Innovating is essential to maintaining any organization’s time competitiveness, but funding is often needed to bring ideas to reality. Below are the most common ways to finance innovation projects.
Internal budget:
Allocating a specific budget for innovation is key. This funding is usually used for R+D+i projects, adoption of new technologies, enhancement of the entity’s innovation ecosystem and talent development, among other innovation activities.
Private grants:
Research potential donors, review grant guidelines and criteria, and develop a personalized proposal. Remember to include letters of support and follow compliance requirements.
Government incentives:
Take advantage of tax credits for R+D+i, grants for innovation and specific programs for small businesses and sustainable projects. Innovation policy is consolidated at European, national and regional level.
Private investors:
Angel investors and venture capital provide financing in exchange for equity. Angels are usually individuals who invest in early stages, while venture capital comes from investors looking for high returns on high-risk projects.
Crowdfunding:
Use crowdfunding platforms to raise small amounts from many investors. Create an engaging campaign, promote it and keep your backers informed.
Corporate Partners:
Strategic alliances, joint ventures, corporate incubators and technology licensing agreements can provide resources and access to new markets.
With a combination of these sources, your organization can secure the funds needed to fund initiatives that deliver customer value.