How to Use Data to Win Grants and Attract Investors
Learn how to leverage data to create compelling grant proposals and investment pitches. Grantify has helped innovators secure £125M+ in funding.
Data is the secret weapon that turns a good pitch into a winning proposal. It shows funders that your project isn't just a hunch – it's backed by hard evidence.
The best part? By using data effectively, you're not just convincing grant assessors – you're building a persuasive narrative that can resonate with equity investors, too.
This guide answers all your burning questions, from what kind of data to gather to where to find reliable sources (without getting lost in an internet black hole).
Even if you're an early-stage startup with limited data, we'll show you how to strategically present what you have to make a strong case.
Let's infuse your proposal with the persuasive power of data. Ready to get started?
In a highly competitive funding landscape, your innovative idea deserves to stand out. But how do you convince funders that your solution isn't just a gut feeling, but a carefully researched plan with a high chance of success? This is where data becomes your superpower.
This leads you nicely into being able to demonstrate the impact that your solution may have and why it should receive funding.
Likewise, for investment funding, data such as customer demographics, market research, and financial forecasting will all be strengthened by including independent, quantified evidence of your arguments or figures, along with a clear need for the business.
Think of data like the ingredients in a recipe for your grant application or investment pitch. You need a mix of different elements to create a truly tempting dish.
Here's a breakdown of the key ‘data flavours’ you'll want to incorporate.
Remember: The specific mix of data you'll need depends on the specific grant programme and the nature of your project.
If there is a need, shortcoming, or inefficiency that could be improved upon, and data-driven quantified examples can be used to project the improvements that are possible, you can make a persuasive argument that investment in one's solution is the logical thing to do.
Now that you know the types of data to include, let's see how to weave them into your proposal to create a compelling narrative.
These examples come from Grantify clients who we’ve helped secure hundreds of thousands in grant funding.
This type of data demonstrates that your solution will have a predictable, measurable and considerable positive impact on the problem you have highlighted.
While the real-world examples above showcased how to use data to define your problem and solution, let's shift gears and explore how a well-crafted financial plan can make your proposal even more compelling.
Keep in mind that even if you're pre-revenue or early-stage, funders and investors want to see that you've carefully considered the costs involved and have a realistic strategy for using their investment wisely.
To illustrate this, let's dive into a hypothetical scenario: an AI-powered educational platform for primary schools.
This example will walk you through the key financial components you'll need to address in your grant proposal.
Project Summary
A 12-month project to develop an AI-powered educational platform for primary schools.
Total project cost: £353,500.
Cost breakdown:
Labour Costs: £220,000
- Project Lead: £70,000 (Experienced educator with a background in AI integration, allocated 90% to the project).
- AI Developer: £60,000 (Experienced AI developer, allocated 95% to the project).
- Educational Content Specialist: £50,000 (Experienced educator specialising in primary education, allocated 80% to the project).
- New Hire: UX/UI Designer: £40,000 (To be recruited upon grant success, allocated 90% to the project).
Overheads: £44,000
- £44,000 (20% of total labour costs).
Subcontractors: £60,000
- Data Annotation Service: £50,000 (To annotate educational materials for the AI model).
- Regulatory Advisor: £10,000 (To ensure compliance with data privacy and educational standards).
Materials: £29,500
- Software Licences: £10,000 (Specialised AI development software).
- Cloud Computing Resources: £10,000 (To host and train the AI model).
- Testing Devices: £2,000 (Tablets for pilot testing in schools).
- Travel & Subsistence: £0 (Omitted due to minimal travel needs and focus on value for money).
- IP & Patent Filing: £7,500 (To protect the platform's novel AI algorithms).
Match Funding: £106,050 (30% of total project cost)
- £60,000 from internal cash reserves.
- £46,050 conditional investment from an angel investor contingent upon a successful Smart Grant application.
(Match funding is the portion of the project costs your business must contribute to be eligible for the grant funds. Check out our article matching funding explained.)
This hypothetical example gives you a taste of how to structure your financial data, but crafting a truly competitive financial narrative requires a nuanced understanding of each funder's priorities and a knack for strategically presenting costs and projections.
Our platform goes beyond the basics, offering custom-designed financial templates, in-depth guidance, real-world examples, and expert insights to help you optimise every financial detail and maximise your chances of securing the funding you need.
Data is the backbone of any persuasive grant proposal, but where do you find credible sources without drowning in a sea of information?
Here’s a quick rundown of where to look for each type of data you’ll need:
1. Problem and Solution Data:
Industry Reports: Seek out reports from reputable market research firms like Statista, Gartner, or IBISWorld. These reports often contain valuable data on market size, trends, and customer needs, which can help you define the problem and demonstrate the potential for your solution.
Government Statistics: Explore data published by government agencies such as the Office for National Statistics (ONS), the Department for Business, Energy & Industrial Strategy (BEIS), or the National Institute for Health and Care Research (NIHR). These sources often provide data on social, economic, and environmental issues, which can be used to quantify the problem you're addressing and demonstrate the potential impact of your solution.
Academic Research: Look for relevant studies and findings published in peer-reviewed academic journals. Academic research can provide in-depth analysis of specific problems and potential solutions, adding credibility to your proposal.
Internal Metrics: If you have any data from previous projects, pilot studies, or customer feedback, use it to showcase your track record and demonstrate the impacts of your solution.
2. Financial Data:
Benchmarking Studies: Research industry averages for costs, salaries, and pricing models to inform your budget. This will help you create a realistic and competitive budget that aligns with industry standards.
Financial Modeling Tools: Use software tools to create projections and analyse your project's financial viability. This will help you demonstrate your project's potential return on investment (ROI) and long-term sustainability.
Investor Databases: Explore databases like Crunchbase or Beauhurst to understand funding trends and investor expectations. This can help you tailor your financial projections and pitch to appeal to potential investors.
Quotes from Subcontractors: Collect detailed cost estimates from potential subcontractors to ensure your budget is accurate and comprehensive. This demonstrates your due diligence and commitment to responsible financial planning.
3. Supporting Evidence & Credibility Data:
Third-Party Statistics: Corroborate your claims with data from reputable sources, such as government agencies, industry associations, or academic institutions. This adds credibility to your proposal and strengthens your arguments.
Letters of Support: Obtain endorsements from key stakeholders who can vouch for your project's value. This will demonstrate that your project has support from relevant organisations and individuals, increasing its chances of success.
Scientific Studies: Cite relevant research findings to strengthen the scientific validity of your proposal, especially if your project involves innovative technology or scientific research.
While those general sources are a good starting point, the task of gathering relevant data from reputable sources can feel daunting to even the most data-savvy founder.
Without knowing exactly what to look for or where to find it, market research can be time-consuming and potentially very costly (a single industry report can sometimes cost thousands).
To save you time and money, Grantify equips you with a powerful in-platform arsenal of data tools and guidance on how best to use them, including:
- Free Statista Enterprise Access: Tap into millions of data points, articles, and industry reports—normally costing thousands of pounds—for free.
- Free Data Gardener Enterprise Trial: Easily identify and size your UK B2B customer base with this powerful market intelligence tool. All Grantify clients get an exclusive two-week free trial to the enterprise version of Data Gardener (worth £2,000!). This trial is completely free, and there is no obligation to sign up for the paid version (but if you do, Grantify clients get a 30% discount).
- Google Scholar: Expert advice on how to use scientific literature to back up your claims and demonstrate the innovative nature of your project.
With Grantify, you don't just get access to raw data; you get guidance on how to strategically select, interpret, and present the most impactful evidence to captivate funders and investors.
Related posts
