Funding R&D
There are different sources of funds for R&D
- The most obvious source for finance is a bank loan. This can be challenging, especially for the start-up companies that have to demostrate the viability and practical application of the results from their research. Banks are reluctant to provide loans for highly risky projects.
- Venture capitalists are interested in investing in companies that will give them a high rate of return.
- Angel investors are individuals who invest in private companies, in return for some control in the company.
- There are government grants specifically setup to help companies with their R&D. IRAP and NSERC are good sources for funds and expertise.
- SR&ED is available as a tax credit to help offset the cost of doing R&D.