Everything You Need To Know About Getting New Business Software #6

You know you need new software and have picked your solution and your partner.  At this stage, it might be possible to secure some financial support for your project (amongst other things)

Applying for Software Funding

If you are an emerging business or have been identified as high growth, it might be possible for you to get some grant funding for your software project.

Typically the implementation services might be part funded, or a full scoping exercise might be funded up to a point.  Software licenses are usually not included in the grant funding award.

If you are in Scotland, Scottish Enterprise have a wealth of experts and various grant and funding options available to businesses of certain size and criteria.  Speak to one of their technology advisors to get the most up to date information on how to apply for grants towards your innovative technology project.

You can also take a look around the Finance Scotland website for some more funding ideas. They provide some really practical information and support on helping start ups and moving you from microbusiness to SME.

Since investment in new business software is deemed to be a crucial step towards the ongoing success of your business – and pump priming you for growth – most funding bodies will offer some kind of assistance with the costs.

If you are preparing to raise finance for your business overall, here are a few ideas to get you started:

 

Local Government

EOS Technology Investment Syndicate – an entrepreneurial led group of private angel investors who provide seed funding to start p or early stage science and technology businesses.

SMART:SCOTLAND – a Scottish Enterprise service which provides grant funding to Scottish SMEs to undertake things such as feasibility studies

Scottish Loan Fund (SLF) –  offers funding to established businesses with sustainable operating profits and positive cash generation across all sectors

 

Angel Investors

Angel Investors can be a good place to start when looking to secure funding. Your typical angel investment can be between £10-750k.  Decisions can be made quickly as long as you have the basics completed early – such as a brilliant idea backed by a thorough business plan, evidence of performance to date (including audited accounts) and a reasonable P&L for the up coming year.  Try and find a group who match your industry sector or have the same sector experience.  This will make the concept easy to visualise and also provide a rich source of added expertise.

Here are some technical investors you might be interested in checking out:

Gabriel Investments – recognises the need to ensure a safe environment for the right business ideas, innovation and ambition in Scotland and have created an access to funding for pre-start up and start-up businesses.   The ideas are put before the Gabriel Syndicate and one idea is chosen for investment, nurturing and support.

Archangels – an Edinburgh based angel syndicate which has been investing in Scotland early stage technology business for over 20 years.  Typically £10 million per annum is invested into Scottish businesses by this group of over 60 investor members.

Investing Women – A community of female angel investors whose goal is to help other female entrepreneurs achieve growth in their business

 

Innovation Funding

There is funding to be had for innovation and development – especially if you work in collaboration with Scottish Universities and their academic expertise.  Companies such as Interface can connect you to academic expertise and can help with funding options.   Since 2009 they have helped issue over £4.5m in funding to innovative businesses to help develop products, services or processes.  If you are in the technology or innovation sector, Email them for more information.

 

Crowdfunding

Crowdfunding, or crowd sourced capital, though less conventional, can be a great way to get build investment through small amounts of donations.  There are multiple crowdfunding websites available, but remember to make sure your idea is protected through intellectual copyright before releasing it into the public domain.

Crowdfunding can be a useful PR exercise too – you never know, your idea might go viral.  But make sure you don’t set your target too high.  If you fail to reach your targeted amount by your deadline then all investment will be returned to the donors.  And make your concept easy enough to understand – if people don’t “get” it then they won’t want to back it.

 

Good luck!

 

Written by Emma Stewart – Sales & Marketing Director at Cofficient

We provision really smart business software for really smart businesses – of all sizes.  To talk to us about a feasibility study or how to secure funding for your software project, get in touch