Startup funding

[Maverick77]

Good evening ?

My business partner and I have found two developers in our close network who are interested in getting involved in our fintech project (I refuse to call it a business at this stage).

We feel that it wouldn't be right to expect them to work for free and so we are researching the finance options out there.

We're currently looking at crowdfunding and grants.

Anybody have any experience with either and able to offer advice?

 

[Mark T Jones]

Grants are entirely dependent on circumstances and cause - there is no such thing as a general 'start up grant'

Crowdfundibg is a big topic in its own right - on which I will soon be writing however, in a nutshell, success usually comes down to building a loyal and committed crowd before you launch

 

[Paul Kelly ICHYB]

We feel that it wouldn't be right to expect them to work for free

Well that's jolly decent of you! Too many people think they should be working for free.

Speak to your local council to see if they can point you in a direction.

 

[Maverick77]

Well that's jolly decent of you! Too many people think they should be working for free.

Speak to your local council to see if they can point you in a direction.

Thank you. Just sent my council an e-mail.

Grants are entirely dependent on circumstances and cause - there is no such thing as a general 'start up grant'

Crowdfundibg is a big topic in its own right - on which I will soon be writing however, in a nutshell, success usually comes down to building a loyal and committed crowd before you launch

I've found a company called Grantify and I have a call with them on Wednesday.

 

[Mark T Jones]

Thank you. Just sent my council an e-mail.


I've found a company called Grantify and I have a call with them on Wednesday.

Have a chat - and listen to what they have to say.

Pay close attention to how they challenge your assumptions and how 'difficult' their questions are.

If they even hint at 'quick / cheap / easy', you can confidently assume that the are mostly interested in taking fees.

 

[Kitsunae]

We've won two grants in two years, so I thought I'd put my two cents in. We did both apps ourselves because we were too tight to cough up the money for grant writers.

There is an open "Smart Grants" program through Innovate UK, but it's very competitive because it doesn't have a specific scope definition apart from innovative ideas. The success rate is around 2% and it's getting more competitive.

Applying is a lot of effort - generally people will allow three weeks of solid work. Grant writers like Grantify will help you with the application, but they will also take at least £3k (up front) + 3.5% of the grant (if you win). There is both a base and a premium service, which is quite a bit more. They use an online form for scale - you fill in the form, it autogenerates the application, you fix it up and fill in the missing bits, then they review. I've heard them say that it will take only a few hours for you to fill in the form. That might be true - but what they don't say is that you need to do days of research and prep to get the information to fill it in.

The other thing that you need to keep in mind is match funding - it's very rare that a grant competition will give you 100% funding. You will need to prove that you can cough up 30-50% of your eligible project costs. There is also a lot of paperwork and reporting involved once you actually get the grant.

 

[Maverick77]

We've won two grants in two years, so I thought I'd put my two cents in. We did both apps ourselves because we were too tight to cough up the money for grant writers.

There is an open "Smart Grants" program through Innovate UK, but it's very competitive because it doesn't have a specific scope definition apart from innovative ideas. The success rate is around 2% and it's getting more competitive.

Applying is a lot of effort - generally people will allow three weeks of solid work. Grant writers like Grantify will help you with the application, but they will also take at least £3k (up front) + 3.5% of the grant (if you win). There is both a base and a premium service, which is quite a bit more. They use an online form for scale - you fill in the form, it autogenerates the application, you fix it up and fill in the missing bits, then they review. I've heard them say that it will take only a few hours for you to fill in the form. That might be true - but what they don't say is that you need to do days of research and prep to get the information to fill it in.

The other thing that you need to keep in mind is match funding - it's very rare that a grant competition will give you 100% funding. You will need to prove that you can cough up 30-50% of your eligible project costs. There is also a lot of paperwork and reporting involved once you actually get the grant.

Hey,

Thanks for your advice.

We're the grants that you won from innovate UK?

 

[Kitsunae]

Yes, Innovate UK.

 

[fisicx]

I’ve been involved on two grant applications both of which failed. Both took a huge amount of effort (think months not weeks) with some very deep and probing questions.

They really want to be sure the money is going to the right places. I doubt very much you will get a grant to pay for developers. If you needed machinery, equipment, building repairs and similar you would have a much better chance of success.

 

[Kitsunae]

They really want to be sure the money is going to the right places. I doubt very much you will get a grant to pay for developers. If you needed machinery, equipment, building repairs and similar you would have a much better chance of success.

They definitely want to be sure that it's going to be spent well, hence the time consuming application and reporting.

Both our projects involve quite a lot of software development though, and I know lots of other software startups who got funding. But you can't just ask for money for developing a product – Innovate UK funds R&D projects, so you have to explain why it's novel R&D.

 

[fisicx]

Both our projects involve quite a lot of software development though, and I know lots of other software startups who got funding. But you can't just ask for money for developing a product – Innovate UK funds R&D projects, so you have to explain why it's novel R&D.

Indeed. But the project has to add real value. Fintech is unlikly to excite the grant provider, especially as banks and other financial organistions are already investing millions in a whole range of technology. You would have to have something really special, even better if you already have a working model. @Maverick77 - do you have the funds to pay for some prototyping?

 

[Maverick77]

Indeed. But the project has to add real value. Fintech is unlikly to excite the grant provider, especially as banks and other financial organistions are already investing millions in a whole range of technology. You would have to have something really special, even better if you already have a working model. @Maverick77 - do you have the funds to pay for some prototyping?

@fisicx
Yes, we have the wherewithal to put a prototype/working model together ourselves and this is exactly what we're planning on doing.

 

[Maverick77]

Yes, Innovate UK.

Would you mind if we keep in touch?
I/we would like all the help we can get.

Have a chat - and listen to what they have to say.

Pay close attention to how they challenge your assumptions and how 'difficult' their questions are.

If they even hint at 'quick / cheap / easy', you can confidently assume that the are mostly interested in taking fees.

Yep, you were right.

Throughout the conversation I felt as though I was in conversation with a car salesman. All the usual sales talk...and they want £4,500 up front + 3.5% of the grant if successful.

I happen to believe that £4,500 + 3.5% is a bit steep for basically having somebody help me fill in a form.

 

[Kitsunae]

Would you mind if we keep in touch?
I/we would like all the help we can get.

Sure - feel free to DM me. I won't sign an NDA though, so may not be entirely useful.

Just so you know, Grantify is actually on the cheaper end of grant writing services, probably because they have an impressive sales funnel and system going. I talked to someone who wanted 10% plus £6k up front on a £500k grant, albeit with better quality of service.

 

[Maverick77]

Sure - feel free to DM me. I won't sign an NDA though, so may not be entirely useful.

Just so you know, Grantify is actually on the cheaper end of grant writing services, probably because they have an impressive sales funnel and system going. I talked to someone who wanted 10% plus £6k up front on a £500k grant, albeit with better quality of service.

Thanks, will DM.
We will appreciate all the help we can get.

And @fisicx may be right about the need for an NDA. Obviously not going to ask you to sign one ?