Canada offers one of the best healthcare systems and funding ecosystems for startups and early-stage healthtech companies, both at the provincial and federal levels. With growing public demand for convenient digital services and over 90% of Canadians calling for better healthcare innovations, the Government has allocated resources to fund businesses that offer impactful solutions. This is because healthcare and healthtech innovation often requires substantial capital for R&D, clinical trials, product development and testing, and regulatory approval.
In addition to Government funding, other hidden funding opportunities can support early-stage research, the development of new medical devices and products, and public health-focused initiatives. Therefore, if you’re a healthcare innovator looking for the best funding opportunities in Canada, this guide is for you.
R&D Tax Credits
R&D tax credits are among the best opportunities for healthcare and biotech companies, as they can help offset research costs and fuel innovation and experimentation. These credits are typically used for R&D activities such as experimental drug development and testing, clinical trials, laboratory testing, medical device prototypes, and more.
However, qualifying for these credits is not straightforward, and challenges often arise in distinguishing R&D from clinical applications. According to the Boast’s recent 2026 R&D Tax Credit Benchmark Report, the healthcare and biotech industry faces 14.11% higher scrutiny during audits than other industries, yet claims only 2.4% of tax credits. Also, to qualify for the credits, biotech companies must maintain a separate record of research-phase activities, distinct from clinical implementation, regulatory compliance, and patient care.
According to Imad Jebara, CEO of Boast, “We’re still seeing significant untapped potential in fast-growing innovation markets like the US and Canada, where many companies have yet to fully capitalize on government incentives.”
Angel Investors
For healthtech startups, angel investors play a crucial role in securing pre-seed and seed funding to turn their ideas into viable products. Unlike venture capital firms, angel investors are typically industry veterans, clinicians, doctors, or previous founders who invest in businesses at the riskiest stage. These investors not only provide capital for early research and development but also offer industry expertise and connections, which are crucial to success in this highly complex industry.
Therefore, early-stage healthcare startups that offer impactful solutions, expertise, credibility, clinical relevance, and technical validation are often more likely to secure funding from angel investors.
Government Grants & Contributions
The federal government and several provincial governments offer several funding opportunities designed to support healthtech businesses in accelerating innovation and delivering impactful solutions. Key funding opportunities, such as the NRC IRAP, the Digital Health Innovation Fund, CIHR Project Grants, and Futurpreneur Canada, are offered by the Canadian government. Each of these programs has specific eligibility criteria that often relate to research, location, or stage of development.
Moreover, unlike bank loans, you are not required to pay it back or give up equity. So, if your business is in its early-stage research, developing an innovative medical device, or leading a public health-focused initiative, you can benefit from government grants to drive innovation that has an impact on the societal level.
As the healthcare ecosystem becomes increasingly advanced, the public is demanding better, more convenient healthcare services. To meet the demand, new healthcare and healthtech businesses are taking initiatives to offer better services and digital tools to the public. Fortunately, there are several funding options available to support their mission of providing better services to the common people.