Habla con nosotros:
dealflow@intelectium.com
Habla con nosotros:
dealflow@intelectium.com
Public funding is an excellent option to grow without giving up equity or having to resort to personal guarantees. In addition, it makes it possible to considerably leverage the amounts obtained in private funding rounds, especially in the early stages of a startup. At Intelectium, we have been helping startups in this process for more than 20 years, and these tips are based on our experience with more than four hundred companies.
One of the most common mistakes is to seek only non-refundable grants. These grants are very attractive because they do not have to be returned, but they are limited and, in addition, they tend to be very competitive, so it is not enough to meet the requirements, you have to stand out from many other companies that also request them. It's important that startups also consider other options, such as partially repayable grants or participatory loans. Grants such as those from CDTI or ENISA offer good conditions to finance innovative projects without sacrificing growth.
Another mistake that is repeated is to belittle the innovation that is already taking place within the company. Sometimes startups think that what they're doing isn't innovative enough to qualify for public funding, but often that's not the case. There are numerous lines of funding that seek to encourage internal improvements, either in processes or in the integration of new technologies. For this reason, Intelectium always recommends carefully evaluating whether past or future projects may be eligible for aid or tax deductions.
A third mistake, quite critical, is waiting until you run out of cash to start looking for funding. Public entities, like banks or private investors, prefer to finance companies that are in a healthy financial situation. In addition, often these grants only cover part of the project, so the company must have its own funds to finance the rest. Therefore, it is essential to start seeking public funding when there is still financial room, without waiting until it is too late.
Another common mistake is wanting to apply for European funding from the start, without having taken advantage of national options. Competition at European level is much higher and the chances of success are lower if the startup has not advanced enough in its technological development or in the validation of its market. It is advisable to first exhaust your options at the national level before venturing out to compete in the European market.
Finally, there is the mistake of wanting to go alone, without expert help. The processes for applying for public funding are very thorough and can be lengthy and complicated. Specialized consultants are well aware of the requirements and know how to maximize the chances of successful applications. At Intelectium, for example, we only charge if we get funding for your company, so the barrier to entry is low, and the chances of success are much greater than if you do it on your own.
In short, public funding is a great opportunity for growth, but it's crucial to avoid these common mistakes to increase the chances of success. Intelectium has been supporting innovative startups and SMEs for more than 20 years.
Contact us and we'll explain how we can help you.
