Why Should You Include Grants In Your Fundraising Strategy?

Funding | Startups | Grants | Technology | Innovation

Whether you’re trying to attract investors for a big round of funding or looking for initial capital to develop a product prototype, one thing you’re missing out on in your fundraising strategy is a grant.

Grant is not only equity-free cash money, it great alternative source of cash to fund your startup.

to put towards your research, prototype development, or launching a product.

Raising capital for a startup is a difficult process.

So, where you should look for grants? And what you can do with that money?

First, I want you to get over the notion that grants unreachable and no way you can get government money.

While you are hustling your way to venture capital and angel investors, only 0.91 percent of startups are funded by angel investors, while only 0.05 percent are funded by VCs. On top of this, many founders must sell between 1 0% and 20% of the equity in the company to VCs, in order to get any investment.

But, this about it there is currently over 900 federal grant programs offered by 26 different grant-making agencies. In 2019 alone, the federal government distributed $721 billion to states and local governments, about 16% of the United States budget.

With social entrepreneurship on the rise, acceleration of progress in MedTech and biotech industries, the government has a huge interest to stimulate the startup ecosystem by providing various grants to startups.

Here are 3 places you can look for a grant:

  • The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs- This is one of the largest government programs aimed to stimulate technological innovation, and increase private-sector commercialization of innovations.
  • NIH — National Institute of Health — if your startup biotech and MedTech industry, this is the must-go place to look for active grants. Did you know that NIH is the largest public funder of biomedical research in the world, investing more than $32 billion a year to enhance life, and reduce illness and disability?
  • NSF America Seed Fund — America’s Seed Fund is empowered by National Science Foundation helping early-stage startups and small businesses to transfer their ideas into marketable products and services. From robotics, AI, Machine Learning to Digital Health and Biotechnologies, this fund is aimed to foster innovation in the United States.

Along with getting the initial capital to put towards your research or prototype development, grants also are prestigious and valuable for recognition in the industry. It creates new opportunities and provides valuable-driven partnerships to attract new investors.

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Founder at iFundLab/Podcast Host. I helping startups to raise capital through SBIR and other federal funding programs. without equity dilution

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Narine Emdjian

Founder at iFundLab/Podcast Host. I helping startups to raise capital through SBIR and other federal funding programs. without equity dilution