Guideline: Administration of Direct Financial Support for Entrepreneurs & Startup Companies

The purpose of the Guideline for the Administration of Direct Financial Support for Entrepreneurs and Startup Companies is to create a framework for University of Toronto (U of T) divisions seeking to support entrepreneurial students, trainees and startups at U of T through the provision of direct funding in furtherance of U of T’s charitable purpose of the advancement of education. This guideline covers funds provided as part of initiatives such as competitions, pitch prizes, program completion or milestones, etc.

This funding encourages eligible applicants to develop creative proposals that require them to consider and analyze various aspects of their proposed business, including socio-economic benefits. Without limiting the areas of entrepreneurship support, typical use of the funds may include the following.

• Support for proof-of-concept prototypes
• Intellectual property (IP) protection
• Recruitment and compensation of team members
• Development of business models, market testing and related materials

Below are key elements of the Guideline.

Individual entrepreneurs and start-up companies that meet the following criteria are eligible to receive financial support at U of T.

1. Individuals must be current U of T students or trainees; in certain instances, recent alumni (within two years of graduation) may be considered eligible
2. Companies:
   
   1. The startup company must be a newly (less than 3 years) incorporated entity registered in the province of Ontario and/or federally registered in Canada
   2. The commercial products or services of the company are anticipated to enable socio-economic benefits to the public and be compatible with the academic and research mission of the university as a public institution
   3. The company must have a relationship to the university which could include any of the following.
      
      1. The company is based on U of T IP or other research and scholarly results, or the founders include a current U of T faculty, trainee, or student, or
      2. The founders include a recent (less than 2 years) U of T alumni, or
      3. The company is actively affiliated with a U of T-based entrepreneurship program (e.g., Centre for Entrepreneurship, Hatchery, UTEST, SICIEEIL, The BRIDGE, ICUBE, SpinUp, CDL-Toronto, H2i, InnovED, BFN)
3. The founding team has been encouraged to complete Level 1 or 2 of the U of T IP Education Program and/or U of T’s entrepreneurship courses
4. The individual or company receiving financial support must adhere to the University’s Inventions Policy, as applicable

Financial support is provided for entrepreneurship support purposes and is not expected to be associated with any exchange of goods or services, investment terms, equity, repayments, or any other commercial considerations. Funding amounts will be reasonable and not more than what is required in furtherance of U of T’s charitable purpose of the advancement of education. While there may be a report required of the recipient on the outcomes, there is no requirement for an accounting or financial report.

The value of any single award and/or any cumulative awards to one company or individual as it relates to a single venture / company shall not exceed $100,000.

Payments to a corporation will be administered through Financial Services. The university will not provide a tax receipt or other guidance as to how the company should administer or report on the prize funds.

Payments to individuals will be managed in accordance with University policies.

Prizes or other forms of financial support can be established at the following levels.

• University-wide (centrally): University-wide funding to be awarded to individuals or companies are to be approved in writing by the Vice President, Research & Innovation, and Strategic Initiatives (VPRISI) or designate
• Within a particular academic division: Proposals to establish funding in support of a particular academic division are to be approved in writing by the Dean (or designate) of the administering division and brought forward to the VPRISI (or designate), who will facilitate the university approval process

Funds that provide financial support from the University to an individual or company must undergo a transparent and multi-person adjudication process. Any academic division or unit administering such a fund must develop a process that is aligned with this Guideline and provide a report to the University of Toronto Entrepreneurship Management Committee including the details of any prize competition or other process to award such funds, the adjudication process, and outcomes.

For more information, please read the full Guideline for the Administration of Direct Financial Support for Entrepreneurs and Startup Companies .

• Guideline for the Administration of Direct Financial Support for Entrepreneurs and Startup Companies 

Support the administration of funding for U of T entrepreneurs and startups