FundingIndex: Government funding awards to businesses increase 58% in Q4 of 2014

TheFundingIndexTM: $14.43B in government funding and $2.36B in VC invested in 2014

FundingIndex Q4 2014















See how your sector performed by viewing the interactive version of TheFundingIndex »

Finding the perfect fit between your business and government funding programs may sometimes feel like searching for a needle in a haystack, but new data show that the rewards are in the billions for Canadian companies. Throughout 2014, businesses secured $14.43B from government funding programs, with Ontario emerging as the top province and manufacturing as the top sector.

Following a slight downturn in Q2 and Q3, government incentives flowed again to businesses in a big way during the final quarter of 2014. Overall, government funding awards increased by 58% between the third and fourth quarters of 2014.

“Despite a temporary decline in awards in the second and third quarters of 2014, government funding still had a year-over-year rise increase in 2014 due to the jump in funding for manufacturers in Q4,” said Funding Portal President and CEO Teri Kirk. “These markets tend to be symbiotic: venture capital declined slightly in the last quarter of 2014 and government funding surged – providing the stimulus and corrective measures that can render this money very vital to select industries and region, as captured in the Index and accompanying infographic.”

The Q1 2015 edition of TheFundingIndex will be released in mid-September 2015 and for the first time ever, will provide data on industrial incentives in both Canada and the United States.


  • Manufacturers secured the highest levels of government funding in the final quarter of 2014 ($993M), as well as throughout the year ($3.14B).
  • The health and life sciences sector ranked second in Q4 with $571M in funding secured ($1.84B in 2014).
  • Tech and digital media ranked third with $276M in Q4 ($1.32B in 2014).
  • Q4 was a slow quarter for cleantech, with $109M secured ($407M in 2014).


  • Businesses in Ontario attracted the highest levels of awards in Q4 ($2.4B), as well as during 2014 overall ($7.1B).
  • Quebec attracted the second highest level of awards in Q4 with $896M ($3.1B in 2014).
  • C. ranked third with $238M in Q4 ($958.6B in 2014).


  • Investments hit $736M in Q4, largely attributable to investments in Canada’s thriving tech and life sciences sectors. This is a slight decrease from investments levels in Q3, which reached $745M.
  • The tech sector attracted the highest level of VC investment in Q4 with $405M (1.45B in 2014).
  • The health and life sciences sector ranked second with $570.5M invested (1.8B in 2014).
  • VC support reached $2.36B in 2014, a 21% increase from 2013 levels.
  • Ontario businesses secured the highest levels of VC investment in Q4 with $345M, compared to Quebec with $210M, and B.C. with $166M.
  • Later-stage investments continue to be the norm with $1.3B invested in 2014, compared to $602M in seed and early-stage companies, and $466M in expansion stage businesses.


TheFundingIndexTM is the first clear picture of how industrial incentives are distributed by region and industry sector. It is published every quarter through The Funding Portal’s networks and in The Next Million Magazine, a collaboration between KPMG and The Globe and Mail. Compiled through a wide array of sources, TheFundingIndex measures incentives paid by federal, provincial and municipal governments through more than 4,500 programs.



Fundingportal leverages innovation to help businesses, nonprofits, and municipalities like yours to get grants and funding.

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