Making UK Grant Funding Work for You: What Growing Businesses Need to Know

For growing businesses, non-dilutive funding can be a critical enabler. It can support early R&D, help validate clinical pathways, or build traction in a new market. But applying for UK innovation grants is rarely straightforward.

This month for First Thursday, we hosted Ben Hutchinson and Matthew Young from BAM Innovation at the Innovation Centre for a focused session on Innovate UK and NIHR funding. The conversation covered how to write stronger applications, choose the right opportunities, and avoid common missteps.

 
 

Here are five key insights for businesses looking to approach grant funding in a more strategic way.

1. Grants are tools, not outcomes

Grants can accelerate progress, but only when they serve a clearly defined purpose. Innovate UK has moved away from open calls like SMART and toward more targeted, sector-specific competitions. NIHR remains a valuable funder for health-related innovation, but only where there is clear clinical relevance.

Before applying, ask: What role will this funding play in our overall strategy? If that answer is unclear, the opportunity may not be a good fit.

2. Understand who is reviewing your application

Grant applications are reviewed by individuals, and each brings a different lens. Some assessors are technical specialists. Others may come from academic, clinical, or commercial backgrounds.

Successful applications speak to all of them. This means:

  • Addressing every part of each question

  • Providing clear evidence and justification

  • Framing both the technical and commercial potential of the project

Each funding programme includes assessor guidance. Reviewing this closely can help you anticipate what is being scored and how.

3. Plan for timelines and cashflow

Grants are not immediate sources of capital. Innovate UK projects typically take around six months from submission to start. NIHR’s larger schemes can take up to twelve months.

Most grants are paid in arrears, usually on a quarterly basis. Your business will need to cover the initial project costs before being reimbursed.

There are exceptions. Some smaller Innovate UK programmes, such as feasibility grants, offer partial or full upfront funding and can be a good entry point.

4. Partnerships carry weight

Strong collaborations can significantly strengthen an application. For NIHR in particular, NHS partnerships are highly recommended, even when not mandatory.

In the case of Connect awards, informal input from stakeholders such as clinicians or research nurses can demonstrate relevance and user insight. For larger Product Development Awards, formal NHS involvement is generally expected.

Applications that include named partners, clear roles, and evidence of engagement tend to score more highly and signal delivery credibility.

5. Show what comes next

Grants are meant to support a defined phase of development. But assessors will also be looking for a sense of the long-term plan.

Make it clear how this project fits into your commercial pathway. Will it generate data for regulatory approval? Support investor conversations. Lead to a real-world deployment or pilot?

Even early-stage projects benefit from showing a clear route beyond the funding period.

In summary

Grant funding can be a valuable part of a company’s growth journey, but it works best when approached intentionally. Choosing the right opportunity, preparing a focused application, and planning for delivery are all critical to making the most of what grants can offer.

If you are planning to explore grant funding, the SETsquared Bath Innovation Centre team is here to help. From early-stage guidance to application review and partner introductions, we can support you at each stage of the process.

Useful links:

Bath SETsquared Innovation Centre