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North Innovation Fund - SR&ED Financing

North Innovation Fund (NIF) provides ongoing non-dilutive SR&ED financing to assist early- to mid- stage high-tech companies increase their cash flow. Based on NIF's extensive understanding of the Scientific Research and Experimental Development (SR&ED) program, they are able to provide bridge financing by loaning against SR&ED claims, before the claim is even filed.

SR&ED Financing Helps to Bridge Funding Gaps

North Innovation Fund believes that the SR&ED program is critical for the viability of startup companies in Canada. However, the main challenge with the SR&ED program is that it often takes over 1 year before the funds can be received by the applicant. SR&ED financing helps to facilitate and alleviate existing cash flow issues in early-stage businesses, in order to help them to accelerate their business plans.

SR&ED financing helps to fill the funding gap in a non-dilutive manner, prior to subsequent funding rounds. Often, startup and early-stage companies have difficulty commercializing their concepts after exhausting their previous rounds of funding. Venture capital is extremely expensive from a dilution perspective, and may be difficult to obtain for an early-stage company. From a finance point of view, all lower-cost sources of financing should be explored before equity is deployed:

  1. Cash (from revenues)
  2. Loans from friends and family
  3. Factoring of Accounts Receivables and other tangible assets
  4. Debt financing
  5. Equity Financing

NIF's SR&ED financing is a form of accrual debt financing that allows startup companies to bridge the funding gap and to extend the runaway until the next funding round.

For more information about NIF's SR&ED financing investment criteria, go to www.northinnovationfund.com.