Innovate UK Investor Partnerships: SME round 6

Key Features

UK registered businesses can apply for grant funding alongside private investment from selected investor partners.

Programme:     Innovate UK

Award:     Share of up to £2 million

Opens: 9th Jan 2024

Closes: 27th Feb 2024

! This scheme is now closed

Overview

As part of UK Research and Innovation, Innovate UK has selected a pool of UK investor partners.

These investor partners have demonstrated that they have the credibility, capability, capacity and appetite to invest in innovative, technology-led businesses that align with their programmes.

These programmes will focus on the future economy as described in Innovate UK’s plan for action.

The future economy investor partnership programme brings together:

  • Innovate UK’s expertise in identifying innovation and using grant funding to change the risk profile of businesses
  • investor partners’ aligned funding and expertise in identifying opportunities and teams that can best use extra investment finance

This approach aims to provide you with support for research and development and access to the capital investment you need to develop and commercialise your innovations.

Scope

The aim of this competition is to provide you with support for research and development and access to the capital investment you need to develop and commercialise your innovations.

Your proposal must have a clear route to market, a clear link to innovation and evidence that you can create a team to deliver your proposal.

You must be:

  • registered in the UK as an SME by the time the award is contracted
  • able to complete the aligned investment led by the investor partner needed to qualify for the award, through the issue of new shares or convertible debt

You must also demonstrate that if your project is funded, it will:

  • have significant market impact
  • be scalable
  • be attractive to other equity investors

Future Economy

Innovate UK are looking to support projects that focus on the future economy areas included in the Innovate UK plan for action.

This covers:

  • net zero
  • health and wellbeing
  • next generation digital technologies and technology families

Innovation and ideas can come from anyone and anywhere. We want to see investments unlocked for the diverse and extraordinary talent in the UK. We are encouraging diverse applicants and inclusive project applications, pushing beyond the status quo.

Innovate UK encourage innovation involving communities that are typically under-represented, including:

  • from regions that have historically accessed lower levels of investment (outside London, Oxford and Cambridge)
  • ethnic minority groups
  • women and other marginalised genders
  • disabled people
  • people with non-traditional education backgrounds

To support this, we also have a targeted theme on equality, diversity and inclusion (EDI).

Specific themes

The investor partnership programme is focused on specific themes for the future economy areas that include:

Net Zero

  • capital intensive technologies
  • critical circular materials
  • power, particularly offshore wind, civil nuclear, hydrogen, carbon capture and storage, and whole systems integration
  • battery technologies for transport and energy storage (Faraday Battery Challenge) is no longer in scope as funding has been fully committed in earlier rounds
  • heating and retrofit is no longer in scope as funding has been fully committed in earlier rounds
  • resource efficiency for materials and manufacturing is no longer in scope as funding has been fully committed in earlier rounds
  • mobility is no longer in scope as funding has been fully committed in earlier rounds

Health and wellbeing

  • innovative solutions to health and healthcare challenges (Biomedical Catalyst)
  • advancing life-changing cancer therapeutics, focussed on immunotherapies and paediatric oncology (Cancer Therapeutics)
  • the application of extended reality for digital mental health, including immersive content that could be delivered as a digital mental health therapeutic in formal healthcare settings (Mindset)

Next generation digital technologies

  • projects within the creative industries which are underpinned by innovative digital technology as well as sustainable innovations, such as circular fashion (Creative Catalyst)
  • projects underpinned by artificial intelligence and machine learning which boost business productivity in four target industries
  • projects underpinned by artificial intelligence and machine learning which boost business productivity in internal business processes
  • projects that accelerate the adoption of trusted and responsible AI technologies by reducing bottlenecks during development and deployment of these technologies (BridgeAI)

Equality, Diversity and Inclusion

  • innovations from diverse talent that are from underrepresented groups and are role models
  • innovations outside of the future economy theme areas, including those that support underserved communities and groups

In the scope and specific themes questions, you must explain which theme your project relates to and why. If your project also relates to the theme of equality, diversity and inclusion, you must explain this in the scope and specific themes questions.

Your application will be considered out of scope if you do not answer this clearly.

Portfolio approach

Innovate UK want to fund a variety of projects across different technologies and markets, with a particular focus on future economy areas set out in the Innovate UK plan for action. We call this a portfolio approach. We will also take into account the impact of the grant in accelerating investment and the likelihood of the investment completing within a reasonable time.

Eligibility

The eligibility criteria will depend on your research category.

For feasibility studies projects:

  • your total project costs must be between £50,000 and £300,000
  • the project duration must be between 6 and 12 months

For industrial research projects:

  • your total project costs must be between £100,000 and £1 million
  • the project duration must be between 6 and 18 months

For experimental development projects:

  • your total project costs must be between £250,000 and £2 million
  • the project duration must be between 12 and 18 months

Projects must always start on the first of the month and this must be stated within your application. Your project start date will be reflected in your grant offer letter if you are successful.

Under current restrictions, this competition will not fund any procurement, commercial, business development or supply chain activity with any Russian or Belarusian entity as lead, partner or subcontractor. This includes any goods or services originating from a Russian or Belarusian source.

If you have not provided information on the investor partner who is leading on your investment or we are unable to confirm the investment position with that investor partner, then your application will not be eligible. Your application will then not be sent for assessment.

Your organisation

To apply your organisation must:

  • be a UK registered micro, small or medium sized business (SME)
  • carry out its project work in or from the UK
  • intend to exploit the results in or from the UK
  • have discussed and agreed your proposal with your investor partner before submitting your application

Subcontractors

Subcontractors are allowed in this competition.

Subcontractors can be from anywhere in the UK and you must select them through your usual procurement process.

You can use subcontractors from overseas but must make the case in your application as to why you could not use suppliers from the UK.

You must provide a detailed rationale, evidence of the potential UK contractors you approached and the reasons why they were unable to work with you. We will not accept a cheaper cost as a sufficient reason to use an overseas subcontractor.

All subcontractor costs must be justified and appropriate to the total project costs.

Number of applications

You can only submit one application into this round of the competition.

Use of animals in research and innovation

Innovate UK expects and supports the provision and safeguarding of welfare standards for animals used in research and innovation, according to best practice and up to date guidance.

Any projects selected for funding which involve animals will be asked to provide additional information on welfare and ethical considerations, as well as compliance with any relevant legislation as part of the project start-up process. This information will be reviewed before an award is made.

You can use a previously submitted application to apply for this competition.

Exclusions

Innovate UK are not funding projects that are:

  • not carried out by SMEs
  • collaborative R&D projects
  • not part of a company’s growth plan
  • unable to demonstrate there is potential for growth and return on investment
  • not working with an investor partner from the selected pool of investor partners

Innovate UK cannot fund projects that are:

  • dependent on export performance, for example giving a subsidy to a baker on the condition that it exports a certain quantity of bread to another country
  • dependent on domestic inputs usage, for example giving a subsidy to a baker on the condition that it uses 50% UK flour in their product

Funding Costs

You will only receive grant funding from Innovate UK if you also receive a minimum level of aligned investment that has been led by your investor partner. The minimum level of investment will depend on the research level.

Innovate UK will decide which projects are eligible and in scope to receive grant funding. The decision will be based on the assessment of your application by independent assessors. We will also take into account the impact of the grant in accelerating investment and the likelihood of the investment completing within a reasonable time.

If you are successful, you will receive grant funding to cover a proportion of the costs of your project. The project will only be allowed to commence once the agreed aligned investment has been confirmed.

Your business must have sufficient capital resources, including through investment from the investor partner and the grant funding, to enable you to meet all your project’s eligible costs.

All recipients must act commercially, and your funding request must not exceed the limits specified.

Feasibility studies and industrial research projects

For feasibility studies and industrial research projects, Innovate UK will fund:

  • up to 70% of eligible project costs for micro or small organisations
  • up to 60% for medium sized organisations

The aligned investment led by the investor partner must always be at least equal to the grant funding.

Experimental development projects

For experimental development projects Innovate UK will fund:

  • up to 45% of eligible project costs for micro or small organisations
  • up to 35% for medium sized organisations

The aligned investment led by the investor partner must always be at least twice as much as the grant funding.

Interested in applying for this competition?

Book an appointment to speak to one of our advisors to discuss your eligibility to apply for this Grant Funding opportunity.