📊 Ontario Technology Funding Overview
Ontario is Canada's largest technology hub, home to nearly 50% of the country's tech workforce and anchored by the Toronto-Waterloo Innovation Corridor, one of North America's fastest-growing tech ecosystems. Ontario tech companies have access to a powerful combination of provincial and federal funding programs that can cover 60-75% of R&D costs when properly stacked.
The funding landscape includes direct grants like IRAP (up to $1M), tax credits like SR&ED (35% federal) and OITC (8% provincial), and world-class accelerator programs at DMZ, MaRS, Communitech, and ventureLAB. The standard strategy for Ontario tech companies is to stack IRAP funding with SR&ED and OITC tax credits while leveraging regional accelerator support for mentorship and connections.
For large-scale projects, the Strategic Innovation Fund provides up to $50 million. Early-stage founders (18-39) can access Futurpreneur for $60K in financing plus mentorship. Northern Ontario companies benefit from the Invest North Program through FedNor with up to $5M in support.
Ontario's Technology Ecosystem: Canada's Innovation Capital
Ontario is the undisputed centre of Canada's technology sector, generating more than $80 billion in annual revenue and employing over 400,000 tech workers. The province's strength comes from a unique combination of world-class research universities, a deep talent pipeline, proximity to the US market, and a mature ecosystem of accelerators, venture capital firms, and multinational R&D centres.
Toronto-Waterloo Innovation Corridor
The 100-kilometre stretch between Toronto and Waterloo is the densest concentration of tech companies in Canada. Toronto has become North America's fastest-growing tech labour market, while Waterloo remains the birthplace of BlackBerry and home to Communitech, one of the country's leading innovation hubs. Companies along this corridor benefit from access to talent from the University of Toronto, University of Waterloo, Toronto Metropolitan University, and dozens of other institutions. Major tech employers including Google, Microsoft, Shopify, and Wealthsimple have significant Ontario operations.
Ottawa: Silicon Valley North
Ottawa's technology sector has deep roots in telecommunications, enterprise software, and cybersecurity, built on the legacy of Nortel Networks and the ongoing presence of companies like Nokia, Ciena, and Shopify. The city's Kanata North technology park is Canada's largest tech hub by area, with over 540 companies. Ottawa's strengths in government technology, defence, and satellite communications create unique opportunities for tech companies serving these sectors. Invest Ottawa provides dedicated acceleration programs for clean tech, health tech, and enterprise software.
Hamilton and Emerging Tech Hubs
Hamilton is emerging as a technology hub, driven by McMaster University's research strength, lower costs than Toronto, and programs like LiONS LAIR that support local tech startups. The Innovation Factory in Hamilton provides acceleration and funding connections. London, Kingston, and Sudbury are also developing specialized tech niches, supported by their local universities and FedNor/FedDev programs.
Ontario's Share of Canada's Tech Sector
- Ontario accounts for approximately 50% of all Canadian technology jobs and over 55% of tech sector revenue
- The province is home to more than 20,000 technology companies, from startups to multinationals
- Ontario universities produce over 40% of Canada's STEM graduates annually
- Venture capital investment in Ontario exceeded $8 billion in recent years, representing more than half of all Canadian VC activity
- The Ontario government has committed over $1 billion to innovation infrastructure including the Ontario Centre of Innovation and Regional Innovation Centres
Ontario Tech Funding at a Glance
Quick comparison of major funding programs available to Ontario tech companies
| Program | Max Amount | Type | Stage | Best For |
|---|---|---|---|---|
| IRAP | $1 million | Grant | Growth | R&D projects |
| SR&ED | 35%+ credit | Tax Credit | Any | Ongoing R&D |
| OITC | 8% credit | Tax Credit | Any | Ontario R&D |
| Strategic Innovation Fund | $50 million | Grant | Scale | Large projects |
| DMZ | In-kind support | Accelerator | Startup | Early-stage tech |
| ventureLAB | $100K+ | Accelerator | Startup | Hardware / software |
| CanExport | $50,000 | Grant | Growth | International expansion |
| Mitacs | $15K+/intern | Grant | Any | University-industry R&D |
Ontario-Specific Tech Programs
Provincial grants, tax credits, and accelerators exclusive to Ontario
Refundable tax credit for eligible R&D expenditures incurred in Ontario by qualifying corporations. Stacks on top of the federal SR&ED credit, allowing Ontario companies to recover up to 43% of their R&D costs through combined federal and provincial credits. Calculated on the first $3 million of qualified expenditures for CCPCs.
Provides substantial funding for life sciences companies scaling their operations in Ontario. Supports commercialization, manufacturing scale-up, and clinical trials for biotech, medtech, and pharmaceutical companies with demonstrated market traction and a clear path to growth in Ontario.
Supports R&D projects in life sciences, biotech, and medtech through the Ontario Centre of Innovation. Funds collaborative research between Ontario companies and academic institutions, focusing on projects with clear commercial potential in areas such as therapeutics, diagnostics, medical devices, and digital health.
Grants for Ontario manufacturers and technology companies expanding exports and international trade. Supports supply chain diversification, market access activities, and trade-readiness for Ontario businesses seeking to grow internationally. Particularly relevant for tech companies targeting US and European markets.
Supports technology, manufacturing, and tourism businesses in Northern Ontario through substantial funding for innovation, economic development, and community infrastructure. Tech companies in Sudbury, Thunder Bay, Sault Ste. Marie, and other Northern Ontario communities can access up to $5 million for growth projects.
Canada's #1 university-based incubator and ranked among the world's top five. Located in downtown Toronto, DMZ provides workspace, mentorship from industry experts, access to funding networks, and connection to enterprise customers. Programs include the flagship Incubator, a Pre-Incubator, and specialized tracks for social ventures and women-led companies.
Waterloo Region's premier tech hub offering Peer2Peer, Founder Programs, and corporate innovation services. Communitech supports over 1,400 companies with mentorship, talent acquisition, market access, and connections to investors. Programs range from early-stage founder support to scale-up acceleration for growth-stage companies.
Hardware and software acceleration program in York Region, north of Toronto. ventureLAB's Hardware Catalyst Initiative provides up to $100,000 in funding plus access to a prototyping lab, semiconductor expertise, and enterprise connections. Programs also support software startups with mentorship, market validation, and investor readiness.
Dedicated acceleration programs in Ottawa for clean technology, health technology, and enterprise software companies. Invest Ottawa provides tailored support including mentorship, market access, investment readiness, and connection to the federal government as a customer. Programs leverage Ottawa's strengths in telecom, cybersecurity, and defence technology.
One of the world's largest urban innovation hubs, located in downtown Toronto. MaRS supports companies in health, cleantech, fintech, and enterprise software through acceleration programs, investment connections, market intelligence, and corporate partnerships. MaRS-supported companies have collectively raised billions in investment capital.
Digital transformation grants for small businesses to establish or enhance their online presence. The ShopHERE powered by Google program provides free e-commerce website development, while the Digital Transformation Grant provides $2,500 for digital tools, training, and technology adoption. Ideal for small tech service businesses and digital agencies.
Municipal grants for Toronto tech and creative businesses, supporting programs and events that foster entrepreneurship in film, music, interactive media, and creative technology sectors. Covers grants, sponsorships, and project funding for organizations and initiatives advancing Toronto's creative economy.
Hamilton-area pitch competition offering approximately $30,000 in cash prizes and in-kind services for tech startups. Entrepreneurs pitch to a panel of local investors and business leaders. Winners receive funding plus connections to mentors, potential investors, and the Hamilton tech community. An excellent launchpad for Hamilton-area tech startups.
Federal Programs Available to Ontario
National funding programs accessible to all Ontario tech companies
The gold standard for Canadian tech company funding. IRAP provides advisory services and non-repayable contributions to help SMEs increase innovation capacity and bring ideas to market. Covers salaries, contractor costs, and project materials for R&D. Ontario has IRAP advisors in Toronto, Ottawa, Waterloo, Hamilton, and other major centres. This is the first program every Ontario tech company should apply to.
Canada's largest R&D tax incentive program. Canadian-controlled private corporations (CCPCs) earn a 35% refundable investment tax credit on the first $3 million of eligible R&D expenditures. Combined with Ontario's OITC (8%), Ontario tech companies can recover up to 43% of their R&D costs. Covers salaries, materials, subcontractor costs, and overhead. Non-competitive: if you qualify, you receive the credit.
Supports large-scale, transformative projects that help grow Canada's economy. Targets R&D, commercialization, technology demonstration, and facility expansion. Best suited for established Ontario tech companies undertaking significant growth projects. Requires substantial company co-investment but provides the largest available funding amounts.
Connects Canadian tech entrepreneurs with federal departments and agencies seeking innovative solutions to real challenges. Provides funding for proof of concept ($150K) and prototype development ($1M). Ontario companies benefit from proximity to the federal government in Ottawa, creating strong B2G (business-to-government) opportunities.
Helps Ontario tech companies pursue international export opportunities. Covers trade show attendance, market research, business development trips, legal fees, and marketing adaptation for global markets. Non-repayable contribution covering up to 50% of eligible costs. Essential for SaaS companies and tech firms targeting US, European, or Asian markets.
Provides up to $15,000 in grant funding for developing a digital adoption plan plus access to a $100,000 interest-free BDC loan for implementing digital technologies. Covers e-commerce platforms, CRM systems, ERP software, cybersecurity tools, and other digital transformation initiatives. Available to Ontario businesses with 1-499 employees.
Funds university-industry R&D collaboration by placing graduate students and postdoctoral fellows in Ontario tech companies. Each internship unit provides $15,000 in funding (split between Mitacs and the company). Ontario companies can access talent from U of T, Waterloo, McMaster, Ottawa, and other research universities. An excellent way to access affordable R&D talent while building relationships with academic institutions.
Financing and mentorship for tech entrepreneurs aged 18-39. Provides up to $60,000 in startup financing (combination of Futurpreneur loan and BDC loan) plus two years of mentorship from an experienced business leader. Includes dedicated programs for Black entrepreneurs and Indigenous entrepreneurs. Strong presence in Ontario with mentors across the GTA, Ottawa, and Waterloo.
The Business Development Bank of Canada provides free and subsidized business advisory services tailored for tech companies. Services include strategic planning, operational improvement, market expansion advisory, financial management, and technology adoption guidance. BDC also offers venture capital and growth equity investments for high-potential Ontario tech companies.
How to Access Ontario Technology Funding
Identify your stage and funding needs
Determine whether your company is pre-revenue, growth-stage, or scaling. Pre-revenue startups should focus on accelerators (DMZ, Communitech, MaRS) and Futurpreneur. Growth-stage companies benefit most from IRAP and SR&ED. Scale-up companies can target the Strategic Innovation Fund. Map your R&D activities, hiring plans, and market expansion goals to the right programs.
Apply to IRAP if doing any R&D
IRAP is the gateway program for Ontario tech companies. Contact the NRC to be assigned an Industrial Technology Advisor (ITA) who will assess your project. There is no formal application form; the process starts with a conversation. Your ITA becomes a long-term strategic advisor who can connect you to other funding programs and industry resources. IRAP provides up to $1 million in non-repayable contributions.
Claim SR&ED + OITC on your R&D expenditures
These tax credits are non-competitive and almost automatic if you are conducting legitimate R&D. File your SR&ED claim (T661 form) with your annual corporate tax return. Ontario companies automatically qualify for OITC on the same expenditures. Combined, you can recover up to 43% of eligible R&D costs. Track employee hours, materials, and subcontractor costs throughout the year for clean documentation.
Join a regional accelerator matching your location and sector
Toronto: DMZ (all tech) or MaRS (health, cleantech, fintech). Waterloo: Communitech. York Region: ventureLAB (hardware/software). Ottawa: Invest Ottawa (cleantech, healthtech). Hamilton: Innovation Factory. Each provides mentorship, workspace, connections, and varying levels of funding or in-kind support valued at $50K-$500K.
Explore CanExport and trade programs once you have international traction
When you have a product with international potential, apply for CanExport SMEs to receive up to $50,000 for market expansion activities. Ontario's proximity to the US market is a major advantage. Trade missions organized by the Ontario government provide subsidized access to international markets. Combine with the Ontario Together Trade Fund for additional provincial support.
Stack: IRAP + SR&ED + OITC + accelerator is the standard Ontario tech combo
The most successful Ontario tech companies stack multiple programs simultaneously. The standard combination is: IRAP grant (up to $1M) + SR&ED federal credits (35%) + OITC provincial credits (8%) + regional accelerator support. Add Mitacs for university collaborations and CanExport for international expansion. Total government funding typically cannot exceed 75% of eligible project costs across all programs.
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Start Grant Matching →Frequently Asked Questions About Ontario Technology Grants
For early-stage tech startups in Ontario, IRAP (Industrial Research Assistance Program) is widely considered the best starting point. It provides up to $1 million in non-repayable funding for R&D projects, plus free advisory services from a dedicated Industrial Technology Advisor. Startups can also join accelerators like DMZ (Toronto), Communitech (Waterloo), ventureLAB (York Region), or MaRS for mentorship and in-kind support. For founders aged 18-39, Futurpreneur offers up to $60,000 in financing plus mentorship.
Yes, you can and should claim both the federal SR&ED tax credit and the Ontario Innovation Tax Credit (OITC) on the same eligible R&D expenditures. SR&ED provides up to 35% refundable credit for CCPCs on the first $3 million in qualifying expenditures. OITC adds an additional 8% refundable credit on eligible Ontario R&D spending. Combined, Ontario companies can recover up to 43% of their R&D costs through these two programs alone. Both are non-competitive: if your work qualifies as R&D, you receive the credits.
To apply for IRAP in Ontario, contact the National Research Council's regional office to be connected with an Industrial Technology Advisor (ITA). Your ITA will assess your company's innovation potential, technical capabilities, and project feasibility. You must be a Canadian SME with 500 or fewer employees. The process typically takes 2-3 months. Ontario has IRAP advisors in Toronto, Ottawa, Waterloo, Hamilton, and other major tech hubs. There is no formal application form - the process begins with a conversation with your assigned ITA.
The Toronto-Waterloo Innovation Corridor offers world-class accelerators: DMZ at Toronto Metropolitan University (Canada's #1 university-based incubator), MaRS Discovery District (health, cleantech, fintech, enterprise), Communitech in Waterloo (Peer2Peer and Founder Programs), ventureLAB in York Region (hardware and software), and Creative Destruction Lab at University of Toronto. Each offers mentorship, networking, workspace, and varying levels of funding or in-kind support. Hamilton has LiONS LAIR for pitch competitions, and Ottawa has Invest Ottawa for cleantech and healthtech.
Yes, SaaS companies are eligible for most Ontario technology grants. IRAP funds software R&D projects including SaaS development. SR&ED and OITC tax credits cover eligible R&D activities including developing new software features, improving algorithms, and solving technological uncertainties. SaaS companies can join accelerators like DMZ, Communitech, and MaRS. For export-ready SaaS, CanExport provides up to $50,000 for international market expansion. Digital Main Street offers $2,500 grants for digital transformation.
IRAP targets SMEs (under 500 employees) with grants up to $1 million for R&D projects, plus dedicated advisory support. It is the most accessible federal innovation program and the recommended starting point. The Strategic Innovation Fund (SIF) targets larger, transformative projects with funding up to $50 million, requiring significant company co-investment. SIF is best for established companies undertaking large-scale R&D, commercialization, or facility expansion. Most Ontario tech companies should start with IRAP and consider SIF once they reach growth or scale-up stage.
Yes, stacking is the standard strategy. The most common Ontario tech combination is: IRAP grant (up to $1M) + SR&ED federal credit (35%) + OITC provincial credit (8%) on the same R&D project. You can layer in accelerator support (DMZ, MaRS, Communitech), CanExport for international expansion, Mitacs for university collaborations, and Digital Main Street for digital transformation. The key rule is that total government funding typically cannot exceed 75% of eligible project costs across all programs combined.
For SR&ED and OITC claims in Ontario, you need: (1) Technical documentation describing the technological uncertainty, systematic investigation, and advancement achieved; (2) Project timesheets tracking hours spent on eligible R&D activities; (3) Financial records of eligible expenditures including salaries, materials, and subcontractor costs; (4) Contracts with third-party researchers or subcontractors; (5) T661 form filed with your corporate tax return. Best practice is to maintain contemporaneous documentation throughout the year rather than reconstructing records at filing time.
Need Help With Your Ontario Tech Grant Application?
Grant applications for programs like IRAP and SR&ED can be complex. Professional grant writers who specialize in technology programs can significantly increase your approval chances and maximize your claim amounts.
Grant writers typically charge $200-800 depending on complexity. SR&ED consultants often work on a percentage of the claim.