Start up Fundraising with Grants || What I wish I knew…

Today I'm going to share 3 things I wish I knew when I was fundraising for my startup using grants, and these valuable insights are going to supercharge your fundraising journey and also help you to secure non-diluted funding to support your innovative venture. So if you're a startup founder eager to level up your fundraising game or to unlock the potential for non-diluted funding, you don't want to miss a single moment of this video. So buckle up and embark on a journey with me that might change the way you fundraise for your startup forever. Who knows? Hey guys, welcome back to the channel. I'm Stacy Chin from keepyourequity.co Our mission is to help science and tech startups secure non-diluted funding from federal programs such as the SBIR and the STTR. If you want to learn more about those programs, I'll leave a link in the description to another video below. We also work with lots of other startups, nonprofits, NGOs, and small and public businesses to help them secure non-diluted funding through federal grants and contracts. So first, let's talk about why grants are so wonderful. So grants are just one of the many ways founders can use to fundraise money money for their startup. However, raising non-dilutive capital through grants offers several distinct advantages for startups and entrepreneurs. First and foremost, grants allow founders to get access to the much-needed capital to support their businesses without giving away their equity or ownership of the company. And this means that founders can maintain full control over the decision-making processes, which can be very advantageous to many. Often come with fewer strings attached compared to equity-based fundraising, allowing startups more flexibility in how they allocate or utilize their resources and funds. Securing grants are also a great way to get validation and credibility, as they're typically rewarded based on the merit of the innovation or project. And this recognition can enhance a startup's reputation, make it even more attractive to potential customers, partners, and later investors. Lastly, non-dilutive funding through grants is accessible for a wide range of startups, including those in the early stages working on innovations, but high-risk projects, making it a very inclusive option that supports innovation and entrepreneurship across many different diverse industries. So I might be biased, but one fantastic avenue to get non-diluted funding through grants is through the federal SBIR and STTR program. In my past life, I was a CEO and founder of a medical device coding startup, and we successfully raised over $1.5 million of SBIR funding and grants from the state. Here we navigated both the Phase I and the Phase II programs through the NIH, as well as smaller grants from state grants and accelerators. And these non-diluted funding opportunities played such a pivotal role in advancing our technology all the way from a benchtop prototype to a functional model and then towards human testing. So given my firsthand experience fundraising through grants for my own startup, and then in my current role advising hundreds of startups on how to secure non-dilutive funding through grants, I have lots of valuable insights and lessons that I would have liked to known if I were to do it all over again, which is why I'm going to share those tips with you guys. So with that in mind, I'm going to share the top 3 things I wish I knew when fundraising for my startup using grants. So if you're a startup founder eager to enhance your fundraising journey and to secure non-dilutive funding, you don't wanna miss out on these tips. But before we do so, if you can take a moment to like this video, subscribe to this channel, and comment below, that would truly help us out a lot. And I'll give you so much more access to tips and tricks on how you can secure non-dilutive funding throughout your fundraising journey. And also don't forget to check out our website at keepyourequity.co for lots of other resources, advice, and templates. So the first thing I wish I knew when I was fundraising for my startup using grants was that securing grant funding can be just as equally as challenging as if you are fundraising through traditional angel investing or venture capital raises. And some can even argue that this fundraising strategy can even be way more difficult compared to traditional equity-based routes. And this is because while grants may be perceived as a more straightforward and accessible option, the reality is actually quite different. The grant process to get a grant across pretty much any opportunity is very competitive, with numerous startups vying for the same exact grant opportunity. And also, when preparing a grant application, It also comes with many stringent requirements and guidelines that have to be followed to the T, and any deviation from that can lead to disqualification. Also, the timelines to get grant funding can be so lengthy. Some can take several months in order just to submit a grant, and then others can take even up to half a year just to figure out whether or not you got the funding awarded. And the uncertainty of the success just adds more to the complexity because there's no guarantee of approval. Now, the second thing I wish I knew when I was fundraising with grants is that this is actually a game of persistence. When it comes to fundraising for startup using grants, it is not uncommon to encounter many, many setbacks, rejections, and prolonged waiting periods. However, what sets successful grant applicants apart from those that do not succeed in this space is their unwavering determination to persist in the face of these challenges. And this means that founders must continually search for suitable grant opportunities, meticulously craft compelling proposals that can take hours and hours or even months on end over and over again, and then learn from each successful or rejected application. So that means fundraising through grants continually means that you have founders how to continually refine your approach, address feedback, and consistently find new funding opportunities. And because of that, many startups can get discouraged, especially early on, by constant rejections or lengthy review processes. But all these hurdles are just part of the grant-seeking journey. So overcoming these obstacles with persistence not only increases your chances of securing funding but also demonstrates your commitment to your project success, which is a quality that many grant agencies would love and value. So understand that securing grant funding is a game of persistence. It's such a valuable lessons for any founders aiming to navigate the competitive landscape of seeking grant funding. And finally, the last thing I wish I knew is that when preparing for a strong grant application, this actually requires substantial investments of time, resources, and energy, all while knowing the chances of getting this award are quite slim. And this is because preparing a really strong grant application is an extensively time and resource-intensive process. Founders have to dedicate weeks, months together, all the necessary documentation, write persuasive narratives, and refine the details of the proposals. And what adds to this is the awareness that the chances of success to get that awarded is actually quite slim, just because of the really intense competition. Many grant programs have low acceptance rates, and even well-prepared applications can get rejected. But despite these odds, the commitment to pursuing grant funding remains a very strategic choice for startups because when successful, it can provide such the critical non-dilutive funding startups need to progress in their journey, along with validation that they're on the right path from that agency. So understanding the substantial investment it takes to, to prepare a really strong grant application, in addition to the inherent The inherent uncertainties involved is essential for founders who are considering raising funding for their startups using grants. And this is important to make sure they have realistic expectations and determination to pursue forward. So looking back at my journey and based on what I know now, if I had the chance to kickstart my venture all over again, would I go through fundraising with grants? I have to say, yeah, I would actually. Why, you ask? Well, knowing what I know now, especially those initial challenges, the strict application processes, the fierce competition, have all turned into opportunities for me to learn and grow. And I've come to realize the immense value these non-dilutive opportunities can bring for startups and founders like myself, and how persistence truly does pay off at the end of the day. Sure, it does take a ton of effort to put together a really strong application, and the chances for success aren't always in your favor, but the potential awards in terms of financial support and validation for your project makes it all worthwhile, in my opinion. And with each grant application, successful or rejected, I've sharpened my skill sets, expanded my network, and gained a deeper understanding of the grant writing process to navigate this grant-seeking world. And so without a doubt, I gladly would take that plunge again. So thank you so much for watching till the end of this video. I hope you found these tips helpful if you're thinking of raising money through grants. And if you haven't done so, please like, subscribe, and comment below. And make sure to check out keepyourequity.co for more resources, templates, and advice to help you on your non-dilutive fundraising journey. Thank you so much for joining me today, and I'll see you in a video very soon.