Canadian startups often face two major hurdles: securing non-dilutive capital and gaining business expertise for commercialization. Many innovations fail due to lack of financial and strategic support.
The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) offers "smart money"—combining non-repayable funding, expert advisory services, and valuable connections.
What Exactly is NRC IRAP?
Think of NRC IRAP not as a simple grant provider, but as an investor in your success. Its official mandate is "to stimulate wealth creation for Canada through innovation". This means the program is looking for high-potential companies that can drive economic growth, create jobs, and establish Canada as a global technology leader. When you approach IRAP, you're not just an applicant; you're a potential partner pitching a compelling investment in Canada's future.
Financial Assistance
This is the non-repayable funding that helps de-risk your innovation. IRAP provides contributions to cover a significant portion of your R&D project costs, with funding ranging from $50,000 for smaller projects to as much as $10 million for large-scale initiatives.
Advisory Services
Perhaps even more valuable than the funding, IRAP gives you access to a network of over 250 Industrial Technology Advisors (ITAs). These advisors offer strategic guidance, technical insights, and connections to an ecosystem of partners that can fundamentally change your company's growth trajectory.
Your Guide: The Industrial Technology Advisor (ITA)
The entire IRAP experience is built on your relationship with an ITA. These are not government administrators; they are veteran R&D professionals with deep private-sector experience. Your ITA acts as a trusted mentor, working with you to shape your project, build a strong proposal, and navigate challenges. The application is a collaborative process, so building a strong, credible relationship with your ITA is the key to success.
For many new companies, the journey starts with a Client Engagement Advisor (CEA), who performs an initial screening to ensure your business is a good fit for the program before connecting you with an ITA.
Are You Eligible for NRC IRAP?
Before you call, make sure you meet the basic criteria:
Canadian SME
You are an incorporated, for-profit Canadian small or medium-sized enterprise (SME).
Company Size
You have 500 or fewer full-time employees.
Growth Through Innovation
Your goal is to grow by developing and commercializing innovative technology in Canada.
You'll also need to demonstrate that you have a strong technical and business team and the financial stability to cover your share of the project costs.
How to Get IRAP Funding: A Step-by-Step Guide
The path from inquiry to funding is a structured, collaborative journey.
Initial Contact
Your first step is to call the NRC IRAP hotline at 1-877-994-4727. You'll likely speak with a Client Engagement Advisor (CEA) for a preliminary assessment.
ITA Assessment
If you're a good fit, you'll be connected with a local Industrial Technology Advisor (ITA). The ITA will conduct a deep dive into your business plan, technology, and market opportunity.
Proposal Development
You will work directly with your ITA to build a comprehensive project proposal. This includes your project goals, milestones, budget, and commercialization plan. Be ready with your business plan, financial statements, and team CVs.
Review and Decision
Once submitted, the proposal is reviewed internally. Decisions can take anywhere from 20 to 65 business days, depending on the project size.
Contribution Agreement
If approved, you'll sign a Contribution Agreement that outlines the terms of the funding. No public announcements should be made until this is signed by both parties.
Understanding the Money: What IRAP Covers
It's crucial to understand how the funding works for your financial planning.
What's Covered
IRAP provides non-repayable contributions for up to 80% of salaries for your technical staff and up to 50% of contractor fees for work on the project.
What's Not Covered
Capital expenses (like equipment), overhead, and salaries for non-technical staff (like sales and marketing) are generally not eligible.
How You Get Paid
IRAP is a cost-sharing, reimbursement program. This means you must pay 100% of your expenses first and then submit monthly claims to be reimbursed for the eligible portion. This model requires you to have enough working capital to manage your cash flow, a key factor your ITA will assess.
Best Suited For: Startups needing to validate a technical concept or business hypothesis quickly.
Technology Innovation Projects (Mid to Large Scale)
Funding Limit: Up to $10 million
Typical Project Scope: High-growth potential projects, new product development, software creation, AI integration, industrial engineering solutions.
Best Suited For: Established SMEs scaling a core technology or undertaking a major innovation initiative.
Youth Employment Program (YEP)
Funding Limit: Up to $30,000 per graduate
Typical Project Scope: Hiring recent post-secondary graduates (ages 15-30) for 6- to 12-month internships in R&D, engineering, or other tech-related roles.
Best Suited For: Companies at any stage looking to build their technical team with emerging talent.
The Secret Weapon: Management Advisory Services (MAS)
Many tech companies excel at R&D but struggle with business strategy. NRC IRAP created the Management Advisory Services (MAS) program to solve this exact problem. Delivered in partnership with CMC-Canada, MAS gives you subsidized access to elite management consultants to help you overcome strategic hurdles.
The Gold Standard: Certified Management Consultants (CMCs)
The MAS program exclusively uses Certified Management Consultants (CMCs), the profession's only international certification. This ensures you're getting advice from a pre-vetted, world-class expert who meets a global standard of excellence. It completely de-risks the process of hiring a strategic advisor.
How the MAS Program Works
ITA Referral
Your ITA must refer you to the program when they identify a management challenge holding your company back.
Matching
Your project is posted anonymously to the national roster of CMCs. You get to interview three qualified consultants and choose the best fit.
The Engagement
You get a focused, 40-hour consulting project designed to deliver a concrete action plan within two months. NRC IRAP covers the vast majority of the cost; you only pay a small administration fee.
Common MAS deliverables include financing pitch decks, go-to-market strategies, strategic business plans, and process optimization analysis.
Your Next Steps with Sagentix Advisors
As a Certified Management Consultant (CMC) on the approved MAS program roster, Sagentix Advisors is uniquely positioned to help you build the robust business case needed to secure IRAP support and translate your innovation into a commercial success story.
Ready to Get Started?
NRC IRAP is one of the most powerful advantages available to Canadian innovators. By understanding its philosophy and leveraging both its financial and advisory support, you can significantly accelerate your path to commercial success.
Strategic Comparison: IRAP vs. SR&ED (Scientific Research and Experimental Development)
Here's what to do next:
1
If you're new to IRAP
Call the national hotline at 1-877-994-4727 to start the conversation.
2
If you're already an IRAP client
Talk to your ITA about the Management Advisory Services (MAS) program to address your key business challenges.
3
If you need strategic guidance
Contact Sagentix Advisors to help you prepare a winning strategy and build the compelling business case needed to turn your innovation into a success.