Transitioning from academia to industry involves changing your way of thinking in many ways, and writing grant proposals exemplifies this shift. In academia, grant writing often centers on the depth and significance of the science itself. In the industry, however, the approach broadens to include business viability, market potential, and financial planning. Here, we delve into the key differences between academic and industry-focused grants to illustrate how the requirements—and the mindset—diverge.
Grants Are Still Non-Dilutive—but There’s a Catch
Both academic and industry grants offer non-dilutive funding, meaning you don’t have to give up equity in your company. However, many industry-focused grants, especially those from government and innovation bodies, come with a repayment clause. This repayment is often linked to revenue generation, not profitability.
For example:
You may be required to repay up to three times the original grant amount once you start earning revenues.
This repayment structure can be a surprising shift for those accustomed to the academic model, where grants are more like one-time, no-strings-attached investments in research.
This dynamic underscores the importance of presenting a strong, viable business case in your grant proposal.
Science Is Still Key, But It’s Not Enough
In academia, the strength of your hypothesis and methodology often carry the proposal. While solid science is still critical for industry grants, it is only part of the equation. Industry grants demand that you answer questions like:
What is the market opportunity?
Who are your target customers, and what problems will your product solve for them?
What is the size of your addressable market?
What will your product sell for?
How competitive is your pricing compared to existing solutions?
Are customers willing to pay this amount?
This requires extensive market research and data, areas often underemphasized in academic grants.
Profitability and Financial Viability Take Center Stage
The focus on financials is another major departure from academic grants. Key considerations for industry proposals include:
Cost of Goods Sold (COGS):
Can you produce your product efficiently and at a profit?
Market Size:
Does your business model show the potential for sustainable growth?
Your grant application should clearly outline your financial projections, demonstrating not just the science but the pathway to profitability.
It’s About Reducing Risk for the Funder
Industry grant reviewers want assurance that their investment is low-risk and likely to generate returns. Convincing them involves showcasing:
The strength of your team:
Highlight experience, diverse expertise, and a proven track record.
A sound business plan:
Detail your roadmap, from product development to market entry.
Show contingency plans and risk mitigation strategies.
Ultimately, funders want confidence that your venture will succeed—and repay the grant if required.
Shifting the Mindset
Adopting this industry-focused approach to grant writing can be challenging for those transitioning from academia. It requires not only a shift in priorities but also a new skill set in market analysis, financial forecasting, and business planning.
Fortunately, you don’t have to navigate this alone. With years of experience writing grants for organizations like the Israel Innovation Authority, EIT Foods, and the EIC Accelerator, I can help you craft a proposal that speaks to industry expectations. Together, we’ll ensure your grant application is not just competitive but also tailored to meet the specific demands of industry funders.
Let’s bridge the gap between your groundbreaking science and a compelling business case that secures the funding you need.
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