Grant Funding: How can tech start-ups fund their ideas quickly
Funding can make all the difference when it comes to success or failure. Being able to get to market quickly requires an availability of resources, something that not all start-ups have. Tech start-ups might be attracting a lot of attention today but there are still plenty of challenges when it comes to getting that all-essential capital through the door. So, how can tech start-ups fund ideas quickly and optimise their chances of success?
Tech start-ups have plenty of options
The fields of science and technology are continuously changing today, as more businesses seek to innovate and develop new products, services and tech. Crucial to this is the process of R&D, which is where the most essential work often takes place. If there isn’t the cash flow to invest in R&D then, for many businesses, the story has ended before it has begun. However, luckily for tech start-ups there tend to be lots of options for those that are looking to fund their ideas quickly.
- R&D Tax Credits – Companies that are investing in R&D are highly likely to be carrying out activities that make them eligible for R&D tax credits. The result of making a claim like this could be either a reduction in corporation tax bill or a cash payment so it’s well worth the process of applying. Some of the obvious benefits are that R&D tax credits don’t need to be repaid (unlike debt finance) and there is no loss of control in the company as there might be with an investor.
- Equity Investment – There are lots of advantages to working with VCs if you are a tech start-up looking to grow, fast. The most obvious is the cash investment that will be poured into your business, creating vital funds to help get products to market. The second is that VCs also tend to come with access to networks of people who can help to advise a business and accelerate its growth. Plus, an experienced VC can help to identify any potential problems or weaknesses and increase the chances of success. The EIS/SEIS schemes can be useful when it comes to attracting investors as they reward investments made with tax breaks, which will instantly make your company more attractive.
- Grant Funding – Another great option for tech start-ups looking to fund ideas is to apply for a grant. Many grants today are aimed at companies in innovative areas that are pushing the boundaries of what is possible in the technology field. Grant funding can provide the cash incentive necessary to take a project to the next level – and has the advantage that it is not required to be repaid. What’s important is to ensure that you pick the right grant so as not to waste time on applications and also to make sure that you’re happy with whatever strings might be attached.
SPRK Grant Advance Funding & R&D Tax Credit Loans
From R&D tax credits to equity investment and grant funding, there are many ways for tech start-ups to acquire funding today. SPRK Capital are the leading provider of R&D tax credit loans and grant advance funding in the UK. We help businesses spark their innovation by giving them access to their funding capital when they need it.
We can even help by providing financing terms to assist your grant application. The process is online and easy with straightforward fees, giving you the opportunity to make your capital go further, retain equity and power your innovation.
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