Introduction
According to new analysis by HSBC Innovation Banking UK and Dealroom, UK innovation businesses were estimated to be worth a combined value of around £1 trillion at the end of 2024. This figure represents a 20% increase year-on-year when compared with 2023 and an overall increase of 9 times (900%) over the past 10 years.
The recent jump to the landmark £1 trillion figure for the UK innovation and technology sector has been attributed in part to the rapid increase in development and in-flow of funding into the broad use of AI across multiple innovation disciplines. There has also been a large amount of interest in businesses and start-ups establishing themselves in fintech, climate tech, health tech and business enterprise digital transformation.
Innovative UK tech start-ups were able to raise $16.2bn (£12.84bn) in venture backed funding in 2024, which was more than the total amount combined raised in the start-up ecosystems in Germany ($8.2bn) and France ($7.8bn). It is forecast that 2025 will see even more UK start-ups forming across the innovation sector with even larger amounts of investment available.
As well as funding from private financiers such as venture capital, the UK Government using its flagship UK Research and Innovation (UKRI) and Innovate UK organisations also offer public funds such as grants to businesses across all the major innovation sectors. Other innovation support organisations such as universities and sector specific support hubs also offer grants within specialist areas of interest and collaborations with their researchers, experts and academics. The UK is also an associate member of the European Union’s Horizon funding programme which offers a large amount of research and development funding and pan-European collaboration opportunities.
Certain early stage businesses and start-ups with highly untested but innovative prototype ideas that need to reach proof of concept and commercial viability stage may have a greater chance of receiving financial support via public backed grants. This is because those involved in private venture capital funding may not be as willing to risk their money on ideas that have not yet been proven.
A devolution white paper for England published by the UK Government in December 2024 outlines plans to give power to Mayoral-led local authorities to provide public backed funds to local innovative businesses. This will include aligning local research and development (R&D) assets such as universities and local tech clusters alongside local authorities and co-ordinating with Innovate UK to ensure that a steady stream of innovation funding is available based on specific local needs.
There are currently already established mayoral strategic regions such as Greater Manchester, Liverpool City Region, the North East, South Yorkshire, West Midlands, and West Yorkshire that will be able to develop bespoke innovation support offers for their regions once powers of devolution get the formal go ahead.
With all of these highly promising developments and opportunities for UK innovation businesses coming over the next few years in mind, there are already a large number of regularly published grant and public funding opportunities available for innovative businesses across all sectors.
Here Is A Selection Of The Latest UK Innovation Grant Schemes
i) APC 26: Industrialising Net-Zero Automotive Technology
The Advanced Propulsion Centre is running a competition that aims to support collaborative, pre-production research and development projects that achieve through the associated supply chain, the design, build and manufacture of net zero carbon emission vehicles. Funding up to £20 million is available.
Application Deadline: 14th March 2025
ii) Aerospace Technology Institute (ATI) Programme Funding for Non-CO2 Projects
The Aerospace Technology Institute is running a programme that provides funding for research and technology development in the UK to maintain and grow the UK’s competitive position in civil aerospace. This programme targets projects that address challenges with reducing non-CO2 emissions from the aerospace sector. Funding up to £18 million is available.
Application Deadline: Applications are invited on an ongoing basis
iii) Feasibility Funding Call
The Industrial Biotechnology Innovation Centre is running a scheme that will fund industry-led, collaborative research projects that demonstrate a proof of concept for a product, process or service with the potential to deliver jobs and/or economic growth to Scotland. The call welcomes projects in all areas of industrial biotechnology, including, but not limited to, biorefining, feed, food and drink, green chemicals and biotech in textiles, materials, and construction. Funding up to £30,000 is available.
Application Deadline: 31st March 2025
iv) Innovation Service
Exemplas is providing a service that aims to support SMEs in combating challenges and barriers to growth in West Yorkshire. The service includes access to an Innovation and Leadership Manager who will work with SMEs to facilitate the development and delivery of Growth and Innovation Action Plans. Match funding for improvement projects and access to further support via the Leadership service is also available. Funding up to £1,650 is available.
Application Deadline: Applications are invited on an ongoing basis
v) MAGICIAN Open Call 1 – Integration of New Functionalities in the Realm of Robotic, Manufacturing and Defect Detection System
The European Commission is providing a call that will support projects to enhance the capabilities of the Sensing Robot and Cleaning Robot through advanced technologies such as improved defect detection algorithms, more efficient rework techniques, or complementary AI modules that optimise their performance in real-time production environments. This is a cascade funding scheme. Funding up to £200,000 is available.
Application Deadline: 2nd May 2025
vi) Smart Data Challenge Prize
The Open Data Institute is running a competition that will enable up to 10 innovators to prototype Smart Data solutions with high potential impact in a specially created Data Sandbox. The selected innovators will receive grants totalling £50,000, as well as a range of non-financial support. Following the prototyping phase, the winning team will receive a further £50,000, and two runners-up will receive a further £25,000 each.
Application Deadline: 14th March 2025
vii) Programmable Plants
ARIA is providing a call that will fund ambitious research that aligns with the Programmable Plants opportunity space. The call seeks ideas that could change the conversation about what’s possible or valuable and that range from early-stage, curiosity-driven research through to pre-commercial science and technology in the arable and plants sector. Funding up to £500,000 is available.
Application Deadline: 9th April 2025
viii) Milk Round Accelerator
Digital Dairy Chain is running a programme that aims to support individuals and SMEs to develop technology ideas that could improve efficiency in the dairy sector, reduce its environmental impact or help it to meet net zero targets. Funding up to £10,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Innovation Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested businesses can speak to innovation advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.
Want To Find More UK Innovation Funding Opportunities?
If you want to see the full set of UK innovation funding currently available, please visit https://getbusinessgrants.com/
