Tag Archive for: Grant Funding

grant funding

Is there a right time to apply for grant funding?

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Applying for grant funding can feel like a challenging process. However, receiving that funding can be transformative for a business and well worth the effort. There are lots of benefits to applying for grant funding, no matter what your industry or the type of business that you have. If you’re considering making an application then it’s going to be vital to make sure that you get the timing right.

 

Why apply for grant funding?

  • Accelerate project timeframes – If you’re successful in applying for grant funding this can provide you with vital resources that significantly speed up existing project timeframes. It could help to reduce the time to market for a product or service and put your enterprise ahead of the competition as a result. There are lots of obvious advantages to this, from increasing the commercial returns – and the speed at which they are accessible – to reducing financial risk. This funding also helps to improve business growth by allowing for more ambitious projections and plans without the need to give away any equity.
  • Access collaboration – The right grant funding will also open the door to collaborations that might be vital to delivery, whether that is with industry, academic or research partners. Collaborations can be beneficial for enterprises at any stage, especially as they tend to open up access to new technologies, expertise, processes and techniques.
  • Cover a broad spectrum of costs – Typically, grant funding can be used to cover a broad spectrum of costs, including staff costs at a rate of up to 70%. This can be essential cash flow, especially as it doesn’t come with the requirement to make repayments, pay interest or give away any equity in order to be able to access the funds.

 

What is the right time to apply for grant funding?

The main reason that it’s key to consider timing when it comes to grant funding is because the process of application can be months long. In fact, it usually takes around six months to apply for grant funding. So, if you’re looking at grant funding for your business it’s essential to factor in the time that it’s going to take to apply for the grant and to receive it into the business. Research, completing the application and waiting for a decision will all be part of this process. It’s also worth remembering that the timing of grant funding could also have an effect on how impactful your project is able to be. Getting your application in well in advance could mean that you receive grant funding at exactly the right moment to access beneficial factors in the external environment. It can also trigger connections with potential partners at exactly the right time and accelerate project growth.

Timing is as important for grant funding as ensuring that you pick a grant that is going to be the right fit. Give yourself plenty of time to complete the application process and time it so that the benefits will land at just the right moment to accelerate both the project and future growth.

 

Grant Advance Funding through SPRK Capital

SPRK Capital are a leading provider of R&D tax credit loans and grant funding loans in the UK. We support innovative SMEs by giving them access to their capital when they need it.

To find out more about how we can advance your grant funding to you, visit our ‘Grant Loans‘ page.

Woman learning about grant funding

What is Grant Funding?

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Grant funding is where an individual or organisation receives a sum of money from a third party, such as a foundation or a government. It can be made available for a variety of different reasons but always provides a form of cash flow that does not have to be repaid. There are lots of benefits to being able to obtain grant funding, from the financial income to the opportunities it opens up for collaboration.

The different types of grant funding

There are generally two types of grant funding available: capital grants and research and development grants. A capital grant is designed to cover the cost of specific items, such as equipment and buildings. The idea behind a capital grant is to enable more impactful projects to be created by taking away the pressure on capital expenditure. Research and development grants are slightly different in that the cash is provided for a specific purpose, aim or project. This type of grant is typically used to support high-risk technology projects that have a lot of growth potential.

What kind of funding is available?

Most grants are paid out in arrears, which means that expenses need to be paid for upfront and then recouped under the grant. The amount of the costs that a grant will cover usually depends on the grant. If it is a capital grant then this will usually be somewhere between 20% and 40% of project costs. For a research and development grant, it could be anywhere from 50% to 100%.

Find out what grants you can apply for by using our Opportunity Checker.

Why apply for grant funding?

There are lots of benefits to successful grant funding, including:

  • This is non-dilutive funding – This means that there is no requirement to give away equity in the business in order to obtain the funding. As a result, no control is lost.
  • Obtaining grant funding can boost what can be achieved by a project and also accelerate time to market – This is a huge advantage for any organisation looking to be first-to-market with a specific product or service.
  • Grants don’t involve any debt – So, there is no interest to consider and no requirement to make repayments either.
  • Grants can open the door to collaboration with expert partners – This can provide access to expertise and insights, as well as networks and technologies.
  • There is the potential to have a big impact – Grant amounts are typically between £50,000 and £4 million so the funding received can be truly transformative.
  • Grant funding can also make a project more attractive to investors, as it reduces risk.

How to apply for grant funding

Every funding body will have a different application process and it’s important to get familiar with this before starting an application. Especially vital will be the timelines involved – it can take six months from application to receiving grant funding so it’s essential to factor this into any plans that you have for the funding.

Grant funding is a potentially transformative source of income for any business, either to support capital or research and development costs.

Grant Advance Funding through SPRK Capital

SPRK Capital are a leading provider of R&D tax credit loans and grant funding loans in the UK. We support innovative SMEs by giving them access to their capital when they need it.

To find out more about how we can advance your grant funding to you, visit our ‘Grant Loans‘ page.

how to create a grant-fundable project

How To Create A Grant-Fundable Project

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There is plenty of grant funding available for innovation projects today. However, being able to access this funding depends on how you define the project before you even start the process of writing the bid. If you want to create a grant-fundable project then it’s essential to have firm foundations in place to ensure that you’re clear about the project, have a consistent narrative and can demonstrate to assessors why funding is deserved. Here are 5 specific questions to focus on if you want to avoid wasting time and ensure that you’re creating a grant-fundable project.

 

What are the objectives and outcomes of the project?

The key to getting funding for your project will be whether there is a good opportunity here that has been well researched. Equally as important will be whether you have shown a clear connection between the problem that you’ve identified and the solution that you’ve come up with. It’s going to be important to be able to include market research that shows solid knowledge of the market and a strategy to enter it, as well as how the project is going to be able to generate commercial returns once it’s up and running. Remember that even a small percentage of a big market is going to generate a big financial return. At this stage it’s useful to focus on project management too – are you going to opt for an ‘agile,’ incremental, iterative approach or a linear and sequential ‘waterfall’ approach?

 

Have you defined the human resources?

You don’t need to put all your people on the project 100% of the time. Instead, it can be useful to look at the various skills and abilities of the people in your business and use them intelligently. Assessors are going to want to see evidence of resources being applied in the most efficient way possible to meet goals, as opposed to broadly and with less attention to detail. It can also be really useful to have identified partners for your project – this can boost credibility and support the idea that your objectives are achievable. Partners can bring new skills to a project, add experience or insight and add a whole range of new solutions. When you’re choosing a project partner, focus on the area where you most need support, whether that’s design or technology or something else.

 

What are the costs involved?

When you’re applying for funding it will obviously be vital to ensure that you have a robust set of figures to base your application on. The main focus for assessors will be determining whether your project offers value for money. Depending on the grant you’re applying for there will be different factors involved in the financial side of the application. It’s important to apply for the right level of funding using the criteria of the fund that you’re applying to (for example, Innovate UK defines funding levels on factors like organisation size and project maturity). Be very specific about the costs that are involved in the project – make sure the costs are appropriate for the project but that you’re not underestimating them. Aim for the eventual outcome of what you need to achieve the minimum viable product or your idea, rather than simply opting for the maximum grant available. Check whether there are any ineligible costs that could create problems for your funding further down the line if you include them now.

 

How will you handle the Intellectual Property (IP)?

Wherever there is innovation there is a need to properly define and protect intellectual property. If IP is not protected, or it is lost, then this can have a big impact on the size of the commercial returns that you’re likely to be able to generate. This is why it’s such a key part of the project process and needs to be clearly outlined when you’re making an application for a grant. The worst case scenario is that you get to the end of the project and realise that commercial returns have been completely eliminated because the IP was not properly set up during the earlier stages. It’s often useful to work with an IP specialist if you’re not sure how to approach this – they will help you to explore all the options when it comes to IP, not just patents. Think about the outputs of the project that you’ll need to use IP for in order to protect your opportunity to commercially exploit what you create.

 

How are you going to ensure ongoing compliance?

If you’re successful in creating a grant-fundable project, the obligations don’t end with approval. So, it’s going to be essential to have the skeleton of project management clearly laid out in advance. This will not only ensure that your project is completed on time and on track but that you can remain compliant with the requirements of the grant funding. There will be specific reporting intervals during the project that come with required documentation and milestones. These include progress reporting and financial reporting, as well as being able to effectively manage any changes that you want to make to the project once it’s under way. Accurate reporting is going to be a vital part of ensuring that the cash flow of a project remains healthy and that you’re able to comply with the requirements of the grant. If you don’t have the resources to handle this in-house already then it’s always worth seeking the support of a specialist advisor. If you start to feel overwhelmed by reporting requirements, how to respond to them and manage them, there are professionals in grant project management who can help.

 

These 5 questions are key to ensuring that you’re creating a grant-fundable project. Although much of the work in innovation happens after funding has been received, it’s what you do before you even submit your application that will determine whether the project gets the funding necessary to begin. From reporting requirements to IP, human resources and costs, all of these need to be considered when you’re creating a grant-fundable project.

SPRK Capital, information sourced from Granted Consultancy – a Ryan Company.

Technology Readiness Level TRL

What is TRL?

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TRL is key when applying for grant funding

If you’re looking into R&D grant funding for your business then TRL is key information to have. Technology Readiness Level (TRL) is a system of measurement that is used as a way to assess how mature a particular technology is. Technology projects will receive a TRL rating after being assessed against the scope of this measurement system. This can affect everything, from eligibility to the level of funding received, so it’s a key detail to understand.

TRL is all about project maturity

TRL is used to determine the maturity of a technology – and, subsequently, the funding a project that involves this technology can receive. So, it’s important to understand the potential impact it could have for your business. There are three levels of technology readiness: Fundamental Research (TRL1-3), Industrial Research (TRL 4-6) and Experimental Development (TRL 7-9). What’s important to note about these ratings is that, as new technology passes through these stages the risk associated with commercialising that technology is seen to reduce. As a result, the intervention rate offered by the grant funder will reduce too – from 100% at TRL1, for example, to 45% at TRL9.

How do you know which TRL stage your technology is currently at?

Here’s a brief guide to all the various TRL stages:

  1. TRL1 – Basic principle observed and reported: Here you will have fundamental concepts and properties but not much else. This is the start of the research process and the point technology can be conceptualised in a basic way in order to be developed further down the line.
  2. TRL2 – Technology concept formulated. The basic concepts and practicalities are nailed down so that they can be applied to scientific research.
  3. TRL3 – Experimental proof of concept: The feasibility of the technology is established, as well as whether it can be taken further into development. Evidence should be collected via studies and a proof-of-concept model constructed.
  4. TRL4 – Technology validated in the lab: The various testing of components can start on the basis of what has been established in the proof of concept stage. Performance predictions can be tested at this stage, as well as the final operating environment.
  5. TRL5 – Technology validated in the relevant environment: TRL5 leads on from TRL4 with more intensive testing of the technology in environments that are as realistic as possible.
  6. TRL6 – Technology demonstrated in the relevant environment: There will be a prototype that can be tested against full-scale realistic issues.
  7. TRL7 – System prototype demonstration: The prototype is tested in the actual environment it is designed to operate in.
  8. TRL8 – System complete and qualified: The final test has been successful and the technology is ready to be used.
  9. TRL9 – Actual technology is proven: The final product has been used successfully in its environment and is now a TRL9 technology.

If your business is looking to obtain R&D funding then understanding the TRL model of measurement is going to be a vital part of the process of getting your applications right.

SPRK Capital, information sourced from Granted Consultancy – a Ryan Company.

SPRK Capital’s Grant Advance Funding

Our Grant Advance Funding offers valuable assistance to your company by providing access to capital for funding your innovation initiatives. With SPRK, you can borrow against the anticipated grant-covered expenses, allowing you to access the necessary funds to achieve grant milestones. Our service enables you to receive upfront funding for each quarterly or milestone payment, reducing your capital needs by as much as 60% and facilitating smoother progress in your projects.

 

Innovate UK pledges £100M to fund AI adoption

Innovate UK pledges £100M to fund AI adoption

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Artificial Intelligence (AI) is a trending topic in all sectors right now. However, many have been slow to adopt and integrate this revolutionary technology – and to feel its benefits. Now, Innovate UK – which is the government’s innovation agency – looks set to address this with a new programme that is designed to help AI reach more sectors that are currently low maturity where AI adoption is concerned.

BridgeAI investment

The £100m evidence-based BridgeAI programme is designed to address key obstacles to AI adoption by UK businesses. The first is a lack of skills meaning that businesses don’t feel able to adopt new AI technologies. And the second is a lack of AI developer organisations offering AI-based products and services designed for those sectors that have low AI maturity. The programme will be available until March 2026.

How is the £100m investment likely to be made?

● £35m to increase sector capability and capacity to adopt AI. Alongside the resources of Innovate UK, an Innovation Network is being developed to create connections between AI adopting and developer organisations, as well as key strategic partners. The goal outcome is to make a range of products available to organisations that want to adopt AI technologies – and to provide support in the process of doing this.
● £250m via UKRI’s Technology Missions Fund focused on supporting quantum technologies, engineering biology and artificial intelligence.
● £65m invested via UKRI’s Technology Missions Fund to support and develop new AI and machine learning solutions that are intended to have a positive impact on business productivity. For example, £5m has been made available as grant funding for SME adopter organisations to collaborate, either with an AI developer SME or an academic. The collaboration must be focused on solving challenges or taking opportunities that will result in an increase in business productivity using AI. This is a live funding opportunity that will come to an end on 24th May 2023. However, another £5m in investment is likely to be announced next spring with a similar focus, ensuring that all businesses that could benefit from this funding get the chance to apply for it.
● £35m is to be made available to both SMEs and larger organisations from September this year for collaborative R&D projects. Eligible projects must be harnessing the power of AI in some way.

Ongoing opportunities for AI adoption

As part of the BridgeAI investment, new opportunities will be announced throughout 2023 designed to help establish an evidence-based resource of use cases for AI and ML solutions that are focused on increasing business productivity. Some sectors, such as construction, are being specifically targeted given their low maturity in an AI context. There will also be a range of other support, for example support for data and AI readiness that helps businesses to identify opportunities to deploy AI in their enterprise – to be announced this spring.

Adoption of AI can be a transformative process but there are clear obstacles for many organisations in low-maturity sectors. The new funding pledge from Innovate UK is designed to turn these obstacles into opportunities.

Grant Funding: How can tech start-ups fund their ideas quickly

Grant Funding: How can tech start-ups fund their ideas quickly

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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.

Find out more about our Grant Advance Funding or R&D Tax Credit Loans, or you can contact us directly if you have an enquiry.