Raising capital at the seed stage is challenging. Traditional grants often stop at research and development, while most venture capital expects more traction than you may have. The MaRS Investment Accelerator Fund (IAF) helps fill this gap by offering repayable funding to Ontario startups that are close to selling their products and aiming for large markets.
This guide explains how the Investment Accelerator Fund works, who it is for, and how to approach the application with confidence.
The Investment Accelerator Fund is a repayable capital program run by MaRS Discovery District in Ontario. It supports early-stage technology companies that are moving from building their product to finding customers and growing.
Key facts about the program:
Unlike non-repayable grants, the Investment Accelerator Fund asks companies to pay the money back if they succeed, so MaRS looks for startups with strong commercial potential.
Before you apply, make sure your startup meets the main requirements. MaRS is selective, and most rejections happen because companies apply too early or outside the program’s focus.
Your business must generally have:
Ontario presence
Your company must be based in Ontario or have most of its team and activities in the province.
Technology-driven product
Eligible sectors include:
Close to commercialization
This means you should have:
Large market opportunity
MaRS looks for companies aiming at a market worth at least $100 million. This is a guideline, not a strict cutoff, and should be supported by research showing the total value of customers who could buy your product. The term “addressable market” means the group of potential customers your product or service could realistically reach.
Ambitious founding team
Reviewers want founders who plan to build a company that can grow quickly and serve many customers, not just a small business.
Tools like GrantHub’s eligibility matcher can help you check if your startup fits programs like the Investment Accelerator Fund before you spend time on an application.
The MaRS Investment Accelerator Fund application is more like an investor review than a simple grant form. Be ready for careful checks.
Typical steps include:
Initial screening
You send basic information about your company, technology, and the market you plan to serve.
Detailed assessment
If you pass the first stage, MaRS may ask for:
Note: A “cap table” is a simple list showing who owns what percentage of your company.
Commercial and technical review
MaRS reviews your market size, what makes your company different, and how you plan to succeed.
Investment decision and terms
If approved, you receive a repayable investment. Repayment is based on your company’s future success, not fixed monthly payments.
Because this is repayable funding, MaRS pays close attention to your ability to grow sales over time.
Apply when you have early traction
Wait until you have a working product and some proof that customers are interested.
Show your market research
Explain how you measured your market size and why your company can win customers.
Treat it like an investment pitch
This is not free money. Be ready to answer tough questions about your business model and growth plans.
Consider other funding programs
Many strong applicants combine IAF with programs like SR&ED or Ontario wage subsidies to make their money last longer.
Q: Is the MaRS Investment Accelerator Fund a grant or a loan?
It is a repayable investment, not a traditional grant or a regular bank loan. Repayment depends on your company’s success.
Q: How much funding can my startup receive?
Successful companies usually receive up to $500,000 in investment, depending on their stage and needs.
Q: What does “close to commercialization” mean?
You should have a working product and some early customer interest, such as pilot projects or first sales. Companies with only an idea are usually not a fit.
Q: Can I combine the Investment Accelerator Fund with other grants?
Yes. Many startups use IAF funding together with programs like SR&ED, IRAP, or provincial hiring incentives, as long as you do not claim the same costs twice.
Q: Do I need to be part of MaRS to apply?
You do not need to be a MaRS resident, but MaRS usually works closely with companies they fund.
The MaRS Investment Accelerator Fund is best for Ontario startups that are ready to grow and can show real progress in finding customers. Having strong market research and a believable growth plan will help your application stand out.
GrantHub tracks hundreds of active startup funding programs across Canada — including repayable funds, accelerators, and grants — so you can compare options that fit your company’s stage and sector.
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