Archive for February, 2012

During a speech today at the Creative Economy Summit, the Minister of State for Science and Technology, Gary Goodyear, announced that Canada will continue to make key investments in science and technology.

“Through our government’s science and technology strategy, we are keeping our economy strong, creating high-quality jobs and ensuring Canada is a premier destination for the world’s top researchers.  By supporting innovation, we are not only encouraging cutting-edge research but also bringing promising creative ideas to the marketplace.”  (Gary Goodyear)

In regards to SR&ED, the federal government is currently studying the recommendations of the Jenkins report, and while they do not necessarily subscribe to all of the recommendations, they agree with the need to address the challenges present in business-related R&D.  Gary outlined the achievements of Canada’s science and technology strategy, which is aimed at attracting and retaining the world’s brightest researchers, increasing R&D investment, and commercializing promising research.

The Canadian Manufacturing Network has launched with a Manufacturing JOBS Resource Network and a National Skills & Learning Portal.   The Canadian Manufacturing Network was made possible through  a collaboration between two of Canada’s leading manufacturing organizations: Excellence in Manufacturing Consortium (EMC), and the Textiles Human Resources Council (THRC).

Manufacturing JOBS Resource Network (MFGJOBS)

After more than a year of piloting with industry employers and job-seekers, the Manufacturing JOBS Resource Network is now open to the public and connecting employers, job-seekers and labour market partners across all manufacturing sectors. 

Online Skills & Learning Portal

The Canadian Manufacturing Network’s Catalogue of Programs includes hundreds of world-class bilingual, industry-vetted online programs, comprising thousands of subjects of online learning for workers at all levels and across all manufacturing sectors.

Please go to EMC’s website for more information.

In an interview with Reuters, Energy Minister Chris Bently refused to alter controversial rules that require local content for all projects.  The FIT review will be complete by the end of March, and it is expected that cuts will be made in the generous government subsidies that have previously jumpstarted renewable energy businesses in Ontario.

Ontario launched the feed-in-tariff (FIT) program in 2009 as a means to create jobs to replace jobs lost in the declining manufacturing sector.  The FIT program pays above-market rates to producers of renewable energy, such as solar power, wind power, and biomass.

Although cuts will be made to the FIT program, our view is that reductions can be offset by other funding mechanisms, such as refunds from the federal government’s SR&ED (Scientific Research & Experimental Development) program.  The SR&ED program offers a refundable tax credits of up to 40% of prior R&D expenses incurred within Canada, for the last 2 fiscal years.  The local content requirements will likely make many activities eligible for SR&ED.

The Federal Economic Development Agency for Southern Ontario (FedDev) put up $4.85 million into young startups, in order to leverage an additional $15.2 million from venture capital and angel investment groups.  The companies to receive funding are as follows:

Trillium Therapeutics Inc.
Total funding: $2.97-million
Sources: $965,000 from FedDev and $2-million from Covington Capital, GrowthWorks, and BDC Venture Capital.
Purpose: The biotechnology company wants to conduct clinical testing of a new therapy to threat a chronic bladder disease affecting millions of North American women.

Profound Medical Inc.
Total funding: $16.2-million
Sources: $867,000 from FedDev and $7.5-million from Genesys Ventures, BDC Venture Capital, MaRS Investment Accelerator Fund, and Tri-Color Venture Fund.
Purpose: Company has developed a non-surgical treatment method for prostate cancer and needs the money to fund the regulatory approval process.

Axela Inc.
Total funding: $2.8-million
Sources: $708,333 from FedDev and $2.125-million from VenGrowth Capital.
Purpose: The company is hoping to continue developing its protein analysis tools to provide more detailed medical diagnoses.

Field ID Inc.
Total funding: $2.23-million
Sources: $575,000 from FedDev, $500,000 from the BDC and $1.15-million from the IntelliVest Angel Group.
Purpose: To enhance the delivery platform of its automatic corporate inspection and safety software to large oil, gas, mining and utilities companies.

StickerYou Inc.
Total funding: $2.04-million
Sources: $539,305 from FedDev, $500,000 from an unnamed venture capital firm and $1-million from IntelliVest.
Purpose: Customized sticker and label maker wants to optimize its online platform with new features such as home printing and also launch a mobile application.

Futurestate IT
Total funding: $1.5-million
Sources: $500,000 from FedDev, $1-million from the MaRS Investment Accelerator Fund and angel investment from members Maple Leaf Angels.
Purpose: To further develop software solutions allowing companies to migrate software and data from old operating systems to newer ones.

Fuse Powered Inc.
Total funding: $1.5-million
Sources: $500,000 from FedDev, $1-million from BlackBerry Partners Fund
Purpose: Digital mobile game publisher behind Fuseboxx will continue developing the Fuseboxx mobile gaming technology platform.

Shiny Inc.
Total funding: $592,500
Sources: $197,500 from FedDev, $395,000 from York Angel Investors and Maple Leaf Angels.
Purpose: Advertising technology company wants to commercialize its self-service online advertising platform.

 More about Canadian small business financing

With the help of the Ontario government, Pond Biofuels is piloting a new CO2 absorption system at St. Marys Cement.  The new system will reduce greenhouse gases by absorbing dirty smokestack emissions, and grow algae which can be used in oil production, can be converted into biodisel and bioplastics, or act as a renewable coal substitute.  One tonne of algae can yield 100 liters or more of diesel, and the biomass can be used as a renewable energy source.  The expected completion date for a full-scale commercial facility will be 2014.

“Algae is one of the fastest growing organisms in the world, consuming almost twice their weight in carbon dioxide, it is the most cost effective and sustainable means of carbon sequestration.”