How grants work and why startups should consider it as a funding alternative

Lyra Reyes
How grants work and why startups should consider it as a funding alternative

Grants may not be for everyone, so here are the basics to find out if it’s for you.

 

There is an array of financing alternatives available for entrepreneurs. From investments to loans, entrepreneurs have utilised all available means that would allow them to obtain the resources they need. There is another option to consider, though.

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Government agencies, foundations, and even individuals sometimes offer cash to assist innovation, with conditions that said cash be used for a specific project, goals, or even industry. If startups are up for some strong competition, and if they’re are willing to work to meet stringent criteria, they may apply for a grant.

Also read: How raising money for a fund is different from raising as a startup

For industries and technologies that have a lot of funding available, it is sometimes the grant-giver that searches for entrepreneurs that meet their requirements, though the criteria and conditions for the grant are no less stringent.

Here’s a quick view into grants:

 

 

Grants aren’t for everyone. But if you’re pretty much set on your product and business model, and you have a specific project that needs funding, you might want to check if there are grants available for that.

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