Pros and Cons of Grant Funding

There are pros and cons to grant funding.

Here is a list of pros:

The funding does not need to be paid back.

The funding is non-dilutive as no equity is given.

Grants are easy to identify.

Grants won can help in raising funding from angels and venture capitalists.

Grants increase your standing in the community as it shows validation of your work.

Here is a list of cons:

Grants take a substantial number of hours to complete.

The grant request must align with the goals of the granting organization.

Pursuing a grant takes time to come to fruition.

There’s a great deal of competition for the grant funding.

Granting organizations restrict how the funds can be used.

Granting organizations require updates, reports and in some cases audits.

Granting organizations have specific and often complicated rules for applying and using the funding. 

Consider these pros and cons before pursuing grant funding.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.