.png){kind=spacer}
Building and scaling a company is hard. Finding the right funding at the right time can be just as challenging.
For many startups and scaleups, grants and other forms of non-dilutive funding can play an important role in extending runway, supporting key hires, advancing product development, and accelerating commercialization without giving up equity. But the landscape is complex, and a strong application starts long before you write the first word.
That’s why we’re refreshing our Grant Writing 101 series, with a focus on helping founders build smarter non-dilutive funding strategies. We’re starting with the basics: how to know if you’re ready to pursue grant funding, and what you should have in place before you begin.
Before You Start
To begin, it’s important to understand that grants and other forms of non-dilutive capital are typically designed to fund specific projects, not the company itself.
“Funders are not only evaluating your business. They are assessing whether your proposed project fits their program mandate, budget parameters, timing, and intended outcomes. Most importantly, they want to understand the lasting impact your project will create beyond the funding period...” - Funding Catalyst Portfolio Lead, Erin Creegan-Dougherty
“Funders are not only evaluating your business. They are assessing whether your proposed project fits their program mandate, budget parameters, timing, and intended outcomes. Most importantly, they want to understand the lasting impact your project will create beyond the funding period” explains Funding Catalyst Portfolio Lead, Erin Creegan-Dougherty. “These outcomes may include technology advancement, job creation, productivity gains, commercialization, export growth, sector development, or other priorities tied to the funding body’s mission.”
Misalignment with the funding body is one of the most common reasons why a project does not get funded. Before investing time in an application, make sure you are pursuing the right opportunity for your company and the program.
Define Your Capital Strategy
Before going after non-dilutive funding, founders should understand how this type of funding fits into their broader capital strategy.
Non-dilutive funding can be powerful, but it is not always the right tool for every company or every moment. “The best opportunities are usually tied to a specific business objective,” advises Funding Strategist Dr. Tarun Chari, “such as hiring technical talent, entering a new market, validating a technology, completing a demonstration project, or scaling commercialization.”
Founders should be able to answer:
- What are we trying to accomplish over the next 6 to 18 months?
- Which activities are already planned and budgeted?
- Which projects would accelerate growth if supported by external funding?
- Do we have the cash flow and internal capacity to manage an application and reporting process?
The strongest funding strategies are not built around chasing every available grant. They are built around identifying the right opportunities that align with the company’s roadmap.
Eligibility and Matching
Once you have identified a few priority projects, the next step is to assess which programs may be a fit.
Search tools and funding databases can be a helpful starting point, but founders should go deeper before committing to an application. Funding Strategist Victoria Fong recommends founders “dive into the program guides and reach out to the funding bodies directly where possible to confirm eligibility and gain clarity on program needs and expectations.” A short conversation early in the process can save significant time and help strengthen the eventual submission.
Data Room Preparation
Before you start applying, make sure your core documents are up to date. Most grant applications require supporting materials, and having them ready can make the process much smoother.
Data room documents to include:
- Current financial statements
- Financial projections
- Pitch deck
- Business plan
- Product roadmap and traction
- Commercialization plan
One document many companies overlook is a business plan. Even if you already have a strong pitch deck, some funders will still want a more detailed explanation of your market, business model, team, growth plan, and financial outlook.
Strong supporting documents help funders understand not only what you are building, but why your company is well positioned to execute the project.
Be Reimbursement Ready
Many non-dilutive funding programs operate on a reimbursement model, meaning companies often need to pay eligible expenses first, submit claims, and receive funding after those expenses are reviewed and approved.
“Before moving forward, make sure your company has enough runway to manage both its share of project costs and the timing gap between spending and reimbursement,” suggests Erin. “This is especially important for larger projects involving salaries, contractors, equipment, travel, or commercialization expenses.”
Funding bodies want to see that applicants have a meaningful stake in the project. Founders should be prepared to demonstrate that they can match the requested funding, since most grants require the applicant to contribute a portion of the total project budget. Depending on the program, this contribution may range from approximately 20% to 75% of total project costs and may be asked to come from cash, confirmed partner funding, eligible in-kind support, or other non-government sources.
Strategy and Support
There are many grants, subsidies, tax credits, and government-backed programs available to Canadian startups and scaleups. But “securing this funding is more challenging than it was even a few years ago,” warns Managing Director, Dr. Ania Sergeenko, “funding agencies, and therefore programs, are facing reduced budgets.”
At Thin Air Labs, our Funding Catalyst team supports founders with funding readiness, strategy, opportunity matching, application development, and reporting support. Our team that includes PhDs, MBAs and MBTs offers more than just grant writing. With close to $100M in funding secured for founders across North America, the Funding Catalyst experts provide end to end support and deep relationships with industry so founders can pursue the right funding opportunities at the right time, with stronger applications and a clearer path to impact.
Ready to Start?
