FAQ’s

General Questions

Muskoka 4.0 is one of the largest sources of funding for early-stage startups in Ontario. It’s easy to apply. It’s less onerous than other types of debt/equity funding – we do not ask for a seat on your Board, for example. It’s also an opportunity to root your business within a growing entrepreneurial hub surrounded by a community of mentors, collaborators, and resources. Muskoka 4.0 Startups receive $250,000 and access to an ecosystem of resources – from innovation centres and incubators across Ontario – to support and help grow their business.

Muskoka 4.0 is a non-profit organization. We are committed to investing the returns on all our investments, which currently totals $16M, back into funding early-stage technology startups. Our “return on investment” is the success and growth of our portfolio companies and their impact on the Muskoka region, and any other Ontario community where they have a presence.

Muskoka 4.0 Startups have five obligations they must agree to in order to receive our $250,000 investment:

  1. Locate or relocate the business operations and headquarters to Muskoka for at least one year
  2. Commit 51% of the full-time founding team or one full-time founder and one full-time employee to live in Muskoka for at least one year.
  3. Establish an office in Muskoka or secure a membership to a co-working space in Muskoka for at least one year.
  4. Dedicate time to serve on the judging or “Power Panel” for the next round of the Muskoka 4.0 Startup Competition.
  5. Provide the Muskoka 4.0 team with data regarding jobs created, revenue generated and follow-on capital attracted. We will collect this information biannually as long as the business is in operation.

Muskoka 4.0 has funded 2 companies since our first Competition in 2019. Both companies are still in operation and choosing to maintain operations in Muskoka. Muskoka 4.0 supports our portfolio companies with access to mentorship, help to secure follow-on capital, assistance hiring key talent, and access to our robust network of connections in the Muskoka community and beyond for business development. All Muskoka 4.0 Companies are connected to a regional innovation centre or incubator of their choice. (We insist.) In addition, Founders and companies within the Muskoka 4.0 portfolio are readily available to newer startups for peer-to-peer learning and connections. Here is what our Startups have to say:

“Winning the Muskoka 4.0 Startup Competition has changed the trajectory of our business, without a doubt. We’ve hired and we’re hiring again. Over the past 12 months, we’ve been able to make key improvements to our products, reach new partners and secure additional funding that would not have been possible without the support of Muskoka 4.0. I know they are looking for a return on their investment, but it feels different – it’s more than that. I feel that they care about our success, and they understand what we need to scale. And that feels good.” — Wayne Li, Founder and CEO, NextUp Care.

“The investment is substantial and less onerous than many other funds we’ve looked at – Muskoka 4.0 doesn’t ask for a seat on the Board. It’s very fair. It’s very transparent — the application process was straight forward. We’re grateful for the continued mentorship from MaRS and we remain connected to their vital ecosystem – while being able to access capital, partners and support here in Muskoka. It’s truly a nesting environment – not just for my venture, but also for my family.” — Craig Crawford, Co-Founder and CEO, Rolldog.

We’re on a mission to change the world – and our community – for the better. It’s a tall order. We know we can’t do it alone. That’s why we’re building a community that supports the bravest and boldest Ontario entrepreneurs. Our model is an aggressive effort to fill a gap in Ontario’s startup innovation ecosystem: a lack of access to early-stage capital.

And we know that innovation doesn’t happen in a vacuum – we’re reaching out to other communities and to innovation centres and incubators across the province and we require that to be eligible for our $250,000 investment, companies must be (or must intend to become) a client of a regional innovation centre or incubator.

Our ultimate return on investment is future rounds of Muskoka 4.0 – we are committed to re-investing the returns on all our investments through the Muskoka 4.0 Startup Competition, back into early stage tech ventures in Ontario.

The Muskoka 4.0 Startup Competition is managed by the Muskoka Community Futures Development Corporation. The $250,000 investment represents the returns on Muskoka Futures’ entire $16M investment portfolio.

Beginning in 2021, Muskoka 4.0 will also begin accepting donations from individuals, corporations and foundations that want to join us in our mission to connect and support Ontario’s bravest and boldest entrepreneurs.

Prospective applicants may email our Competition Manager, Jodi Chapman-Good, at jodi@musokafutures.ca. If you are interested in supporting our mission, email david@muskokafutures.ca; or for general questions email hello@muskoka4point0.ca.

Competition and Format

The Muskoka 4.0 Startup Competition accepts applications once annually. The 2021 application window opens October 1st and closes October 31st.

  • October 1: First Round Applications Open
  • October 31: First Round Applications Close
  • November: Shortlisted Companies Announced / Interviews
  • December: Finalists Announced
  • January – February 2022: Due Diligence & Term Sheet Negotiations
  • March 31, 2022: Finalist Pitch Day – Winner Announced
Round 1:

Qualified applicants will have their applications reviewed and evaluated by the selection committee. Shortlisted applicants will do a preliminary pitch and be interviewed by the selection committee in November 2021.

Round 2:

Based on pitches and interviews of shortlisted applicants the selection committee will determine which applicants are selected as finalists.

One important thing that sets Muskoka 4.0 apart is that we do all our due diligence and term sheet negotiation up front to flow funding quickly. Companies at this stage will be invited to complete Due Diligence and Term Sheet Negotiations. This will happen between December 2021 and January 2022.

Round 3:

Companies that successfully complete the due diligence and term sheet negotiations are invited to participate in the Finalist Pitch event that includes a live-pitch followed by Q&A with the 2021 Power Panel. Finalists are then evaluated in real-time by a group of dedicated investors, entrepreneurs and industry experts who lend their expertise and experience to Muskoka 4.0, and who are members of the Muskoka Futures CFDC Board of Directors. The winner of the 2021 Muskoka 4.0 Startup Competition will be announced during this event, following the deliberations of the Board of DIrectors.

Please note that in 2020, our Finalist Pitch Event was held virtually, and may be held virtually or in a hybrid format in 2021/2022 depending on public health guidance regarding the Covid-19 pandemic.

Applicants will be shortlisted using the following criteria, equally weighted:

  • Business viability and scalability
  • Strength of Founder team
  • Alignment with Muskoka 4.0 sector priorities (clean tech, health tech, social innovation, digital transformation, SAAS and AI)

Shortlisted applicants will do a preliminary pitch and be interviewed by the selection committee in November 2021.  Following the interview, successful applicants will move forward to the due diligence stage. These shortlisted companies will be announced as “Semi-Finalists” in November 2021.

The Muskoka 4.0 Startup Competition invites Muskoka CEO’s, industry experts, angel investors, entrepreneurs and past Muskoka 4.0 winners (Founders) to serve on a Power Panel that asks questions and offers observations and insights to our Finalists following their pitches. Ultimately, it is our Competition Committee — made up of members of the Board of the Muskoka Futures Development Corporation — that will determine which company (or companies) should be awarded the Muskoka 4.0 $250,000 investment.

All submissions will receive notification of their outcome by November 2021. Those chosen to proceed to the next round of the Competition will receive specific instructions on next steps.

Applicants will not be informed of which judges review their application. Power Panel participants may reach out to applicants after the review process to offer their support, feedback, or guidance, but this is not guaranteed.

Finalist Pitch Day is the day that Finalists are invited to Muskoka to pitch live in front of a panel of judges and our Power Panel. A winner will be announced on this day, at the Pitch event. During this time, Finalists will have the opportunity to meet with the Competition Committee and network with the Power Panel and previous Muskoka 4.0 winners (Founders).

Please note that in 2020, our Finalist Pitch Event was held virtually, and may be held virtually or in a hybrid format in 2021/2022 depending on public health guidance regarding the Covid-19 pandemic.

Yes, the Finalist Pitch event is open to the public. Attendees will include evaluators from the Competition Committee, members of the Muskoka 4.0 Power Panel, Muskoka Futures Board of Directors and Staff, and select invited guests. Finalists may invite team members to observe their company pitch, but no Finalists are permitted to view other pitches.

Finalists will have 10 minutes to pitch and 10 minutes for Q&A in front of a 6-member Power Panel. The Competition Committee will observe from a separate location. It is recommended that finalists will practice presenting their presentation deck and pitch during a pitch-practice session the week prior.

Muskoka 4.0 and Muskoka Futures will not broadcast applications to the public, however we use a third-party firm, with confidentiality agreements in place, to perform due diligence. We recommend to all applicants that they not share confidential information including trade secrets and intellectual property in their application or supporting materials.

Muskoka 4.0 and Muskoka Futures limit access to submitted application information to its staff, due diligence team, competition committee, judges, and Board of Directors. Competition judges are seasoned professionals who are accustomed to dealing with confidential materials on a regular basis. While Muskoka 4.0 and Muskoka Futures requests that all volunteer judges keep your information confidential, judges are comprised of a wide swath of technical experts, entrepreneurs and sector experts, and Muskoka 4.0 and Muskoka Futures cannot make any guarantee of confidentiality. We therefore ask that applicants not include any information in their application that they feel to be highly confidential, including trade secrets, intellectual property and/or other confidential information.

Competition Eligibility

  • For-profit entities with technology-based products, services or solutions.
  • Right now, we are focused on: Clean tech, health tech, social innovation, digital transformation, SAAS and AI
  • Scalable business models
  • Early-Stage companies (includes Bootstrapped, Pre-Seed, and Seed Stage)

Muskoka 4.0 does not consider applications submitted by non-profits, although for-profit and hybrid-models social ventures are encouraged to apply.

Muskoka 4.0 is ideal for startups in their early-stages where $250,000 and wrap-around support services will make a significant impact on the business. All applicants must be (or commit to becoming) incorporated as a for-profit entity, and we recommend applicants have made some progress in proving their concept, which may include a prototype or minimum viable product.

Muskoka 4.0 is industry agnostic and we encourage startups from all tech-enabled industries to apply. However, in 2021, Muskoka 4.0 determined that the following areas best align with our priorities:

  • Clean tech
  • Health tech
  • SAAS
  • AI
  • Social Innovation
  • Digital Transformation

And we’re proactively interested in investing the following industries:

Agricultural technology, biotechnology, business-to-business products, business-to-business services, civic technology, clean energy, consumer products, consumer services, cyber security, education technology, enterprise software, financial technology, food, geospatial technology, hardware technology, health care, information technology, life sciences, logistics and transportation, medical devices, mobile applications, regulatory technology, social venture, and sustainability.

Preliminary Judges and the Competition Committee will review the following criteria, which will be weighted equally:

  • Business viability and scalability
  • Strength of Founder team (The team’s experience and capability to execute on the business initiatives in the near-term)
  • Alignment with Muskoka 4.0 sector priorities (clean tech, health tech, social innovation, digital transformation, SAAS and AI)
  • The Company’s interest and ability to contribute to the Muskoka ecosystem (establish a presence for at least one year, including at least one full-time Founder and one full-time employee).
Note: At least one Founder is required to work full-time on the business – this is a requirement to be eligible for the Muskoka 4.0 $250,000 investment.

No, not at all. Muskoka 4.0 encourages startups from all over Ontario to apply for the Startup Competition. So far, 100% of our finalists and awarded companies are based in the GTA, Waterloo or Kingston-Ottawa corridor.

All awarded companies will be required to relocate to Muskoka for at least one year. This includes the business headquarters, significant operations, and 51% of the Founding Team — or 1 Founder and one employee (this could be a new hire after the investment is awarded).

Muskoka 4.0 encourages applicants to apply using their most compelling business idea. However, if you believe you are on the founding team of more than one startup that should be considered in the Competition, this is allowable but needs to be disclosed in your application.

If you are selected to receive our $250,000 investment, you will need to be located in Muskoka, full time. Exact timing and dates are negotiable.

Yes, applicants are required to disclose all sources of funding already received and/or committed in the application process.

Entering the Competition

You may save a draft of your application and make updates prior to the application submission date and during the open application window (October 1st – 31st, 2021). After you have submitted your application and/or the application window closes, you may not make updates to your application. If your startup hits significant milestones that were not included in your original application, please email tyler@muskokafutures.ca with your updates. For example, releasing your beta product is a significant milestone we’d want to know about; recasting your financials for year five would not be significant.

We recommend using the following structure:

  • Identification of Problem
  • Solution/Technology
  • Competition
  • Market Opportunity
  • Go-To-Market Strategy
  • Business Model/Current Traction
  • Financial Projections
  • Management Team
  • Product Development Timeline
  • Proposed Use of $250,000 Muskoka 4.0 investment

We’re happy to provide you with more specific guidance on your application here: Entry Guidelines.

Program and Incubation

This will be negotiated up front, during Term Sheet negotiations. Muskoka 4.0 funded companies are required to provide basic reporting information on an ongoing basis, so long as the business is in operation. This information helps us track how our businesses do in the short and longer term. We do not ask for proprietary information or trade secrets.

Yes, we help Founders relocate their business and team to Muskoka. We can recommend locations, companies and services to help with the transition.

Yes, we expect that Muskoka 4.0 Companies may pursue fundraising after receiving our investment, and Muskoka 4.0 will support these efforts with preparation assistance, mentoring, connections to the local, provincial and national investment community, and an opportunity to participate in investor events that we sponsor – such as the CIX Digital Summit through the Canadian Innovation Exchange.

Yes, companies may attend an accelerator or incubator that is located elsewhere in the province of Ontario, as long as it does not impact their business location or Founder location (full-time) in Muskoka.

Absolutely. In addition to our $250,000 investment, Muskoka 4.0 Companies receive:

  • Pro bono and discounted professional services through our Angel Vendors and travel and leisure partners
  • Access to venture capital and angel investment networks
  • Professional and high-level business mentorship through Ontario Regional Innovation Centres and/or Incubators
  • Personal introductions to strategic business leaders and potential customers
  • Social support and community integration services
  • Inclusion as part of a community of innovative entrepreneurs that share a love for Muskoka

As a Muskoka 4.0 Company, you are required to have a presence in Muskoka. You can obtain this presence through a co-working membership to any of the following locations:

Startups will need to provide proof of their business location in Muskoka in the form of a lease agreement, co-working membership or other business license.

Yes, Muskoka 4.0 awarded companies must be based in Muskoka, and 51% of the Founding Team (or 1 Founder and one full-time employee) need to reside in the area full-time. This will all be negotiated and agreed to up front in December 2021 and January 2022, during Due Diligence and Term Sheet Negotiations.