Canadian businesses today are struggling to find means of survival during this COVID-19 crisis. There have been appeals from all industries such as aviation, energy, agriculture, small businesses etc. for additional assistance given the current circumstances. This appeal has attracted any Canadian venture with a payroll to meet for a business they have poured their heart and soul into, not to mention their funds, trying to help survive.

Within this, Canadian innovation hubs and start-ups are some of the worst hit businesses. Public investment in these start-ups, however, is also a provider of a high return relative to the prosperity of Canada’s economic future.

The fundamentals of operating a start-up do not allow for any back-up plans or safety nets. The projects that these businesses work towards come at an expensive price tag and raising funds is always a continuous effort. They are heavily reliant on innovation grants as a means of nurturing provided for by the government. Start-ups are also subject to foregoing profits in return for business growth. These practices allow no room for saving funds for a rainy day. In fact, under the best of economic conditions, start-ups still require incubators and funding. Therefore, given current circumstances, they are now in need more than ever. In addition to their granted innovation funding, they now require additional financial support but also require time in order to make decisions and shift their operations to maximize their potential.

All start-ups exist and persist through start-up company grants with the goal of becoming a large and profitable corporation in the future. This goal cannot be met without nurturing even after which only a few survive. It is now, in a moment of crisis, that their survival should be assured the most.

In the city of Toronto alone, 10,000 jobs were added in the tech sector fueled by a record $3.1 billion investment in venture capital. Compelled by an industry that pays 51% more than the average private sector job, across Canada, over 60,000 employees are joining the same industry on an annual basis.

With their projects and innovation, these individual start-ups then contribute their technology to advanced industries which rely on their efforts to improve their processes such as energy, health, manufacturing etc. Cohesively, these industries contribute to 17% of Canada’s GDP and 11% of employment. This significant portion of the Canadian economy is threatened without providing start-ups with the support they require.

Start-ups are in high gear to secure as many deals as possible to keep their operations running and as many people on payroll as they can. Support right now is more critical than ever. This is the same topic that was addressed by more than 600 tech chiefs when they wrote to the federal and provincial governments advising them on the best practices to protect this industry.

Together, they were able to create the following suggestions to encourage increased support from the government.

  • The first suggestion was to fast-track any procedures and processes carried out by federal governing agencies as an attempt to get cash moving as soon as possible. For start-ups that are deemed fit, it was also suggested that low-interest loans by offered with the possibility to defer payments.
  • As an additional step to maximizing the current amounts of funding available, programs should be expediting payments and work on abolishing “stacking limits” which prohibit ventures from combining their funding from multiple programs.
  • During this time, governments should also be working towards allowing qualified start-ups to defer their employee income taxes, corporate taxes and rents to provide maximum liquidity to start-ups with their current assets
  • It was also recommended for governments to prioritize producing goods and services from domestic companies first such as enterprise technology providers, infrastructure companies, manufacturing firms and health tech firms in addition to other industries.
  • Lastly, it was suggested that provinces retain their innovation tax credits such as the Ontario Innovation Tax Credit, the Alberta Innovation Tax Credit etc. while encouraging Ottawa to provide reimbursements through the federal SR&ED program.

EVAMAX specializes in providing qualified companies their innovation tax credits. Contact EVAMAX today to see if your start-up qualifies to increase funds available to your start-up!

It is the start-up companies that thrive in disruption to provide products and services that help get the rest of the economy get above the curve. It will once again, be the strongest of the start-ups that survive and provide solutions to this catastrophic pandemic. For the same, the government should look to protect the start-up industry now more than ever. Here are some of the efforts the government is ready to support for start-ups related to COVID-19. These are some of the contributions start-ups have already made to help fight this virus.

As the world shifts towards the increased use of technology in everyday life, technology seems to be constantly improving to provide users with only the best experiences. From Smart TVs to even more advanced smartphones, technology is constantly improving. With this evolution of technology, mobile gaming is also an industry that has come a long way from its origin. Dating back to the 1990s, Nokia users were able to play the simplest of games such as snakes on their devices. Thanks to emerging technologies however, users today have the option of downloading any mobile applications of their choice, specifically any mobile game.

The mobile gaming industry globally is currently in it’s prime. With almost everyone having some version of a smartphone and due to the ease of access of these games, mobile games are becoming increasingly popular. Games such as Fortnite by Epic Games and PUBG by TenCent rake in over millions of dollars a month.

Specifically, the Canadian mobile gaming industry has also been excelling under these conditions. Some of Canada’s most popular mobile game developers such as Relic Entertainment and Big Blue Bubble have also been able to generate similar profits.

The added variety of mobile gaming has been of significant influence on the gaming industry in the country bringing in revenues of an estimated USD$857M in 2020 with USD$317M from the mobile gaming sector alone.

With the increased usage of mobile gaming in Canada, there is potential in this industry. Additional users each day and their feedback has contributed to Canada achieving the 25th position globally in overall mobile gaming experience compared to the US which is at 35th. Being the top 25 pushes Canada to strive for improvement and rank even higher in the coming years. Relatively, there are several efforts working towards the same goal.

The most significant effort stems from the increasing market for esports. Games such as Counterstrike have over 19 squads competing for prize money worth several million dollars. Players have been known to generate a following by playing and streaming their games on platforms such as Twitch and YouTube like Canadian steamer Sonja Reid also known as OMGitsfirefoxx. The greater the reach of these streaming platforms, the greater the excitement and energy behind it and the more likely viewers are to turn to playing themselves. In Canada, developers can continually create content to provide mobile gamers with engaging and exciting material to keep driving the market. This is also profitable for the Canadian government as it looks forward to the gaming industry to continue making significant contributions to the national GDP over the years.

The entertainment software industry contributed $4.5B to Canada’s GDP in 2019 alone and employs over 48,000 people which includes 27,700 directly working with video game companies.(https://www.newswire.ca/news-releases/video-game-development-industry-contributes-4-5b-to-canada-s-economy-850704435.html). This GDP contribution made by the gaming industry is only going to increase as advancement in video game development takes place. This industry focuses on innovation and research in order to develop new emerging technologies and intellectual property. Through research and development, gaming has expanded to smart phones, tablets, motion sensor gaming consoles and even cloud-based gaming. This development involves physics simulation, artificial intelligence, graphics acceleration and several other features that need to be simulated to create the ultimate gaming experience.

With the advancements so far, the industry is looking forward to providing its users with potential 3-D gaming and revolutionary simulations in the coming generations of consoles.

This product development is extremely well supported by the federal government of Canada. Innovation and R&D have always been supportive of such efforts and are available to all businesses to maximize. Such projects are especially eligible for the Scientific Research and Experimental Development tax program which rewards R&D efforts and funds similar projects. Applicants can expect to receive a tax credit, or a cash refund based on the qualifying expenditures of their SRED project. Provincial governments also fund such efforts on different levels such as the Digital Media Tax Credits offered in Ontario etc. through other innovation grants for all industries.

EVAMAX specializes in working with businesses to help prepare their SR&ED applications. They also have expertise in other federal and provincial support available to businesses. Contact EVAMAX today to see if your project qualifies!