Ontario has established itself as a leading hub for innovation and entrepreneurship in Canada. The provincial government has introduced various programs and funds to nurture emerging technologies and support startups. By investing in the innovation ecosystem, Ontario aims to transition into a knowledge-based economy and become more competitive globally. Some of the key government initiatives to spur innovation in Ontario include the Ontario Emerging Technologies Fund, the Ontario Venture Capital Fund, and the Ontario Network of Entrepreneurs. The government also partners with angel investor networks, business incubators and accelerators to provide funding and mentorship to early stage companies. With continued support, Ontario is poised to see the rise of more homegrown disruptive technologies and globally competitive firms across sectors like cleantech, biotech and information technology.
Ontario Emerging Technologies Fund co-invests alongside private investors to commercialize research
The Ontario Emerging Technologies Fund (OETF) was established by the provincial government in 2009 with $250 million to invest in innovative, high-growth companies. The fund is designed to leverage private capital by co-investing alongside angels, VCs and other institutional investors. To qualify for OETF financing, companies must conduct R&D in Ontario, employ skilled workers and have the potential to commercialize technological innovations. The fund targets emerging sectors like cleantech, digital media, pharmaceuticals and software. By catalyzing private investments, OETF helps turn scientific research into marketable products and services, generating economic returns for the province.
Ontario Venture Capital Fund invests in VC funds to increase availability of risk capital
Access to risk capital is vital for Ontario’s startups to scale up. Launched in 2008, the $205 million Ontario Venture Capital Fund (OVCF) aims to build up local VC capacity by investing in funds that finance early stage companies. Half of OVCF’s capital is allocated to funds investing in life sciences, advanced health technologies and digital media sectors. The fund-of-funds model draws more private capital into the VC ecosystem and bridges the gap between angel and later stage financing. With OVCF’s backing, VC funds can raise larger pools of capital to provide Ontario entrepreneurs the growth financing needed to expand.
Ontario Network of Entrepreneurs offers mentorship and support to startups
The Ontario Network of Entrepreneurs (ONE) is a provincially funded organization supporting technology entrepreneurs. Through its Regional Innovation Centres, ONE delivers programs that help startups commercialize ideas and grow their businesses. Services offered include mentorship and training, IP assistance, market research support and access to seed capital through the Investment Accelerator Fund. ONE also works with academic institutions to help researchers translate discoveries into viable companies. By adopting a hands-on approach, ONE incubates a robust startup community and fosters a culture of entrepreneurship across Ontario.
Partnerships with angel investors and business incubators provide startups critical early stage financing
Angel investor networks and business incubators are vital in nurturing early stage innovation. The Ontario government partners with these organizations to improve startups’ access to capital, expertise and facilities. Notable initiatives include the Investment Accelerator Fund which matches investments from approved angel groups, and the Ontario Network of Entrepreneurs Innovation Demonstration Fund which provides financing to incubator graduates. The province also offers tax incentives to stimulate angel investments in emerging tech firms. By facilitating connections between startups and ecosystem players, Ontario is able to better support the commercialization journey from lab to market.
Through direct investments, fund-of-funds and partnerships, the Ontario government has introduced various initiatives to stimulate innovation and entrepreneurship. By investing in both human and venture capital, Ontario has created a vibrant ecosystem that transforms ideas and technologies into thriving businesses.