Financing programs offered by Sherbrooke Innopole

New Entrepreneur Fund

It is often difficult for new entrepreneurs to get the funds required to start a first business.

In order to increase the amount of necessary initial capital, Sherbrooke Innopole offers entrepreneurs a non-repayable contribution of up to $15,000 through the New Entrepreneur Fund.

Eligibility Criteria

The candidate must:

• Be a Canadian citizen or a permanent resident with main residence in Québec;
• Be 18 years of age or older;
• Have experience and/or training in a field related to the project;
• Be incorporating a company for the first time;
• Hold at least 35% of company shares;
• Be committed to working full-time for the new business or be part of the Accélérateur de création d’entreprises technologiques (ACET) program or the Espace-inc acceleration program;
• Be free from any bankruptcy judgement;
• Be committed to reimbursing the financial contribution granted if the business place moves away from Sherbrooke before a minimal 5-year period from the date of the signature of the agreement with Sherbrooke Innopole.

The company must:

• Be located and operate in the City of Sherbrooke;
• Be a for-profit company;
• Be part of the key sectors prioritized by Sherbrooke Innopole:
  • Advanced Manufacturing
  • Information Technologies
  • Cleantech
  • Life Sciences
  • Micro-nanotechnologies
• Create two full-time permanent jobs, including the entrepreneur(s), within the first two years of business;
• Be based on a business plan with realistic financial forecasts that demonstrate business viability and profitability;
• Have a level of capitalisation of at least 20% of total assets, including a maximum of 50% of the contribution granted (capitalization must include at least 10% personal cash investment / transfer of useful assets may be considered as capitalisation for up to 10%);
• Be in pre-commercialization or start-up phase (between 0 and 6 months of commercialization);
  Businesses in the seed stage are not accepted.
• Must be funded through a source other than Sherbrooke Innopole.

Conditions of the Financial Assistance

• 5% of the cost of the project, maximum of $15,000 by project to be divided among eligible candidates

 

Seed Fund

The Seed Fund for innovation-driven early stage companies (pre-startup and seed) is offered in partnership with other investors. Sherbrooke Innopole can invest up to $125,000 in equity or quasi-equity capital.

 

Pre-commercialization Fund

The Pre-commercialization Fund is for innovation-driven start-ups in the pre-startup/pre-commercialization stage or for existing businesses moving towards a technological shift, and is offered in partnership with other investors. Sherbrooke Innopole can invest up to $200,000 in equity or quasi-equity capital.

 

Program for Innovative Entrepreneurship

The Program for Innovative Entrepreneurship aims to support innovative Sherbrooke businesses in their start-up/marketing phase (1 or 2 clients) by offering, in different forms, funding or direct investment for up to $250,000 or more when in syndication with partners.

 

Local Investment Fund

Managed by Sherbrooke Innopole, the Local Investment Fund provides assistance for business start-up, expansion, acquisition, consolidation, and succession and transfer. It provides access to bank loans up to $150,000.

Eligibility Criteria

The company must:

• Demonstrate stability and permanence;
• Generate significant economic returns for the territory of the City of Sherbrooke;
• Be registered with the Registre des entreprises du Québec (REQ);
• Be part of the key sectors prioritized by Sherbrooke Innopole:
  • Advanced Manufacturing
  • Information Technologies
  • Cleantech
  • Life Sciences
  • Micro-nanotechnologies
• Produce a business plan which establishes job creation as well as the potential for profitability and growth;
• Hold capital interests representing at least 20%* of total assets.
  *Different percentages apply in succession cases, depending on the value of the project.

>> Investment Policy – Local Investment Fund (French)