The Health Technology Exchange (HTX) supports both emerging and established Ontario-based companies to develop, produce, and commercialize innovative market-leading Medical and Assistive Technologies (MATs). They offer support services and government funding for small business, providing organizations with consulting personnel in areas related to regulatory affairs, clinical evaluations, marketing, marketing intelligence, and grant funding for business. The business funding grants offered by HTX include:
- Innovation and Development Program (IDE)
- Technology Acceleration Program (TAP)
- Technology Implementation Program (TIP), and
- Ontario Flagship Program (OFP)
Although the HTX is not currently accepting applications for IDP, TIP, or TAP, applications are open for the Ontario Flagship Program.
Ontario Flagship Program(OFP) Business Funding Grant
In an effort to give support Ontario-based MNEs and allow them to realize a competitive advantage the HTX offers research and development funding. Qualifying applicants can receive $1.5 to $15 million (up to 15% of project cost) over a 5-year period to support advanced stage product development programs.
Eligible Applicant Criteria and Expenses for OFP
Ontario-based MNEs (or a newly created MNE subsidiary in Ontario) operating in the Medtech sector are encouraged to apply. Applicants must be able to demonstrate their ability to provide their portion of the project funding (either through cash and/or in-kind contributions). Eligible partner organizations can include MNE/SMEs, healthcare providers, publicly funded commercialization organizations or research institutions and must add a complementary asset that is essential for project success. Applicants and their eligible partner organizations can receive funding for the following expenses:
- Salaries and benefits
- R&D expenses (including materials)
- Commercialization and regulatory costs
- Other costs related to the project at HTXs discretion
It is possible that funding can cover capital equipment, but not likely. The applicant would have to thoroughly demonstrate how the capital expense relates to applied research and commercialization. The HTX warns that capital equipment costs be minimalized in the funding request as financial support is intended for support salaries and/or benefits of project personnel.
Ontario Flagship Program (OFP) Funding Vehicles
There are three vehicles available and their mechanism depends on the specific program, the applicant, and due diligence. Their goal is to use the funds recovered from previous applicants to fund their future applicant’s projects; thus, this is their preferred funding vehicle. Specifics in terms of repayment term are determined on a case-by-case basis. An overview of the three funding options is below:
1. Performance-Based Loans
- Paid out quarterly (according to approved budget and quarterly reports).
- Repayment based on commercial revenues of the HTCP supported technology.
- Repayment is expected as soon as possible (without compromising project success).
- Will be used when HTCP funding supports a seed financing for new start-ups. It is expected these organizations have other financing partners (Eg. Angels, VC, etc.).
- All financing partners and the company will agree that convertible debentures are the most appropriate.
- Used when MNE projects guarantee timely and substantial job creation and retention.
- Quarterly reimbursement for qualifying project expenses will be based on the achievement of project and job creation milestones.
2. Convertible Debentures
3. Performance based grants.
HTX Ontario Flagship Program (OFP) Application Process
There is a two-step process to apply:
- Expression of Interest
- Applicants offer a preliminary description of the proposed project and a budget summary
- These documents should highlight your partner organizations, the potential commercialization and economic impact
- Full Application
- Will be forwarded to the organization provided their Expression of Interest was deemed appropriate by the reviewing committee
Tips to Improve Your OFP Funding Application
In order to properly position your application to ensure that your project meets HTX standards consider the following when preparing your application:
- Preference is given to Ontario-based partners
- Ensure your project objectives correspond with those of the HTCP
- Clearly demonstrate the economic impact of your project in Ontario (ie. Job creation and the commercial opportunity of the project)
- Ensure you have the financial and managerial resources required
- Funding is intended to primarily provide support salaries for project personnel the review committee monitors this carefully to ensure there is not a disproportionate amount spent on capital equipment
More Information on HTX Government Funding for Small Business
For more details on this program please choose from one of the following options:
Other Funding Opportunities
Organizations interested in the Ontario Flagship Program should also consider leveraging this opportunity with other Canadian government grants. Recommended programs include, but are not limited to:
- IRAP: Accelerated Review Process (ARP)
- Business Development Canada (BDC)
- Mathematics of Information Technology and Complex Systems (MITACS) Accelerate
If you would like to learn more about the above-mentioned programs, or need support on other Canadian Government Funding vehicles, please contact one of our Canadian Government Funding Experts. Additionally, you could sign up for a Free 60 Minute Canadian Government Funding Workshop. Businesses also have the option to receive the latest Canadian Government Funding updates and details by following us on Twitter and signing up for our Weekly Canadian Government Funding E-Newsletter.