Building a video game or XR project in Ontario is expensive. Talent costs are high. Production timelines are long. Provincial funding can cover a large share of those costs if you meet the right criteria. The Ontario Creates IP Fund — Interactive Content stream offers up to $500,000 for eligible video game and XR projects, making it one of the most important programs for studios in the province.
This guide breaks down how to qualify for video game and XR funding in Ontario, with a focus on the IP Fund and what funders actually look for.
The IP Fund — Interactive Content stream is run by Ontario Creates, a provincial agency. It supports Ontario companies that own and develop original intellectual property in:
The program supports two project stages:
To qualify for video game and XR funding in Ontario through the IP Fund, your business and project must meet all core requirements.
Your business must:
Individual developers are not eligible. The applicant must be a corporation.
Your project must:
Projects focused only on marketing or distribution do not qualify.
Only eligible Ontario expenses count toward the 50% funding cap. These typically include:
Costs incurred outside Ontario generally do not count.
Tools like GrantHub’s eligibility matcher can help you quickly confirm whether your expenses and project stage align with Ontario funding rules.
The IP Fund is competitive. Meeting eligibility does not guarantee funding.
Applications are evaluated on creative strength, market potential, team capacity, and economic impact in Ontario.
Not owning the IP
If your studio does not control the intellectual property, your application will be rejected.
Overstating non-Ontario costs
Only Ontario expenses count. Inflating budgets with out-of-province costs weakens your application.
Applying too early or too late
Pre-production and production funding are separate. Applying in the wrong phase is a common error.
Weak market rationale
Creative ideas matter, but funders also want to see a realistic path to market and revenue.
Q: How much funding can I receive for a video game or XR project in Ontario?
Funding ranges from $15,000 to $500,000, depending on project stage and scope. The program covers up to 50% of eligible Ontario costs.
Q: Is the IP Fund repayable?
No. The Interactive Content stream provides non-repayable grant funding.
Q: Do I need to be profitable to qualify?
No. Early-stage and growing studios can apply, as long as they meet company and project eligibility requirements.
Q: Can I combine the IP Fund with other grants or tax credits?
Yes. Funding can be stacked, but total public funding must stay within program limits.
Q: Does XR include VR and AR projects?
Yes. Virtual reality, augmented reality, and mixed reality projects are eligible under the XR category.
Qualifying for video game and XR funding in Ontario comes down to IP ownership, Ontario-based spending, and a strong commercial plan. The IP Fund is only one of several programs that may apply to your studio. GrantHub tracks hundreds of active grant programs across Canada—including interactive digital media funding—so you can quickly see which ones match your business profile.
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