sheet. in Premium
- 1
Does the solution fit this challenge and clear the gates?
Show them Copy the challenge's Essential Outcomes verbatim and tie each one to the science, the architecture and test data, and state your current TRL with the R&D that produced it.◦
In the funder’s words · 3
- Pass: The proposed solution is within the scope for the challenge, and clearly addresses all Essential Outcomes identified in the Challenge.
- Pass: The Applicant (offeror) has demonstrated that the proposed solution is currently between TRL 5 to 9 (inclusive), and provided justification by explaining the research and development (R&D) that has taken place to bring the solution to the stated TRL, proving the solution's feasibility.
- Pass: The proposed solution meets one or more of the ISC definitions of innovation.
- 2
Is it genuinely new, not just the next release?
What to show, and the funder’s 2 criteria behind it in Premium
- 3
Can they deliver within the notice's limits?
What to show, and the funder’s 4 criteria behind it in Premium
- 4
Will it sell after Phase 2?
What to show, and the funder’s 3 criteria behind it in Premium
Where applicants fail
“The proposed solution is poorly described and does not permit concrete analysis.”
“The proposed solution is an incremental improvement, "good engineering", or a technology that would go ahead in the normal course of product development (i.e. the next version or release).”
Premium · the rest of this brief
See all 12 rules that can reject you and every criterion you are judged on. Then we draft your application for you.
10 more rules that can reject you · 9 more criteria · 11 more prompts
Do you pass?
Each one can rule you out. Tick the ones you meet.
Your business
499 or fewer FTE employees
Small and medium sized business with 499 or fewer full-time equivalent (FTE) employees
Half of payroll paid in Canada
50% or more of its annual wages, salaries and fees are currently paid to employees and contractors who spend the majority of their time working in Canada
1 thing this funder says you do NOT need, in Premium.
Documents to attach
Ticks are kept on this device.
The money
MINERVA-UGS ceiling$500,000.00 CAD
Maximum funding: $500,000.00 CAD
Infrared Quantum ceiling$1,500,000.00 CAD
Maximum funding: $1,500,000.00 CAD
Your shareUp to 100% of eligible costs
Total Canadian government assistance for all projects, including federal, provincial/territorial and municipal, must not exceed 100 % of eligible costs funded. In no instances will the total Canadian government assistance be allowed to exceed the total of eligible costs.
StackingDisclose all government assistance before approval
Funding Recipients are required to inform Canada of any government (federal, provincial, territorial, municipal) financial assistance they have requested and/or received towards the Eligible Activities prior to Canada approving an ISC grant.
Costs before approvalRetroactive costs up to 20% eligible costs
On a case-by-case basis, Canada may consider supporting the inclusion of eligible costs a recipient incurred prior to the signing of the funding agreement but not earlier than the date on which a proposal has been submitted. Retroactively eligible costs must not exceed 20 % of total eligible costs. Canada will not be obliged to pay incurred costs in the event an application is rejected.
What it pays for · 1
- contractor's fees and sub-contracts (not to exceed one-third (1/3) of total eligible project costs for a Phase 1 and half (1/2) for a Phase 2
What it does not pay for · 1
- Lobbyist fees
From application to money
- Pick your challengeConfirm eligibility and self-assess TRL
- Submit in the portalSubmit by listed 14:00 ET deadlines
- Pass/fail then scoringMandatory pass, then 65 of 130
- Sign the funding agreementSign funding agreement before costs eligible
- Progress reportsProgress reports during project
In the funder’s words · 5
- Pick your challenge
- Read the notice's Funding mechanism line, confirm the eligibility criteria and self-assess against the ISC TRL scale to learn which phase you may enter.
- Submit in the portal
- Complete the Challenge Stream Submission Form in the portal before the closing time, which is stated on the notice to the minute in Eastern time. (2026-09-10, 09-15, 09-21, 09-21, 09-24 and 10-05, all at 14:00 ET)
- Pass/fail then scoring
- Part 1's mandatory criteria must all be passed before Part 2's points are read, and 65 of 130 is the overall pass mark.
- Sign the funding agreement
- Furthermore, even if an applicant (offeror) is advised that their project has been approved and the applicant (offeror) starts incurring costs, no costs are eligible for reimbursement unless a funding agreement is ultimately signed between the applicant (offeror) and Canada.
- Progress reports
- You report progress during the project so the program can review the R&D accomplished to date.
Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.
Everything you need to win ISC Challenge Stream (Innovative Solutions...
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 9 rejection pitfalls reviewers flag — so you catch them first
- 14-document checklist with what each reviewer is actually checking
- Your Application Game Plan — the print-ready PDF the preview below describes
- 7-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 4-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what reviewers score on
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 14
Eligible Expenses 6
Ineligible Expenses 6
Intake Periods
Deadline Notes
Ineligible Organizations
- 6 more application steps
- 12 more required documents
- 6 eligible expenses
- 6 ineligible expenses
- Intake periods
- Deadline notes
- Ineligible organizations
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskHow ISC Challenge Stream (Innovative Solutions... Compares
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Frequently Asked Questions
Quick answers to the questions founders most often ask about ISC Challenge Stream (Innovative Solutions...