Interesting reading though.
Working on the assumption that the OP has identified a genuine unexploited niche, (rare but not extinct)
I'm particularly amused at how many people have encyclopedic knowledge of porn fetishes and can declare with confidence that every niche is catered to.
I'm amazed that there has been so much negativity about the business idea and so little about the funding issue.
One or two folks pointed out a moral objection to using a grant [taxpayers money] for this. I agree that any such grant should benefit the economy either by creating employment here or generating tax income here.
What I really don't get is this::|
How much do you expect to make from this business?
A mere £1k/month of profit will represent a ROI of 150%/annum
If you leave your £8k in a bank, you will be lucky to get 5%!
Whenever I have a decent business idea, the last thing I want to do is share it. If I don't fancy the risk, it's clearly not a great idea [unless it's an out and out gamble] The only reason I would ever seek external funding would be simply that I didn't have the startup money.
You have £8k, if you believe in your idea, invest the money! If you don't invest the money, admit that the business idea does not justify the startup cost.
If the only actual problem is one of matching investments with your partner. That's simple. Value his/her contribution [equipment] and share the company proportionally.