Problem-Solution Fit: Your Key to Unlocking Grant Funding

What do funders crave above all else? A clear problem-solution fit (PSF).

They want to see a laser focus on a real-world issue paired with an innovative answer that solves it elegantly. Fancy features and futuristic designs are fine, but without a compelling PSF, your idea will struggle to win grants or investment.

At Grantify, we've seen hundreds of grant pitches – some sparklingly clear, others tangled messes. We know what works and what doesn't.

In this guide, we'll use real examples from winning Innovate UK grant proposals to show you how to find your PSF. 

You'll learn how to ditch the 'product-first' mentality, spotlight the problem, and craft a compelling narrative that makes funders believe your innovation is the game-changing solution the world needs.

Problem-solution fit (PSF) is the elegant dovetailing of a well-defined problem with a solution that feels inevitable – the missing puzzle piece the market never knew it needed. It's the core element that transforms an interesting idea into a fundable business.

Sometimes well-marketed products with weak PSF can generate buzz and snag impulsive investors or crowdfunding pledges. But grant assessors, who guard the purse strings of public money, are immune to hype. 

Bodies like Innovate UK scrutinise applications for rock-solid PSF. This isn't to dampen your ambitions – innovative grant applications must be daring – but the ambition has to be channelled into solving a specific, undeniable problem.

Although solving multiple problems sounds like better value for money, grant assessors favour proposals in which a single, compelling problem is paired with a perfectly tailored solution. This creates a narrative arc that's both emotionally resonant and factually solid. It paints a clear picture of the market gap you intend to fill and how your innovation will transform lives or industries. 

If your solution offers multiple benefits, that’s great, but a scattered approach to explaining the core unmet need, even if well-intentioned, can dilute your impact and muddle your message.

Problem

Construction projects face delays, cost overruns, and supply chain disruptions due to poor communication and inefficient on-site coordination.

Solution

A real-time project management platform with 3D modelling and augmented reality, allowing for visualisation of building plans on-site, remote collaboration, and early identification of potential conflicts to improve resource allocation and workflow management.

At first glance, the problem-solution pairing above sounds reasonable – and it may even touch on real issues faced in the construction industry. But on closer inspection, there are three distinct problems and four solutions, each a significant undertaking in its own right.

To a seasoned grant assessor or a shrewd private equity investor, especially those lacking specialised knowledge of the industry, this proposal would likely appear scattered and unfocused.

It’s all about spinning that water-tight Problem-Solution Fit narrative. A clearly defined problem, a solution that solves it perfectly, and stating exactly who that product is for: a tripod that can’t fall over.

Adam Hopkins

Senior Funding Consultant, Grantify

Each solution above feels like a precisely cut key engineered to unlock a stubborn, seemingly impossible problem. 

Whether streamlining video processing, tackling the e-waste crisis, revolutionising healthcare efficiency, or replacing harmful plastics, each innovation targets a single, undeniable problem with a tailor-made solution.

This sense of inevitability, this undeniable problem-solution harmony, is a hallmark of great PSF, and it's the feeling grant assessors are searching for. 

The ultimate results of the funded R&D – the market transformation or societal impact – might be years away. But with a compelling PSF, the assessors feel confident that these solutions are the right keys, crafted by the right minds, to unlock breakthroughs that will shape the future.

Not all problem-solution fits are created equal. While every startup aims to solve an issue, the true litmus test for both grant funders and investors is the potential value your solution creates. 

Let's consider three levels of PSF effectiveness:

The ‘Game-Changer’ Solution is where innovation shines and where grant funders like Innovate UK take notice. 

They want to fund ideas with the potential to:

• Improve lives on a broad scale (healthcare, accessibility, education, manufacturing, etc.).
• Boost the economy by creating jobs and new markets.
• Drive innovation leadership for the UK on the global stage.

By framing your solution's value in these terms, you align your project with the core goals of grant funding bodies and significantly bolster your application.

1. The ‘5 Whys’ Exercise

2. Competitive Analysis

3. Target a Niche or Submarket

4. Become a Storyteller

Finding the perfect PSF is an iterative process. Start with this framework, and don't be afraid to experiment, pivot, and seek expert feedback.

Nailed Your Problem-Solution Fit, Now What?

Problem: You know your solution is a game-changer, but translating that into a winning grant proposal still feels overwhelming.

Solution: Grantify's experts understand the complexities of grant funding and can guide you every step of the way.

Start the conversation with our 90-second eligibility quiz and discover the potential for your groundbreaking idea.

Grantify's customers submit their grant applications 7X quicker than applying solo.

In a recent round of government funding, 64% of all winners were produced by the Grantify platform.

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