The federal government is looking for accelerators and incubators to participate in its initiative to rejuvenate the Canadian venture capital market.

The National Research Council of Canada’s Industrial Research Assistance Program issued a request for proposals (RFP) Monday to solicit applications for funding support from business incubators and accelerators; which would, in turn, use these funds to support the growth and development of early-stage firms.

The deadline to submit a proposal is October 30, and the successful firms are to be announced in early 2014.

The latest federal budget promised $60 million over five years to help incubators and accelerators expand their services to entrepreneurs. The government says that the funding will support firms that promote: the development of investment-ready early-stage firms; increased services to innovative early-stage firms, such as mentorship and business plan development; and, stronger networks that link the recipients with other important innovation organizations, including other accelerators and incubators, public research institutions, investor networks and venture capital funds.

The initiative will provide funding over a five-year period in the form of non-repayable contributions (up to $5 million per firm) to a limited number of accelerators and incubators that meet certain eligibility and selection criteria. It will also work closely with the government’s Venture Capital Expert Panel, which is chaired by industry veteran Sam Duboc; in order to ensure that the contributions are market-driven and allocated according to private sector needs.

“Business accelerators and incubators are long recognized as crucial players in the venture capital system,” said federal finance minister Jim Flaherty, in a release. “These organizations bring entrepreneurs together and provide them with hands-on mentorship by successful innovators and access to specialized business services to develop their ideas and grow their businesses and the jobs of tomorrow. Graduates of these programs will be better prepared to attract customers, form strategic partnerships and secure private investment.”

This program forms part of the federal government’s $400-million overall effort to revive the venture market, which was first announced in the 2012 budget. (See Investment Executive, New measures to help boost venture capital, March 21, 2013.)