GUEST BLOG: Fuel Your startup growth with the right grants (not just any grant)
A message from Sarah: I’ve introduced a lot of founders to Monika Dabrowska—and for good reason. She was my Monitoring Officer during my Innovate UK project, is the Founder of Innovaction Global and of most relevance to you: what she doesn’t know about the world of grant funding isn’t worth knowing!
I’m so grateful she’s shared her wisdom here on why being selective in the grants you apply for is so important (and her top tips for when you do). If you’re applying for funding and want to boost your chances, grab a free 30-minute Grant Funding Success Call with her team HERE.
Flip the Odds: How to Make Grants Work for Your Startup
If you’re building a mission-driven startup that you want to scale, you’re probably thinking about investment - whether you’re mid-raise or preparing for one.
But there’s another piece of the funding puzzle that whilst can sometimes feel out of reach, can be equally as impactful: grants.
Used strategically, grants can complement equity investment by funding early innovation, extending your runway, and helping you hit key milestones before dilution. They’re not a fallback, they’re a force multiplier.
That said, the grant landscape can be tough to navigate. Funding bodies are under pressure, criteria shifts and competition is high. What’s more, 67% of applications are rejected - not because the idea isn’t strong, but because demand is high and so any application that is poorly aligned, incomplete, or unclear - won’t make the grade.
And this means founders are at risk of leaving money on the table.
The good news? With the right strategy and - a bit of upfront thinking - you can flip the odds in your favour.
The Role Grants Can Play in Startup Growth
There’s no one-size-fits-all when it comes to grants. In the UK, Innovate UK is a key source of grant funding for early-stage innovation and R&D - especially in tech and impact-led sectors. For startups with global ambitions, Horizon Europe also offers significant opportunities for UK businesses now that association has been restored.
Grants come in many forms, but most are designed to do one thing: de-risk innovation. They’re especially powerful when you’re experimenting, validating, or building the foundation for something bigger - like developing a prototype, generating IP, or creating the evidence for future investment.
“The real value of grant funding is not just the money - it’s the momentum. Grants give founders the opportunity to explore ideas that might seem too risky for traditional investment. That’s where true innovation has the space to grow”
Innovate UK reports that every £1 awarded through its Smart Grant programme helped companies attract up to £4 in private investment - building both traction and credibility.
Three reasons to be selective about the grants you apply for
Let’s be honest - not all grants are worth pursuing. Here’s why being selective matters:
1. Misaligned grants are a time sink.
Some opportunities look appealing but don’t align with your model, mission, or stage. Chasing the wrong grant wastes time and can harm your credibility.
2. Grants can be resource heavy.
From writing the application to managing reporting, some grants come with significant admin. If your team is already stretched, be realistic about capacity.
3. You may need to front costs.
Many grants pay instalments, not upfront. If you can’t cover project costs in the meantime, it can put serious strain on your cash flow.
“Being strategic about which grants you pursue isn’t about playing small—it’s about playing smart. Your time, energy, and runway are precious. The right grant can be a gamechanger, but only if it works for your business, not against it. ”
Three top tips for writing a strong grant application.
Once you have found a good-fit opportunity, your application needs to stand out. Here’s how:
1. Show both vision and commercial potential.
Funders want to see that your idea is bold, but also viable. Show them how your innovation works in the real world - who it helps, how it scales, and why now.
2. Be specific with your impact, outcomes, and use of funds.
Vague goals don’t win grants. Clearly outline what you’ll do, what success looks like, and how the funding will be used. Who benefits and what will be delivered? Ask yourself - does my response truly answer the question that is being asked.
3. Do not write it alone.
Talk to your team. Loop in partners. Get a second set of eyes. Collaboration not only sharpens your narrative, but it also adds credibility.
A great idea won’t win a grant on its own—how you tell the story matters just as much. The strongest applications balance ambition with clarity, vision with viability. So don’t go it alone, get specific, and show the panel why this is the moment to back your mission
Final Thoughts: Use grants to accelerate, not just survive
Grants aren’t a backup plan, they’re a strategic tool.
When used well, they can unlock the next stage of your startup’s growth and signal serious credibility to investors. But only if they are aligned, well-timed, and thoughtfully approached.
So, ask yourself:
Is now the right moment to explore grant funding for our startup?
Do we have a clear milestone we want to fund with non-dilutive capital?
Are we ready to write a compelling case?
If the answer is yes - or even maybe - it’s worth a closer look.
If you’re looking for support in navigating the grant landscape or strengthening your next application, feel free to reach out to the team at Innovaction Global for a 30-minute Grant Funding Success Call - book your session HERE.