Non-dilutive money exists and most founders don’t look for it. You keep 100% of your equity.
Grants are funding you don’t have to pay back and don’t cost you equity. They exist at local, national, and international level, and most early-stage founders either don’t know about them or assume they’re too hard to get. They’re competitive, yes. But the money is real and the process is worth understanding.
Innovate UK (through UKRI) runs the main national programme for innovative businesses. Smart Grants are currently paused, with a replacement pilot expected in 2026, but other Innovate UK competitions remain open and are worth checking regularly. Local Enterprise Partnerships (LEPs) offer regional grants. And many local councils have small business grants that are less competitive and faster to access.
Grant applications are slower than raising from angels (individual investors who back early-stage companies with their own money). Expect 4 to 8 weeks to prepare a strong application and 3 to 5 months from submission to decision. Smart Grants are currently paused, but when they last ran, the final round funded just 44 out of over 2,000 applications. Competition for innovation grants is intense. Apply only where you genuinely match the criteria.
Read the criteria properly. Seriously. Most rejections happen because the application doesn’t address what the assessors are looking for. Explain the innovation clearly, show evidence of market demand, and be specific about how you’ll use the money. Ask for feedback if you’re rejected. Many programmes offer it and it makes your next application stronger.
If grants are relevant to your business, YourGrantBuddy.com helps founders find and apply for the right programmes.
What good looks like: A founder who applies for two or three relevant grants alongside their equity fundraise, treats grant money as a way to extend runway (the amount of time your business can keep operating before it runs out of money) without dilution (giving up a slice of ownership in your company), and uses rejection feedback to improve the next application.
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This is general information, not financial or legal advice. Always do your own research and seek independent professional advice.