2018 BIOENTERPRISE SEED FUNDING PROGRAM

PROGRAM GUIDE

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Introduction

Bioenterprise Corporation was awarded funds in 2015 to work in partnership with Innovation Guelph to assist start-ups and early-stage innovative businesses in Southern Ontario through the commercialization stage to the market entry stage, allowing these businesses to grow by generating revenue and attracting follow-on private investment. Bioenterprise and their project partner Innovation Guelph will work collaboratively to provide specialized industry expertise and business coaching, as well as distribute up to a maximum of $30,000 in matching seed funding to innovative businesses in the agriculture and agri-foods, sustainable and environmental technologies, advanced manufacturing and social innovation industry sectors. The Innovation Guelph program also aims to increase the number of sustainable women-led businesses in the City of Guelph and surrounding area.

Both Bioenterprise and Innovation Guelph will provide seed funding on a one-to-one matching basis up to a maximum of $30,000, and provide support services including mentoring/coaching, market and competitive analysis, financial and marketing strategy, investment preparation, and introduction to strategic partners on a project-to-project basis.

Program Milestones

2015 Bioenterprise Program Launch September 1, 2015

2015 Application Round 1 CLOSED

2016 – 2017 Application Round 2 (OPEN CALL) CLOSED

2016 – 2017 Application Round 3 (OPEN CALL) CLOSED

2017 – 2018 Application Round 4 (OPEN CALL) CLOSED

2018 Application Round 5 (OPEN CALL) October 2018

*Additional open calls for proposals may occur annually, please check the Bioenterprise website for related program updates.

Application Process

Step 1: Open Call for Applications

Bioenterprise will post an open call for Bioenterprise Seed Funding Program applications in the spring of 2016 & 2017 and fall of 2018. All interested companies should stay tuned to the Bioenterprise website (http://bioenterprise.ca/index.cfm?page=seedfund_on) for program updates and application deadlines.

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Step 2: Letter of Intent

Interested applicants must submit a Letter of Intent (LOI) via an online submission link provided on the Bioenterprise website. The LOI is intended to assist applicants in determining basic eligibility and providing high-level project details to Bioenterprise prior to submitting a full application. Not all companies that submit an LOI will be invited to submit a full application.

Step 3: Initial Project Guidance

Bioenterprise analysts will provide preliminary support to applicants in terms of developing and vetting LOI content, project scope, and milestones.

If the applicant’s LOI is approved, they will be invited to submit a full application consisting of an application intake form, application workbook and a budget template, which will be provided.

Contact: laura.millson@bioenterprise.ca or alexandra.coccari@bioenterprise.ca

Step 4: Formal Application

The applicant will be responsible for completing and submitting the following documents (to be provided by Bioenterprise):

1. Bioenterprise Seed Funding Program Application Workbook, which includes: a. Intake form b. Project Milestone Plan c. Budget

2. Proof of matching funds a. Financial statement or letter from financial institution demonstrating funds are

available; b. Representation from the applicant entrepreneur/business regarding use of

matching funds for the project; 3. Supporting documents such as business plan, executive summary, or pitch deck

(strongly recommended); 4. Consultant CV* and quotes if relevant

Step 5: Selection Committee Evaluation

Step 6: Application Response & Recommendations

* If proposing to use a pre-determined consultant, the applicant must provide the consultants CV as part of the application, and the consultant must be prepared for a reference check by Bioenterprise staff.

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Eligibility Criteria All applicant entrepreneurs/businesses must meet these basic eligibility criteria:

• The applicant must be early-stage or in the start-up phase of development and the business must be headquartered in Southern Ontario (regions are outlined in Appendix A)

• The applicant must be incorporated (Ontario or federal), and have less than 50 employees • The applicant must be able to demonstrate matching funds up to a maximum of $30,000 in

order to receive seed funding. o Stacking of public funding (federal, provincial or municipal) is not permitted and will

not be considered matching funds. • There is a demonstrated need for the seed funds, meaning that the project likely won’t go

forward without a cash injection. • The applicant has a unique agricultural or agri-food innovation • There is a benefit (directly or indirectly) to local/provincial agriculture and/or the

producer/processor community • There is an economic impact (job creation, revenue generation, add-on investment) to

Ontario • The business opportunity has potential to address Canadian or international markets • The applicant has not received past funding from any of FedDev Ontario IBI delivery partner

programs, including: o Bioenterprise Corporation - Seed Funding Program

http://bioenterprise.ca/index.cfm?page=seed_funding o Innovation Guelph – Fuel Injection Program

http://innovationguelph.ca/fuel-injection/ o Communitech - Fierce Founders Accelerator

https://www.communitech.ca/how-we-help/support-for-startups/fierce-founders/fierce-founders-accelerator/

o Waterloo Accelerator Centre – Jumpstart http://acceleratorcentre.com/acjumpstart/

o Ontario Centres of Excellence – SmartStart Seed Fund http://www.oce-ontario.org/programs/entrepreneurship-programs/smartstart-seed-fund

o Northumberland CFDC – N1M https://financingandstrategy.com/n1m/

o TechAlliance – BURST https://techalliance.ca/burst/

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Eligible Project Types

• Business Management & Strategy • Technical Expertise Development (IT or

Engineering) • Leadership Training • Talent Recruitment • Branding & Marketing

• Process Efficiency & Optimization • New Product Development • Prototyping & Product Piloting • B2B Sales & Business Development • Investment Readiness & Preparation

Eligible Costs Activities costs will be:

• Reasonable and needed to carry out the project • Directly connected to the Project Milestone Plan • Subject to approval by Bioenterprise • Auditable by funding body (paper trail is necessary)

Specific considerations include:

• Travel – only prime transportation is eligible† • Consultants – professional services are eligible • Legal fees are eligible up to a maximum of $10,000 of total project budget • Capital expenditure costs are not to exceed 25% of total project cost

o Equipment assets – must be leased and/or retained‡ o Leasehold improvements as a category are not eligible. o Costs related to commissioning of new equipment or modification/relocation of

existing equipment (infrastructure and commissioning) related to the project may be eligible

• Labour/salaries/benefits – on direct project activities only o Internal employee labour costs incremental to the project not to exceed 15% of total

project cost o Owner salary costs are not eligible

• Sales Tax/HST is not an eligible expense • Participation in conferences/trade shows – exhibit or present§

† Airfare and mileage considerations must adhere to Treasury Board of Canada policies (i.e. economy class and ¢/km) ‡ Must be written and signed off on by both parties in an addendum to the Project Contribution Agreement for successful project agreements. § Strategic meetings with collaborators, customers or investors must be scheduled and approved prior to conference date.

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Ineligible Costs

• Costs of land, building or vehicle purchase • Refinancing • Costs of intangible assets such as goodwill, whether capitalized or expensed • Depreciation or amortization expenses • Interest on invested capital, bonds, debentures, or mortgages • Bond discount • Losses of investments, bad debts and any other debts • Fines or penalties • Costs related to litigation • Non-incremental wages • Fees for administrators, including payments to any member or officer of the recipient’s

Board of Directors • Opportunity costs • Food, accommodation and entertainment costs • Costs of membership in a professional body • Lobbyist fees • Cost of conference or tradeshow admission if not exhibiting or presenting • Costs associated with basic research and development activities

Application Assessment and Evaluation

The Evaluation Committee** will assess projects in two steps.

1. General Assessment Criteria – utilizes an evaluation rubric and will consider details provided in the Letter of Intent (LOI) -- constitutes 75% of the total score.

2. Merit Assessment Criteria – additional points can be awarded by the Evaluation and Selection Committee based on additional details or supplementary documentation provided by the company and/or evaluation committee -- constitutes 25% of the total score.

A project must meet all the General Assessment Criteria to be considered for Merit Assessment.

** The Selection Committee will be a Bioenterprise committee with participation of Board members, funders, and program partners, including FedDev Ontario as a committee observer. The committee will evaluate applications during a half-day session with a goal to move forward with a minimum of 9 recipients in the 2017-18 round. These targets have differed depending on program year.

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General Assessment Criteria

1. Applicant has completed the application requirements in full. 2. All basic eligibility requirements have been met (outlined in Eligibility Criteria section of

the Program Guide) 3. The project clearly aligns with Bioenterprise Seed Funding Program’s Eligible Activities 4. The project description, activity budget, and milestone plan are completed and provide

sufficient details to complete a merit-based assessment. 5. Applicant has acknowledged his/her agreement with the terms and conditions of the

application form. 6. The application provides enough information to address all of the evaluation criteria

listed below:

A. Project/Problem Description • Project purpose is clear • Problem clearly stated • Approach clearly stated • Project team identified • Innovation is clearly articulated (E.g. product, process, marketing, and

organizational innovation) • Project significance to company’s growth strategy

B. Expected Outcomes

• Outcomes are tangible within the project timeline and impactful (E.g. jobs created, new revenues generated, add-on investment secured)

• New products/services launched • Sustainable practices for the company identified (E.g. cost, waste, water or

energy savings achieved - environmental footprint)

C. Milestones & Budget • Milestones are identified & clearly articulated • Activities are clearly articulated with achievable outcomes • Budget aligns with activities • Costs are realistic • Use of seed funds are clear • Timeline is realistic

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Recipient Agreement Process

Applicants will be notified as funding decisions are reached, usually within 30 business days from the application due date.

Successful applicants (“Recipient”) must enter into a Contribution Agreement with Bioenterprise. To formalize this, both parties will sign a Bioenterprise Advisory Agreement. Terms of the project work plan will be formalized by way of the signing of the Contribution Agreement.

Through this agreement, the Recipient will work with allocated Bioenterprise Lead Analyst to schedule monthly status meetings and regular correspondence for mentorship and coaching related to the project.

Seed funding will be released to the Recipient on a milestone basis, outlined below:

• 50% of activity seed financing released with verification of activity initiation.

• 25% of activity seed financing released upon recommendation by Lead Analyst and completion of Interim Report.

• 25% of activity seed financing released upon completion of project and final reporting requirements.

The Recipient will be responsible for tracking expenses against each activity using a template provided upon approval, as well as for storing receipts/invoices for a minimum of 6 years for auditing purposes.

With regards to Bioenterprise’s reporting requirements, the Recipient will be required to complete the Bioenterprise Quarterly Client Survey. Second and third seed funding installments will require the submission of an Interim Expenditures Report and a Project Completion Report, respectively – templates will be provided. Recipients are required to complete Annual Surveys for up to 6 years after the completion of the project. The client surveys and reports are designed to measure achievements and outcomes from the project and provide feedback on the relevance, timeliness and accuracy of the services received through the program.

Details of these requirements will be outlined in the Agreement and Schedule A.

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Appendix A

Applicant Entrepreneur/Business must be located within the regions outlined below:

Territory – Southern Ontario

Southern Ontario includes the following 2011 Statistic Canada Census Regions: 1 Stormont, Dundas and Glengarry; 2 Prescott and Russell; 6 Ottawa; 7 Leeds and Grenville; 9 Lanark; 10 Frontenac; 11 Lennox and Addington; 12 Hastings; 13 Prince Edward; 14 Northumberland; 15 Peterborough; 16 Kawartha Lakes; 18 Durham; 19 York; 20 Toronto; 21 Peel; 22 Dufferin; 23 Wellington; 24 Halton; 25 Hamilton; 26 Niagara; 28 Haldimand-Norfolk; 29 Brant; 30 Waterloo; 31 Perth; 32 Oxford; 34 Elgin; 36 Chatham-Kent; 37 Essex; 38 Lambton; 39 Middlesex; 40 Huron; 41 Bruce; 42 Grey; 43 Simcoe; 46 Haliburton; and 47 Renfrew.

See the following maps below for visual representation:

Map 1: All Regions of Southern Ontario,

Map 2A: Western Ontario,

Map 2B: Central and Eastern Ontario.

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Quebec

Manitoba

57

58

Kenora

Sault Ste. Marie

Timmins

Ottawa

Toronto

Windsor

SudburySudbury

ThunderBay

60

5658

57 52

48

59

54

49 47

7

1946

44

15

53

12

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10

11

51

14

13

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34

2

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37

Toronto

Hamilton

London

Windsor

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40

16

3938 28

23

18

36

31

19

32 26

37

22

30

34

21

2529

24

20

3

2

1

AInset

MAP 1

Ontario2011 Census Agricultural Regionsand Census Divisions

LegendCensus Agricultural RegionCensus Division

Urban Centre

Source: 2011 Census of AgricultureAgriculture Division, Statistics Canada

Map produced by Remote Sensing and Geospatial AnalysisAgriculture Division, Statistics Canada, 2012

A

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MAP 2A

Ontario

LegendCensus Agricultural RegionCensus Division

Urban CentreCensus Consolidated Subdivision

2011 Census Divisions andCensus Consolidated Subdivisions

Source: 2011 Census of Agriculture, Agriculture Division, Statistics Canada Map produced by Remote Sensing and Geospatial Analysis, Agriculture Division, Statistics Canada, 2012

Census Agricultural Regions

0 200100

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LegendCensus Agricultural RegionCensus Division

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2011 Census Divisions andCensus Consolidated Subdivisions

Source: 2011 Census of Agriculture, Agriculture Division, Statistics Canada Map produced by Remote Sensing and Geospatial Analysis, Agriculture Division, Statistics Canada, 2012

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Quebec

5

1

23 4

Census Agricultural Regions

Ü

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