7 Funding Programs Toronto Startups Should Know About in 2026

Scaling a startup in 2026 is hard enough as it is. From early ideation to product development, hiring, and customer acquisition, founders and leaders are constantly making tradeoffs on where to invest limited time and capital. The last thing they should be doing is leaving government funding on the table, especially when those programs exist specifically to accelerate growth.

Canada quietly offers billions in grants, tax credits, loans, and innovation programs every year, but most founders don’t know where to start or assume the process is too complex.

We’ve cut through the noise to highlight seven funding programs that matter most for founders in Toronto and across Canada. Whether you’re building software, digital media, or clean tech, these opportunities can extend runway and reduce burn at critical stages of growth.

1. The Creative Tech Grant: Ontario Creates (IDM Fund)

For digital media and interactive tech startups, this is the gold standard. It helps Ontario companies create and market high-quality digital products without giving up equity.

The Goods: Non-dilutive grants covering up to 50 percent of project costs

Best For: Video games, XR or AR experiences, digital storytelling platforms

2026 Focus: Projects integrating AI for accessibility

Deadlines: March 25 and April 13 for major 2026 windows

2. The Global Expansion Grant: CanExport

Ready to take your Toronto-born product to the world? CanExport supports businesses entering new international markets. However, keep in mind that the program operates on a cost-share model, reimbursing you up to 50% of eligible expenses.

The Goods: Up to $50,000 in funding (you spend the full amount first, then get reimbursed for half)

What It Covers: Trade show fees, international marketing, travel for business development, market research, translation, and other export-focused activities. CanExport covers 50% of eligible costs up to the $50K cap.

Pro Tip: You must be targeting a new export market where your company has little or no previous sales. Your project budget generally needs to be large enough to justify the 50% funding model (e.g., a $100K project to receive the full $50K).

3. The Training Subsidy: Canada-Ontario Job Grant (COJG)

Hiring and upskilling talent is one of the biggest expenses for a growing company. COJG helps you upgrade your team without carrying the full financial weight.

The Goods: Reimburses 50 to 83 percent of training costs

The Math: Up to $15,000 per new hire or $10,000 for existing employees

The Rule: Apply and be approved before training begins. They won’t reimburse past courses

4. The Deep-Tech Partner: NRC IRAP

IRAP is one of the most respected programs in Canada. It pairs you with an Industrial Technology Advisor who acts as a technical mentor while helping fund your project.

The Goods: Covers up to 80 percent of technical salaries

Why Founders Love It: ITAs are often former CTOs or engineers. They help refine your technical roadmap, not just fund it

Status: Rolling intake year-round

5. The Big Reliable: SR&ED Tax Credits

The Scientific Research and Experimental Development program is Canada’s largest source of innovation funding. It is a tax incentive you are entitled to if you are doing R&D work.

The Goods: For a standard tech startup or small Canadian-Controlled Private Corporation (CCPC), you generally get back between 43% and 64% of your eligible R&D costs

Capital is Back: Servers, prototyping hardware, and other capital costs are now eligible

Haus Tip: You don’t need a lab. If your team is solving a technical uncertainty in code, it likely qualifies

6. The Digital Product Tax Credit: OIDMTC

The Ontario Interactive Digital Media Tax Credit is a refundable credit for digital products like games, apps, and educational platforms.

The Goods: Up to 40 percent of eligible labor and marketing costs

The Strategy: SR&ED covers technical uncertainty while OIDMTC covers product development and marketing. It is a powerful way to recoup costs once your tech is stable

7. The Scale-Up Fuel: FedDev Ontario

FedDev Ontario has several funding channels, but the one most founders care about is the Business Scale‑Up and Productivity stream: repayable, interest‑free funding to help established companies grow faster and adopt new tech.

The Goods: $125,000 – $10 million (supporting up to ~50% of eligible costs)

What It Covers: Tech adoption, productivity improvements, scaling operations, commercialization pushes, and market expansion initiatives.

Pro Tip: This stream is best for companies past MVP with a track record (often 3+ years and several employees), because it’s designed to accelerate growth, not just seed ideas.

To Recap:

Program	Best For	Type	Max Funding
Ontario Creates	Digital Media	Grant	Up to 50 percent of project
CanExport	Global Expansion	Grant	Up to 50,000 dollars
COJG	Team Training	Grant	15,000 dollars per employee
IRAP	Technical R&D	Salary Subsidy	80 percent of salaries
SR&ED	Software and AI	Tax Credit	35 percent refundable
OIDMTC	Gaming and Apps	Tax Credit	40 percent of labor
FedDev	Scaling and Facilities	0% Loan	Up to 10 million dollars

Final Tips

Stack your funding wisely: Use IRAP for salaries, SR&ED for tax credits on the same work, and COJG for training. Just be sure total government funding doesn’t exceed 75% of eligible project costs, a common rule to prevent double-dipping when combining programs (CanExport Innovation Guide, Government of Canada).

Track everything: Log developer hours, technical challenges, or project milestones as they happen using Jira, Asana, or even a simple spreadsheet. This makes year-end claims much smoother.

Thinking about applying? Grab a coffee and chat with fellow founders in the lounge where a Workhaus member may be working on a submission right now.