Founder Fundamentals EP 09: Non-Dilutive Funding 101 with Jackson Lai

This week’s Founder Fundamentals session demystified one of the most misunderstood, yet mission-critical parts of building a startup: accessing non-dilutive funding. Led by Jackson Lai, Partner at BDO and an expert with 15+ years of product development experience across biomedical devices, life sciences, IT, and consumer electronics, the session broke down what every founder needs to know about grants, SR&ED, tax credits, and how to actually build a multi-year funding strategy that supports growth without giving up equity. Through lived experience, case-based explanations, and step-by-step breakdowns, Jackson showed founders how to use funding strategically, not reactively to extend runway, fuel innovation, and de-risk product development.

Why Non-Dilutive Funding Matters More Than Most Founders Realize

Jackson opened with a reminder that founders are navigating a highly dynamic landscape, from shifting markets and talent shortages to rising interest rates and rapid advancements in AI. Each of these factors increases uncertainty, making access to capital more important than ever for early-stage companies. But one specific insight stood out: “The government wants to help companies grow without taking equity.” - Jackson Lai

Unlike investors, government programs exist to strengthen Canada’s innovation ecosystem. That makes non-dilutive funding one of the most founder-friendly levers available if you know how to navigate the system.

The Biggest Challenge: Hundreds of Programs, Zero Clarity

At any given time, founders may face 200–300 government programs, each with different requirements, timelines, and focus areas. Jackson acknowledged how overwhelming this can be, especially when programs open and close unpredictably. To bring structure to the chaos, he introduced a simple framework founders can use immediately.

The “Bucketing Method”: Your New Funding Strategy Superpower

Instead of chasing individual grants, Jackson encouraged founders to categorize their expenses into buckets such as:

• Technology & R&D
• Hiring & Talent
• Market Expansion
• Sustainability
• Export & International Trade
• Productivity & Efficiency

This matters because different funding programs target different buckets.
For example:

• A program may fund hiring but not R&D.
• Another may fund technology but not commercialization.

When you speak the language of the grant, your chances increase dramatically.

Jackson emphasized that this mindset helps founders stop searching randomly and instead map their expenses to the funding that actually fits.

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Layering Strategy: Matching Funding to Your Startup’s Growth Stage

Building on the bucketing method, Jackson introduced the multi-year funding roadmap, a way of looking at your growth through the lens of:

• TRL (Technology Readiness Levels)
• Prototype development
• Commercial readiness
• Market expansion
• Export or scale

Each level “unlocks” new funding options very much like advancing levels in a game. The key takeaway is that funding isn’t a one-time event. It’s an evolving strategy that grows alongside your company.

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Grants vs. Tax Credits: What’s the Difference?

Many founders confuse the two. Jackson made it simple:

Grants

• Fund future work
• Often competitive
• Usually require pre-approval
• Add cash directly to your runway
• Can open or close throughout the year

Tax Credits (like SR&ED)

• Fund past work
• Claimed during your fiscal year
• Based on eligible activities already completed

These two categories work together to smooth cash flow and extend runway. That’s why timing and strategic planning matter immensely.

Jackson closed with a strong reminder: “There is money on the table, take it. But take it strategically.” - Jackson Lai

Instead of guessing or scrambling at deadlines, founders should build:

• A clear view of their development roadmap
• A bucketed breakdown of expenses
• A multi-year funding strategy
• A narrative aligned with government priorities

When founders pair consistent planning with the right advice, non-dilutive funding becomes a powerful driver of innovation, stability, and long-term growth.

About Founder Fundamentals

Founder Fundamentals is a 12-week workshop series hosted by YSpace and Black Enterprenurship Alliance and powered by City of Markham designed to equip you with essential entrepreneurial skills. Attend 9+ workshops to earn a Certificate of Completion and take the first step toward entrepreneurial success!