Entrepreneurial Investments: Alberta Digital Traction Program

Who can apply

We designed this program for Digital SMEs at the validating stage of their journey; it is highly recommended that applicants are not receiving funding from other Alberta Innovates programs at the time of application.

The ideal applicant will have:

1. a minimum viable product (MVP) to test with customers,
2. a minimum TRL 4 and at the Validating stage of development
3. not previously received Digital Traction funding,
4. performed preliminary customer discovery work to inform the development,
5. a digital technology employed in an innovative way and/or with proprietary features to allow for

a competitive advantage over existing solutions,

1. a digital technology that could scale up in one to two years, if successful,
2. no significant capital or regulatory barriers, not addressed by the project, that may be better

addressed by other funding resources,

1. completed a lean canvas, business model canvas, or similar tools to demonstrate an

understanding of the problem to be solved and the customer profile, and

1. a traction roadmap or similar tool to demonstrate customer acquisition targets for the next

three years and what is required to get to those targets.

Project activities are developed in an agile fashion or development sprint to achieve milestone outcomes. Once a milestone is completed, the next milestone may be adjusted based on previous learnings.

Applicant Eligibility

The Digital Traction Program is open to For-Profit Organizations In addition, to qualify for funding, the Applicant must:

1. Exist as a corporate person, with up-to-date corporate filings,
2. Be authorized to undertake the proposed project and execute a grant with Alberta Innovates on

our standard terms,

1. Not otherwise be prohibited from receiving Alberta Innovates funding, for instance due to a past

bad debt or otherwise not be in good financial standing with Alberta Innovates or its subsidiaries, InnoTech Alberta and C-FER Technologies,

1. Be incorporated in Alberta AND/OR incorporated in another jurisdiction and extra-provincially

registered in Alberta,

1. Be a General Partnership, Limited Partnership or Limited Liability Partnership and registered in

Alberta,

1. Companies must be Alberta-based with an Alberta footprint, which includes a significant

physical and corporate operational presence in Alberta; appropriate Alberta ownership; and discernible intent that operational benefits will flow primarily within the Province of Alberta,

1. Have fewer than 50 full-time employees, and less than $1,000,000 annual reoccurring revenue,
2. Have a founding team and/or advisors,
3. Demonstrate previous investment into the company by the founding team.
4. Clear our due diligence and risk screening as determined by Alberta Innovates in its sole

and unfettered discretion.

Please note: For Applicants that are not post-secondary institutions, Alberta Innovates may perform corporate, bankruptcy and litigation searches, and conduct other forms of due diligence on the Applicant company and its principals.

Project Eligibility

To qualify for funding, all Projects must:

1. Align with the objectives of the Digital Traction Program, including:
2. Project contains both business and technical activities/outcomes
3. Project moves the technology towards product/market fit
4. Projects grows measurable traction metrics
5. Have a Project Start Date at least forty-five (45) days from the application submission date,
6. Have the first milestone activities identified to a maximum of $15,000,
7. Have no more than three defined milestones based on business and technical outcomes to be

reached during the project term,

1. Be completed within a one-year term,
2. Comply with other criteria that Alberta Innovates may develop from time to time.

Assess your company for Alberta Footprint by reviewing the criteria noted below.

All companies must be incorporated in Alberta AND/OR incorporated in another jurisdiction and extra provincially registered in Alberta, OR be a General Partnership, Limited Partnership or Limited Liability Partnership and registered in Alberta.

Next, if you meet the following Alberta Footprint criteria you are an Alberta company that can apply to our program.

1. Over 50% total Alberta ownership
2. And over 50% Alberta employees (FTE, PTE, and Contractors)
3. And an Alberta Founder residing in Alberta as primary residence, where income tax is paid

If you do not meet the criteria above you may still be eligible and the following evaluation criteria will be used to assess your Alberta Footprint:

Alberta Footprint Evaluation Criteria for Entrepreneurial Investment Programs Location of main operations (operations, salaries, taxes, expenses, license, permits, assets, and capital flow) and head office.

Portion of physical assets based in Alberta if applicable to your business model.

Number of Alberta-based T4 employees currently employed by the applicant and percentage of total jobs in the company based in Alberta.

Taxable revenues, current and future, flowing back to Alberta.

Percent of Alberta Ownership as demonstrated on Capitalization tables and registration documents.

Due to unclear ownership and liquidity of shares, publicly traded companies are only eligible if significant Alberta ownership and control can be demonstrated. The Alberta ownership does not include Alberta investment firms that have investors from outside Alberta.

Number of Founders based in Alberta Connections to Alberta eco-system, industry, strategic partners, and resources to grow business in Alberta. Current and future growth in Alberta to promote jobs, economic growth, and benefit to Albertans.

Publicly identified as, and corporate messaging consistent with, being an Alberta company Collaborative support from other provinces on a large strategic win for Canada These criteria are considered together to determine if there is sufficient Alberta benefit.