You’re Getting SCAMMED by Grant Writers (WATCH OUTt)

The grant writing industry is way more scammy than founders realize, and that's the hard truth. And with SBIRs about to come back online, every single firm and consultant is gearing up for one thing: to sell you. And that means you're gonna get flooded with pitches. Everyone suddenly has a win grants or a proven system. But for you as the founder, you have to be really careful who you work with because the grant writing industry is a $6 billion market and everyone wants a piece of it. So lots of bad players are getting ready to optimize for one thing: to getting you signed, not getting you funded. I've been in this space for over a decade, and I've reviewed hundreds of proposals, and I can tell within minutes when a founder got bad help, even if they paid 5 figures for it. And the worst part? Most founders can't tell the difference. Yes, there are many talented grant writers and firms out there, and I want to help you identify those players. But here's the reality: there are also a lot of people charging serious money for work that has no chance of getting funded. So if you are a startup founder thinking about SBIRs or any other federal R&D contract or grants in 2026, I'm going to break down who you should actually work with, how to spot the red flags before you sign anything, what you should be really paying for these services so you don't waste your money, burn cash or your time and walk away with a proposal that would never get funded. So let's get into it. Hey guys, welcome back to the channel. If you join us for the first time, I'm Stacy Chin, a professional federal grants and contracting consultant who has helped to raise over $50 million of non-dilutive funding for startups developing innovations in biotech, climate and defense. Let's first review your options for grant writing support, because here's the reality. Federal R&D funding is not beginner-friendly. It's complex, high-stakes, and extremely unforgiving, which is why most founders don't learn the hard way. They outsource it. And that's where things get risky, because although there are many talented grant writers out there, there's also a huge gap in quality across freelancers, large agencies, and boutique firms. And it's easy for founders to make one wrong decision based on bad signals like low pricing, scammy marketing tactics, and whoever responds the fastest. not who actually can get them funded. And if you get this wrong, you don't just lose money, but you can lose an entire funding cycle. So let's break down how to evaluate each option properly and how you can choose the right partner based on your stage, your budget, and your goals. So let's first chat about freelancers. I've seen founders pick the wrong freelance grant writers and it costed them. That's the hard truth. However, freelance grant writers can be your biggest advantage or your biggest mistake if you can't tell the difference. And this is your most variable option where you'll see a huge range of experience, strategy, and quality. On the upside, the good ones are incredibly strong. They tend to be more flexible, hands-on, and have a much more customized approach. And the best freelancers think long-term. They care about relationships. They wanna see you win across multiple submissions, not just one. But this is where things get tricky. Pricing can be all over the place. Some charge hourly, some do flat fees. And some layer in success fees or incentive fees. And none of that actually tells you whether they're good or the right fit for you. But the reality is the best freelancers are really hard to find because they're usually referral-based, reputation-driven, and already working with people in your network. So the question doesn't become, should you use a freelancer? But rather, can you actually find and identify a really good one? Now, some founders assume large grant writing agencies is the safe way to go, but that's not always true. And here's where a lot of founders default to because they want to de-risk the process. Big name, structured process, feels safe. And to be fair, these firms can be very effective. They have systems in place. They've done this at scale. They know how to move fast. But there's a trade-off. They're built for volume, not necessarily for a specific problem, which means your proposal can end up feeling templated even though the technology isn't. I've also seen what happens behind the scenes. High turnover rates, junior writers doing most of the work, inconsistent quality depending on staff. So you might think you're hiring expertise, but you sometimes get a team of mixed experiences and different levels of support. And once you're in their systems, flexibility can drop. Limited edits, rigid pricing, less room to adapt. And here's the part that most founders miss. A big brand does not guarantee a strong proposal. There are plenty of large firms doing great work. Don't get me wrong. And there's also plenty that are just really good at selling. So you still need to vet them carefully and you make sure you do, do your due diligence before you go this route. Finally, let's talk about small boutique grant writing firms. Some of the best grant writers aren't at the big firms. They're actually in small, selective boutique firms. And if you're chasing logos instead of quality, you might be missing out where the real advantage is. Smaller teams, more expertise, less noise. Firms like Keep Your Equity are built very differently than large grant writing firms. They're not optimized for volume. They're optimized for outcomes, which means more attention on your proposal, more alignment with your technology, and much more hands-on experiences. And the best boutique firms act like your partners, not like a generic vendor. They stay with you across multiple submissions. They refine strategy over time, and they actually care whether you get funded. But that comes with tradeoffs. They can be more expensive and they could be more selective, and they may not be the best fit for every single founder. So this isn't a high-volume option. This is a high-touch option. And if you're a founder that values quality, reiteration, and long-term support, this is where you'll see the strongest outcomes. If you have deep pockets for this option. So since we know what type of grant writing support are out there, let's go over how to avoid scammers. You're either going to waste money on the wrong grant writing help or invest properly and give yourself a real shot of funding. There's really not much of a middle ground in this space. The grant writing industry has a wide spectrum of quality. With funding cycles opening up, freelancers and agencies are actively competing for your attention and budget. But here's the reality most founders miss: Good work is expensive for a reason. The difference between a competitive proposal and a weak one often comes down to experience and execution, not just effort. Here, rates will vary significantly. So your job as a founder is to define a realistic budget and be clear about the level of support you're actually going to need. Otherwise, you're not making a strategic investment. You're just reacting to pricing. So to help you steer clear of some of the scammers, let's go over some common tactics bad players typically use in this space. High success rates in grant writing is probably the one of the most misleading signals. Founders rely on, and they're used as a marketing tactic far more often than they should be. Of course, every founder wants to get funded, so when a firm claims a 60 or 70% success rate, it sounds compelling. But here's the reality: the average funding rate for many SBIRs and federal R&D programs is often around 10%, and the writing of the proposal is only a one small piece of a larger system. Funding decisions are influenced by program priorities, budget allocations, portfolio balance, and how well your innovation fits what the agency is trying to achieve at the moment. And they're dynamics happening behind the scenes that are not visible to most applicants. So while a strong writer matters, success rates alone are not a reliable way to evaluate who you should work with. What matters more is someone who can guide you strategically through the positioning, fit, and timing within the broader landscape. Also, most success rates in this industry are engineered to sell you, not inform you. They're not false, but they're often built in a way that makes them look far better than reality. And if you don't understand how they're calculated, you're making decisions on incomplete data. Typically, there are 3 ways firms can arrive at these numbers. First, they filter aggressively before you become a client. Long questionnaires, screening calls, internal scoring, all designed to only take on companies that already look fundable, and that alone will boost their numbers. Second, they control what counts. If a project doesn't move forward or doesn't meet certain conditions, it may quietly get excluded from their reported data. So the success rate you often see is often based on a much smaller curated pool. And third, some firms simply just stretch the truth or misrepresent the numbers. Bottom line, they're just flat out lying to you. So when you hear a success rate, don't just take it at face value. Ask how it's calculated, what gets included, and what gets left out. Focus on how that percentage is built because that's where the truth actually is. And here's another red flag to watch out for in the grant writing industry: low upfront fees paired with high incentive fees. Sometimes these models signal inexperience or misalignment in incentives. High-quality grant writers and consulting firms rarely operate this way because they know strong work in the space requires significant time, expertise, and upfront effort that can't be entirely deferred to a future outcome. What often happens instead is that these engagements often get offloaded to junior writers or individuals who aren't deeply as familiar with the grant writing landscape. While there may be rare exceptions where a firm takes on a bet on a client, those situations often involve extremely rigorous screening to ensure that the project has a high likelihood of success. So if the barrier of entry feels low, you should be asking why. Now let's discuss how much should you be paying for these grant writing services? This is the fun part, but I have to first mention a hard truth. If grant writing feels expensive, it's because you're underestimating how rare talent actually is in this space. And in federal R&D funding, average work doesn't just underperform, it gets rejected. This isn't about writing, it's strategy, positioning, technical depth, and understanding how reviewers think and score proposals. There is an element of craft here that only comes from experience, especially when you're navigating agencies, fit, and competitive framing. And that's why quality in this space comes at a cost. You're not just paying for words on paper, you're paying for someone who actually knows how to make your proposal competitive. And that level of quality doesn't come cheap. If you're hiring a freelance grant writer, expect a wide range and understand what you're actually paying for, because in this space, price is often a reflection of the experience, not just effort. So rates can span anywhere anywhere from $20 an hour all the way to $200+ an hour. And those numbers reflect very different level of experiences and capability. On the lower end, you're often looking at international writers or those early in their career who are still learning how to navigate the federal funding landscape. On the higher end, you're typically paying for a track record. People who have seen what actually gets funded, understand reviewer expectations, were either previous PIs or reviewers, and who can actually operate strategically and really effectively. Some outliers can charge well above the $200 an hour rate, and that usually comes with really deep domain expertise, a strong reputation, or specialization in a specific agency or technical area. So this isn't about a pricing spectrum, it's about a capability and experience spectrum. And here's the harsh truth. If you're seeking grant writing support from a large agency, if you think agency pricing is straightforward, it's not. And that's where a lot of founders can get caught off guard. Most firms don't charge hourly. They structure deals around upfront fees plus an incentive fee component. So for SBIRs, you might see anything from $2,500 on the low end to $25,000 on the more complex Phase II or Fast-Track applications. And then comes in the success fees, often pulled from the profit margins of your budget, sometimes reaching as much as 7%, even 10% on larger awards. And then when you step into federal R&D contracting, chasing budgets up to $50 million, the numbers can shift again. Upfront costs for these services can climb anywhere from $10,000 to $100,000, with additional incentive fees layered on top of it. And none of this is inherently wrong. But the key for you is understanding that price is both tied to the size of the opportunity and the level of strategic involvement involved. Also, please do not ask grant writers to work for free or purely on a success fee basis. The best people in this space don't do that. Strong operators know exactly how much effort goes into building a competitive proposal, strategy, technical framing, and iteration. They don't just defer all that value to an uncertain outcome. And that's why high-quality firms often always require an upfront investment, sometimes paired with a success fee or incentive fee. They're running a real business where the real cost and not gambling on whether or not you get funded. So if someone agrees to a no upfront, all success fee-based structure, it usually signals two things: they're inexperienced or they're optimizing to get you in the door. Either way, that's a risk you need to understand before going in. So with that, thank you so much for watching to the end of this video. I hope you found some ways to kind of help you to secure non-dilutive funding. And if you don't mind liking this video, subscribing to this channel, you'll learn more ways to keep your equity throughout your fundraising journey. And also don't forget to check out our website at keepyourequity.com where you'll find more tips tricks and advice and templates of how you can secure non-diluted funding. Thank you so much for joining me today, and I'll see you in a video very soon.