These startups often have game-changing ideas, which if realised, could help to differentiate them from their competitors enabling them to achieve rapid, high, sustainable growth. However, in these challenging financial times, accessing R&D funding to create innovative products, processes, and services via investments (e.g., venture capitalists, business angels) or bank loans can be very challenging due to the risk of development failure resulting in financial loss. Further, investors are more cautious in the current post-covid, uncertain market climate. 

There is good news however! Government funding agencies recognise well that organisations need to innovate to compete though added-value offerings (rather than just competing on cost, quality, and good customer relationships). Substantial funding for R&D is made available from the following sources:

UK Research and Innovation (UKRI) – (a non-departmental public body of the Government funded through the science budget of the Department for Business, Energy and Industrial Strategy, BEIS). There is a total budget of £25.1bn for the financial years 2022-2025. Many of these funding opportunities are through Innovate UK (a departmental branch of UKRI). Projects can typically range in size from £100k to several million. Funding calls are either ‘thematic’ (targeting specific industry sectors such as: agriculture, farming, food, manufacturing, transport, finance, health), or ‘open’ (any subject goes) e.g., Smart Grants (typically £25m allocated for UK organisations in three or four funding calls each year).

Horizon Europe from the EU, with a huge budget of €95.5 billion which runs until the end of 2027. Despite Brexit, UK organisations can still access many of the funding opportunities.

Practically all areas of science and technology are covered, with grants up-to €10m+.

Key funding topics include:

• Health
• Culture, Creativity, and Inclusive Society
• Civil Security for Society
• Digital, Industry and Space
• Climate, Energy and Mobility
• Food, Bioeconomy, Natural Resources, Agriculture and Environment

Further, the grant funding from these sources does not need to be repaid, and there is no equity or IP dilution.

Now the Challenge! Accessing such grants can be very difficult if you are not familiar with the application processes, often leading to low pass rates and wasted resources (time and money).

Now for some more good news! Partnering with a vastly experienced organisation in grant acquisitions such as Keystone Innovation can help. Their processes are summarised below:

Initial ‘due-diligence’ on the project concept/idea to assess its viability to attract grant funding before proceeding. Assuming this is positive, the application process begins involving:

• Kick-off meeting/workshop to scope-out in more detail the structure and content of the grant application
• Articulating the key innovation, work packages, project risks, markets, routes-to-market, high-level business plan, team description, project impacts, justification for funding etc
• Regular review meetings to agree application development goals and to review progress
• Assistance with recruiting formal project partners (e.g., research organisations, supply-chain partners, end-users/customers for technology validation) which could strengthen the project team
• Writing the full application in collaboration with the client
• Assisting with the full project budget preparation
• Final checks, reviews, edits etc. and final sign-off with the client
• Submitting the application to the funding body

To learn more about grant funding, funding opportunities and the support available, please contact Tony Lesowiec, Keystone Innovation Ltd for more information.