Innovative Solutions Canada — Challenge Stream

In plain language

Two-phase innovation challenge model: Phase 1 pays up to $150K (DND up to $300K) for a feasibility study; Phase 2 pays up to $1M ($2M DND) for prototype build and testing. Canadian SMEs only, IP stays with you, non-dilutive. Challenges are posted against specific federal problem statements — if nothing posted matches what you do, you wait. Highly competitive (often <10% of Phase 1 applicants reach Phase 2). Most useful as revenue + credibility for deep-tech startups that already have a working prototype concept. Read the challenge statement literally — solutions that don't map 1:1 get filtered out fast.

Who qualifies

What you'll have to report

Phase 1 feasibility report (6 months); Phase 2 prototype milestones and test results (up to 2 years); final IP-retention certification and commercialization outlook.