Get Grant Co Investment for UK SMEs: Growth Catalyst Investor Partnerships Round Two (Innovate UK) — Apply by 3 Feb 2026

If you run a UK micro, small or medium-sized enterprise and an investor has already raised their hand, this competition is the sort of funding door you want to walk through. Growth Catalyst: Investor Partnerships Round Two pairs grant funding from Innovate UK with private capital from a selected investor partner — meaning you get public money to stretch the work that private investment accelerates. The catch? You must be invited to apply by one of the investor partners. That invitation is the golden ticket that starts the engine.

Think of this as a matched sprint: the investor brings commercial ambition and market scrutiny, Innovate UK brings non-dilutive cash to lower technical risk and push milestones that make follow-on funding or sales much more likely. For companies ready to scale a product or prove a business model, the combined credibility of an investor plus Innovate UK on your application is powerful. But this is not a general call — it’s designed for specific, investor-backed opportunities with clear UK exploitation plans.

Below I walk you through what the competition actually offers, who should be knocking on that investor partner’s door, how to prepare a sharp application, and the common traps to avoid. You’ll come away with a practical checklist and a timeline so you can take action immediately.

At a Glance

What This Opportunity Offers

This competition pairs grant funding from Innovate UK with private investment from a hand-picked pool of investor partners. That pairing matters because grant money can be used to derisk technical or regulatory work that investors often shy away from funding directly — think testing, certification, pilot manufacturing runs, or expanding clinical evidence. The investor brings commercial validation, additional capital, mentorship, and market access. Together, the two capital sources create room to run bolder projects than either could on their own.

From a practical point of view, the grant lowers the effective cost of achieving key milestones. For investors, that can increase the chance of a successful round completion or an early commercial win. For companies, it reduces dilution pressure because some of the heavy lifting is funded on the grant side. But don’t treat Innovate UK funding as free money without strings; you’ll have reporting duties, milestones, and expectations about UK exploitation.

This opportunity is particularly well-suited for projects that have a clear route to market in the UK and where additional technical or regulatory progress materially increases the odds of commercial success. Typical uses include: scaling a prototype to manufacturing readiness, demonstrating performance to prospective customers, completing regulatory studies, or building demonstrators that unlock large procurement opportunities.

Who Should Apply

You should apply if your company is a UK-registered micro, small or medium-sized enterprise, plans to do the project work in the UK, and intends to exploit the results from or in the UK. But the most important eligibility gate is the investor invitation. Only firms invited by one of the selected investor partners may submit.

This means two practical categories of companies are likely to be successful:

• Investor-led growth companies: Startups or scaleups that already have seed or Series A backing from one of the investor partners. For example, a medtech SME with a UK-based VC lead that needs the extra runway to complete clinical validation could use grant funds to fund trials while the investor funds commercial activities.

• Pre-revenue technology firms with a credible go-to-market plan: A deep-tech company invited by an investor who sees commercial potential but wants technical milestones met before a larger round. The grant funds the de-risking work; the investor funds commercial expansion.

Real-world example: a materials company invited by an investor to apply might use the grant to build a pilot production line in the UK, proving manufacturability to a large OEM — an outcome that turns investor interest into purchase orders.

If you’re an international business or a UK business without an investor invite, this call isn’t for you. Likewise, consortia or multi-partner applications aren’t allowed; this is for single applicants only.

Insider Tips for a Winning Application

This is where the rubber meets the road. The investor invitation gives you leverage, but the application still needs to tell a crisp story that balances technical ambition and commercial realism. Here are practical, experience-based tips that reviewers and investor partners pay attention to.

1. Tell a tight investor-backed narrative. Start the application with a one-paragraph executive summary that explicitly states: which investor invited you, the amount of private investment involved, what the grant will pay for, and the key commercial milestone (e.g., regulatory approval, pilot customer contract, manufacture-ready prototype). Judges want to see the private sector is committed and that your plan uses the grant in a focused way.

2. Separate technical risk from commercial risk. Be explicit about what the grant will reduce: is it a scale-up challenge, a regulatory data gap, or a reproducibility problem? For each risk, list the deliverable that mitigates it and the measurable criteria you’ll use to show it’s solved.

3. Align milestones to investor decision points. Investors think in terms of tranche funding and go/no-go milestones. Structure the project timeline so that each Innovate UK deliverable meaningfully increases your valuation or unlocks the next private tranche. If the investor is willing to co-sign, note that in a letter.

4. Budget with honesty. Don’t try to over-claim. Create a bottom-up budget showing staff time, materials, testing, and any subcontractor quotes. If the investor is covering certain costs, be transparent. Reviewers will check that the grant fills a genuine gap.

5. Prepare for due diligence. Investors who invite you will expect sophistication on IP, commercial contracts, and governance. Have your cap table ready, IP ownership laid out, and a short commercialization plan that shows how UK exploitation will happen. Missing documents slow things down at assessment time.

6. Use the investor relationship strategically. Ask the investor for a specific letter of intent that describes the co-investment, the expected investor milestones, and any non-financial support (customer introductions, procurement channels). A vague endorsement is less useful than a clear commitment.

7. Practice concise writing. Review panels read lots of applications. Use plain English, short paragraphs, and clear metrics. The best applications are those that someone outside your exact domain can read and understand the value within minutes.

These tips aren’t theoretical: projects that show clear investor alignment, measurable milestones, and credible budgets are the ones that progress to award.

Application Timeline (Realistic and Actionable)

Work backward from the official deadline: 3 February 2026, 11:00 UK time. Plan to submit at least 48 hours before the closing time to avoid technical issues.

• 10–12 weeks before deadline: Confirm investor invitation details and get a written invitation or statement. Start drafting the project summary and budget.
• 8 weeks: Complete first full draft of the application and share it with the investor for feedback. Begin assembling supporting documents (cap table, IP statements).
• 6 weeks: Obtain letters or statements from the investor partner and any subcontractors. Lock in quotes for testing or manufacturing.
• 4 weeks: Internal review and rewrite. Run the application past at least two people — one technical and one commercial.
• 2 weeks: Finalise budget, double-check attachments, and confirm your registration on Innovate UK’s application portal. Run a final proofread for clarity and typos.
• 48 hours before deadline: Submit. Hold a backup copy and screenshot the confirmation.

Starting early also gives you room to negotiate terms with the investor and make sure the co-investment is documented clearly.

Required Materials (What to Prepare and How to Present It)

Innovate UK competitions typically require a project description, detailed budget, declarations, and supporting documents. For this investor partnerships round, make sure you prepare the following and present them clearly:

• Project description: A narrative that explains objectives, technical approach, milestones, success criteria, and how the grant and investor funds will be used differently. Keep it evidence-based with timelines and deliverables.
• Budget breakdown with justification: Show how much grant funding you’re requesting, line items, staff effort, subcontractor costs, and how private investment complements these items.
• Evidence of investor invitation and co-investment: A signed letter from the investor partner detailing the proposed investment amount, expected timing, and any non-financial commitments.
• Business documents: Company registration, VAT details, financial statements or management accounts, and your cap table.
• IP and exploitation plan: Clear statements on who owns background IP, how foreground IP will be managed, and the plan for exploiting results in the UK.
• Risk register and mitigation plan: Identify top 5 technical/commercial risks and how the project addresses them.
• CVs or bios for key staff: Short bios that demonstrate capability to deliver.

Presentation matters. Use headings, short paragraphs, and tables where appropriate. If you reference technical tests or quotes, attach the supporting documents.

What Makes an Application Stand Out

A standout application marries hard technical evidence with a sharp commercial plan. Reviewers look for clarity and measurability: what will change because of this project, and how will you prove it?

Projects that score highly typically show these elements: precise milestones tied to commercial outcomes (e.g., “complete third-party validation of X to enable purchase order from Y”), demonstrable investor commitment (a monetary figure and a date), a realistic budget that shows where grant funds are essential, and a plan for UK exploitation that goes beyond vague claims.

Another differentiator: customer validation. If you can attach letters of interest, pilot agreement drafts, or procurement pathways in the UK, you move from speculative to actionable. Also, applications that honestly present risks and a credible mitigation strategy feel more trustworthy than ones that gloss over difficulties.

Finally, governance clarity — who manages the project, how decisions are made, and who owns the deliverables — gives funders confidence that money will be spent efficiently.

Common Mistakes to Avoid (and How to Fix Them)

Many strong companies stumble on a few recurring errors. Here are the pitfalls and how to avoid them.

• Relying on vague investor support. A “we’re supportive” line is weak. Fix: get a signed commitment letter that states investment amount, timing, and conditions.
• Over-ambitious milestones. Don’t promise moonshots that can’t be demonstrated. Fix: break work into incremental, measurable milestones and show how each de-risks the next.
• Poor budget alignment. Asking for grant funds to pay for items the investor is already funding raises red flags. Fix: clearly map which costs are covered by the grant and which by private investment.
• Ignoring UK exploitation. If your plan centres on selling primarily outside the UK, you risk rejection. Fix: include a clear route to market in the UK — customers, procurement, or manufacturing plans.
• Late submission and portal issues. Systems can fail. Fix: submit early and keep confirmation screenshots.

Fixing these before submission substantially improves your odds.

Frequently Asked Questions

Q: Do I have to be a UK company to apply? A: Yes. Applicants must be UK-registered micro, small or medium enterprises and carry out the project in the UK.

Q: Can more than one organisation apply together? A: No. This competition is for single applicants only.

Q: What role does the investor play? A: The investor must invite you to apply and provide private investment. The application should show how that investment complements the grant funding and what milestones it will unlock.

Q: Is Innovate UK funding equity or grant? A: Innovate UK provides grant funding, not equity. The private investor may take equity according to their terms.

Q: Can the project include international partners? A: Project work must be carried out in the UK and results exploited in the UK. If you need specific subcontractors abroad, discuss eligibility early with Innovate UK guidelines and the investor — but primary activity should remain UK-based.

Q: What happens after award? A: Awarded projects will have reporting obligations, milestone checks, and potentially site visits. Expect regular progress reports and a final deliverables review.

Q: How competitive is this? A: It’s selective due to the investor invitation requirement. Quality and investor credibility matter. Prepare thoroughly and use the investor relationship to strengthen your case.

How to Apply / Get Started

Ready to act? Start by confirming the investor invitation in writing and asking the investor for the specific statement you’ll include in your application. Get your company paperwork in order — registration, recent accounts, cap table, and IP position — then draft a one-page project summary that aligns the grant funding to investor milestones.

Visit the official opportunity page for full requirements and to submit: https://www.ukri.org/opportunity/growth-catalyst-investor-partnerships-round-two/

Before you hit submit, run the application past a technically savvy reviewer and a commercial colleague. If you can, ask the inviting investor to read the final draft — their input can be decisive. Submit early and keep confirmation receipts.

This competition is a pragmatic way to bring public grant funding and private capital together to move technologies through the tricky middle ground between lab and market. If you’ve got an investor invitation and a clear UK exploitation plan, this could be the fuel your company needs to cross into scale-up territory. Good luck — and get that investor letter in hand first.