After approval

Why IRAP Proposals Get Rejected

Most IRAP funding requests that don’t succeed miss one of NRC’s published assessment factors, or run into budget limits. Knowing which gap you have tells you what to fix.

ShoutEx Team · Data checked September 26, 2026
Find the gap, fix it, come back.IRAP Funding for B2B SaaS · Data checked September 26, 2026
34%
Share of firms reached by IRAP in 2017–18 to 2021–22 that received funding (7,717 of 22,458)
6
NRC assessment factors a proposal must answer
13,699
Firms that received advice without funding in the same period

Why do IRAP proposals get rejected?

IRAP proposals usually don’t succeed because the project lacks a real technical challenge, the company can’t show capacity to fund and deliver it, the commercialization plan is vague, or regional budget is limited. Some work was already done or isn’t R&D. Each maps to a factor NRC publishes, so each can be diagnosed.

How many companies get funded?

Not every company that works with IRAP receives funding, and that is normal. NRC’s evaluation for 2017–18 to 2021–22 counted 22,458 firms reached and 7,717 funded, about a third; 13,699 received advice without funding. A no on funding often still comes with useful advice.

IRAP reach and fundingUnique firms, fiscal years 2017–18 to 2021–22
MeasureFirms
Reached with advice or funding22,458
Received funding7,717
Advice without funding13,699
Source: NRC, Evaluation of the NRC’s Industrial Research Assistance Program, fiscal years 2017–18 to 2021–22. The funded share is our calculation from these figures.

See the NRC IRAP evaluation.

What are the common gaps, and the fixes?

The common gaps line up with NRC’s assessment factors. Use the table to find yours and the fix to work on before the next conversation with your advisor, so you return with evidence rather than the same proposal.

GapSignFix
No real technical challengeWork is routine development or integrationReframe around the genuinely uncertain part, or wait for one
Weak capacityNo clear way to fund your share or manage the projectShow funding, cash flow and a project lead
Vague commercializationNo named customers, pricing or sales planAdd customer evidence and a go-to-market plan
Unclear milestonesDeliverables described in adjectivesMeasurable milestones with dates
TimingWork already under way or finishedScope the next phase before starting it
Budget limitsStrong project, limited regional fundsAsk your ITA about timing and project size

What should you do after a no?

Ask your ITA directly what would have made the proposal fundable, and whether a smaller or later project could fit. Fix the specific gap, keep working with the advisor, and come back with evidence of progress. Many companies are funded on a later, better-scoped project.

Founder rule

Ask what would make it a yes.

The most useful sentence after a decline is ‘What would a fundable version of this look like?’ Ask your ITA, then build that.

Are there alternatives while you fix it?

Alternatives include SR&ED tax credits for eligible R&D, federal procurement programs, and export support, and some of them don’t depend on an advisor’s invitation or a regional budget. See IRAP vs SR&ED, stacking IRAP with other funding, and export support in the Canadian Startups guide.

This page is general information, not financial or tax advice. Confirm details with your ITA and your accountant.

Frequently asked questions

Why was my IRAP funding request declined?

Usually a gap in NRC’s criteria: technical challenge, capacity, commercialization plan, milestones or timing, or limited budget.

How many companies get IRAP funding?

NRC’s evaluation counted 7,717 funded firms out of 22,458 reached from 2017–18 to 2021–22, about a third.

Can I try again after being declined?

Yes. Fix the specific gap, keep working with your ITA, and return with evidence of progress.

Does IRAP give feedback?

Ask your ITA directly what would make the project fundable.

Is budget a reason for rejection?

It can be. IRAP funding is discretionary and depends on available budget.

What can I use instead of IRAP?

SR&ED tax credits, federal procurement programs and export support, depending on your project.

Sources & further reading

Program rules, timings and figures come from NRC and CRA pages, checked on the date shown. Your contribution agreement and ITA have the final word.