In 2025, non-dilutive funding (NDF) is anticipated to support a wide array of innovations across sectors critical to Canada’s future. In this election year, potential shifts in federal leadership may bring some surprises, but based on our team’s experience in the NDF space, several trends are expected to persist regardless of political change.

As raising capital remains challenging in current markets, NDF serves as a more attractive option for founders than ever before. Securing NDF not only provides valuable financial support but also acts as a due diligence signal to external investors, validating technologies through endorsement from alternative funding sources such as government, industry, and academic organizations. 

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Based on our expertise, we believe Health Technology (HealthTech), Agriculture Technology (AgTech), Homebuilding Technology, and Artificial Intelligence (AI) innovations are the sectors to watch in the coming year. These sectors not only reflect Canada’s most pressing challenges but also demonstrate the impressive resilience of innovation in addressing both global and local priorities. In this annual blog, we will dive into each sector and highlight the insights of Thin Air Labs’ Funding Catalyst team members to provide a subjective look at the opportunities we anticipate in 2025. 

Based on our expertise, we believe Health Technology (HealthTech), Agriculture Technology (AgTech), Homebuilding Technology, and Artificial Intelligence (AI) innovations are the sectors to watch in the coming year.

Health Technology: Innovations in Aging 

HealthTech continues to evolve rapidly, with innovations aimed at improving quality of life for our aging population leading the way. Canada’s demographic shift towards an older population highlights the need for solutions that enhance care, independence, and health outcomes for seniors. These trends are tightly linked to age-related technologies, which will likely remain a funding priority in 2025.

“In 2025, we can expect to see an increase in funding opportunities focused on aging innovations,” says Funding Catalyst Kristina Komarek. “From assistive technologies to digital health platforms that support home care, the emphasis will be on solutions that alleviate strain on our healthcare system while empowering individuals. NDF programs will likely prioritize scalability and cross-sector applications of these technologies, particularly those that integrate well with existing healthcare infrastructure.”

“From assistive technologies to digital health platforms that support home care, the emphasis will be on solutions that alleviate strain on our healthcare system while empowering individuals." - Kristina Komarek, Funding Catalyst

Two programs leading the charge are envisAGE and NRC’s Aging in Place Challenge. envisAGE focuses on creating a collaborative ecosystem to encourage innovation in age-friendly technologies and services. The Aging in Place Challenge program provides targeted support for solutions that enable seniors to live independently in their homes longer. 

Agriculture and Food Technology: Adapting to Climate Change 

AgTech and FoodTech are set to take centre stage as climate change continues to impact agricultural productivity and sustainability across Canada. As food security becomes a growing concern, there is a common call for innovators to race to develop solutions that address water management, soil health, and crop yield optimization.

“With climate change continuing to cause unprecedented challenges, AgTech solutions that focus on sustainability and efficiency are likely to capture significant attention from funders,” explains Funding Catalyst Dr. Ania Sergeenko. “Programs supporting advancements in precision agriculture, regenerative practices, and innovative biotechnology approaches are likely to expand. NDF in this sector is anticipated to reward projects that reduce environmental impact while maximizing productivity for farmers.”

“With climate change continuing to cause unprecedented challenges, AgTech solutions that focus on sustainability and efficiency are likely to capture significant attention from funders,” - Dr. Ania Sergeenko, Funding Catalyst

The Canadian Food Innovation Network (CFIN) FoodTech Next Challenge, expected to open in late February 2025 for applications, is an example of this proposed funding trend. Additionally, CFIN’s Innovation Booster offers valuable support for SMEs to overcome barriers to innovation and scale their FoodTech solutions. 

Homebuilding Technology: Tackling Canada’s Housing Crisis 

Canada’s housing shortage continues to drive demand for innovative homebuilding technologies. In 2025, advancements in modular housing, sustainable construction materials, and digitalized project management tools are expected to take centre stage. These innovations aim to increase the speed, affordability, and efficiency of housing construction to address the critical gaps in Canada’s housing supply. 

“Homebuilding innovation is essential for solving our housing crisis," says Dr. Austyn Matheson, our newest Funding Catalyst team member. “We anticipate funding to support technologies that streamline construction workflows, enable eco-friendly practices, and scale modular housing production to meet demand. Programs will likely prioritize projects and solutions that deliver both affordable and energy-efficient homes.” 

“Homebuilding innovation is essential for solving our housing crisis...We anticipate funding to support technologies that streamline construction workflows, enable eco-friendly practices, and scale modular housing production to meet demand" - Dr. Austyn Matheson, Funding Catalyst

Recently, several funding bodies have stepped up to back these priorities. The DIGITAL Supercluster has launched initiatives supporting smart construction tools and data-driven building processes. Additionally, the Regional Homebuilding Innovation Initiatives (RHIIs) from PrairiesCan, FedDev Ontario, and PacifiCan are providing targeted funding to accelerate innovation in modular construction and sustainable housing solutions across Canada. These programs aim to encourage regional expertise and boost homebuilding capacity in critical areas.

Artificial Intelligence: Regulation and Cybersecurity 

Artificial intelligence (AI) applications continue to persist across every industry, but 2025 will likely see an increased focus on AI applications in cybersecurity and regulation. As businesses continue to incorporate AI-driven workflows into their operations, safeguarding data and ensuring compliance with evolving regulations will be extremely important. Additionally, the continuation of RAII (Responsible AI Innovation) programs will motivate sector-agnostic applications and integration of AI technologies. 

“AI funding in 2025 will centre around ensuring trust and security,” predicts Funding Catalyst Andrew Black. “Innovative solutions addressing AI bias, enhancing transparency, and developing cybersecurity solutions to protect AI-enabled systems will be a major priority. Further, funding bodies will likely look for solutions that balance innovation with responsibility, especially as regulations catch up with AI’s rapid enhancement.”

“Innovative solutions addressing AI bias, enhancing transparency, and developing cybersecurity solutions to protect AI-enabled systems will be a major priority." - Andrew Black, Funding Catalyst

Federal funding bodies, including NRC-IRAP, have supported these efforts with initiatives such as the AI Assist program. This program provides SMEs with tailored support for AI projects, covering every stage from concept validation to implementations. Initiatives like these directly highlight Canada’s commitment to ensuring that AI is adopted both responsibly and competitively, a priority that will grow with increasing regulatory attention in 2025. 

Looking Ahead 

Regardless of the results of the federal election, the recurring need for innovation in these sectors confirms that HealthTech, AgTech, Homebuilding Technology, and AI will remain high on funding body agendas. At Thin Air Labs, our Funding Catalyst team continues to track and adapt to these trends, supporting founders navigating the complex world of non-dilutive funding to turn their growth goals into reality. 

Stay tuned as we share more insights throughout the year, and don’t hesitate to reach out if you are exploring funding opportunities in these or other sectors.

To learn more about how founders are succeeding with non-dilutive funding with the help of our Funding Catalyst team, explore our Case Studies.

Also, be sure to sign up for our monthly Funding Catalyst Newsletter here to stay updated on the latest funding opportunities and trends.

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