One of the hardest parts of our job as innovation and grant consultants is turning down great businesses.
For every 10 businesses that approach us for funding support, we’ll go on to partner with just one or two. Not because the others aren’t brilliant, but because not every great business is a grant-fundable business. And it’s important to know the difference.
At Tatton Consulting, we’re always honest and upfront about a project’s chances of success. But telling a prospective client that their chances are slim can sometimes feel like we’re dismissing their business idea altogether. That couldn’t be further from the truth. Some of the most successful businesses in history wouldn’t have been eligible for grant funding, and that doesn’t make them any less viable or investable.
It’s simply that what makes a business successful and what makes a grant application successful don’t always align.
A business that doesn’t fit a grantor’s criteria can still thrive and become an industry leader. Grants are designed to support specific types of innovation and stages of development. If a business doesn’t match a scheme’s criteria, it’s not a reflection of its quality, it just means it’s not the right fit for funding.
Many people compare a grant application to pitching on Dragon’s Den, and in some ways, that analogy works; you’re essentially making a pitch for investment. But probably 90% of the ideas pitched on Dragon’s Den wouldn’t be right for grant funding. The things that make a business investable, don’t always make it fundable.
So what’s the difference?
The key factors between a great business and a fundable business hinge on eligibility, innovation and wider impact…
1. Eligibility: Should You Even Apply?
Many grant schemes have strict eligibility criteria, often hidden in pages of complex guidelines that are difficult to decipher. In a recent Innovate UK Smart Grant round, 20% (~300) of applications weren’t even assessed because they were deemed ineligible. That’s thousands of wasted hours spent on applications that were never in contention.
Being ineligible doesn’t mean a business idea is weak, or its technology isn’t valuable. It just means it wasn’t a match for that particular scheme. A more thorough upfront assessment – along with honest, experienced guidance – could’ve saved those businesses significant time, effort and resources.
2. Innovation: Is Your Idea Truly Novel?
Innovation is subjective, and grant bodies set the bar high. Many competitions seek game-changing breakthroughs, not just market disruption.
A business might be solving a major problem, filling a gap in the market, or introducing a new way of doing things. But if the core technology already exists in some form – even in another sector – it may not meet the funding criteria.
Take AI, for example. The explosion of generative AI has led to countless innovative uses across different industries. Many of which may go on to be truly transformative for their sectors. But most of these solutions build on pre-existing AI chatbots and Large Language Models developed by others. Since the underlying technology isn’t new, these applications often fail to meet the innovation threshold for grant funding.
3. A Wider Impact: Beyond Revenue
Whilst commercial potential is a key metric by which your project will be judged, grant funding isn’t just about revenue. Most competitions require proof of a genuine positive impact on society, the environment, or both. Not just the founder’s pocket.
A business that promises strong financial returns but lacks a meaningful, measurable wider impact will struggle to secure grant funding.
That doesn’t mean it can’t become a phenomenal business. It just means grants aren’t the right funding route.
Thinking Strategically About Grant Funding
These differences highlight why a great business doesn’t always make for a great grant application. It’s essential to assess your business in the context of the grant scheme before investing time in an application.
At Tatton we take the time to discuss your technology, R&D pipeline and stage of development in depth before deciding whether to proceed. These upfront conversations and scoping sessions matter just as much, if not more than writing the applications themselves. They help:
- Save time and resources by confirming project eligibility early.
- Uncover alternative funding opportunities that might be a better fit.
- Refine the positioning of your innovation to better align your R&D with a grant’s scope and criteria; how you view your project might not always be the best angle to lead with/
Ultimately, if your business isn’t the right fit for a particular grant, that’s not a reflection of its potential, it just means there may be better funding options available. And that’s OK.
If you want an expert, honest assessment of your own business’ suitability for grant funding, get in touch with Tatton Consulting today for an initial chat.
