Drafting The Perfect Funding Application
Securing funding from programmes or funds can be game-changing for early-stage companies, but first, it often involves a rigourous application process. Based on extensive research and our experience working with early-stage ventures, we’ve developed a framework to guide founders through each critical step.
STEP 1 – IDENTIFY
The first step is to identify programs and opportunities that align with your organization’s current stage, short-term strategy, and mission, ensuring a focused approach that maximises value while respecting both your time and that of potential investors.This involves not only searching databases and websites but also networking with other organizations and professionals in your field.
Once you have identified a suitable opportunity, the next phase is to thoroughly read and understand the guidelines provided by the funder.
DETERMINING MANDATE FIT
One of the most crucial initial steps in applying for any programme or fund is ensuring alignment with its mandate.
- Investment Thesis or Objectives: Is the programme focused on innovation, impact, or specific sectors (e.g., fintech, green tech)? Does your business address its priorities like job creation or sustainability?
- Geographic Eligibility: Does the programme fund companies in your country or region? Are there geographic preferences for high-impact or underserved areas?
- Stage of Development: Are you at the correct stage (pre-seed, seed, or growth) required by the programme?
- Impact Outcomes: Does your business model align with the programme’s preferred outcomes (e.g., sustainability, gender equality, or job creation)?
STEP 2 – EVALUATING THE CRITERIA: How to Ensure a Strong Fit with a Programme or Fund
Once you’ve confirmed mandate fit, the next step is to evaluate the key selection criteria to ensure your company addresses them effectively. During the Savant Build Programme we breakdown the criteria that most programmes assess and provide tips on how early-stage companies can demonstrate readiness in each area.
- Business Model & Market– Assess the clarity and viability of the business model, as well as how well the company understands and targets its market.
- Financials– Evaluate the company’s financial operations, revenue streams, and the strength of their funding strategy.
- Team & Capability– Focus on the founding team’s expertise, track record, and their ability to scale the business.
- Impact & Sustainability– Consider the company’s potential for job creation, economic contribution, and alignment with sustainability goals.
- Innovation– Examine the novelty of the company’s solution and how effectively it addresses significant market challenges.
- Product Development & Operations– Review the company’s approach to product development, risk management, and adaptability.
- Programme Fit– Assess how well the company aligns with the objectives and values of the Build Programme.
TIP: CUSTOMIZATION IS KEY – Provide Specific, Data-Driven Responses
One of the most common mistakes applicants make is submitting generic responses (AI you say? – we chat about this a little later) that fail to address the unique criteria of the programme. To stand out, you need to craft answers that are highly tailored and backed by evidence. Here’s how to do it:
- Reference Specific Metrics: When discussing traction, impact, or financial growth, use hard data (e.g., “We achieved a 200% increase in revenue from 2023 to 2024” rather than vague phrases like “substantial growth”). Include figures such as customer growth, revenue run rate, or market share whenever possible.
- Connect Directly to the Programme’s Goals: Understand the programme’s objectives and explicitly link your business model, product, or impact to them. For example, if a programme focuses on sustainability, demonstrate how your operations reduce carbon emissions or conserve water resources.
- Provide Real-World Examples: Use case studies, pilot results, or customer success stories to demonstrate your ability to deliver results. Concrete examples make your application memorable and credible.
- Show Measurable Outcomes: For each key criterion, include projections or KPIs to show how your business will benefit from the programme’s support (e.g., “With funding, we will scale production capacity by 50% within 12 months, reducing unit costs by 30%”).
- Demonstrate Customization for Each Section: Tailor your responses in line with the different criteria. For example:
- For Business Model: Highlight how your revenue model will evolve and scale during and after the programme.
- For Financials: Detail how the programme’s funding will address current financial challenges or accelerate growth.
- For Programme Fit: Show you’ve researched the programme by mentioning specific elements (e.g., mentorship, access to partners) and how you’ll leverage them.
By doing this you demonstrate that you understand what the programme values and how your business is uniquely positioned to benefit from and contribute to its success. Tailored, specific applications convey a sense of preparation and commitment, setting you apart from competitors relying on broad or generic submissions.
STEP 3 – DRAFTING THE APPLICATION
Drafting a winning application requires more than just filling out answers to questions—it’s about presenting clear, tailored responses that resonate with reviewers. Here’s a step-by-step approach to crafting compelling answers:
CORE PRINCIPLES TO FOLLOW
- Understand What the Reviewer is Looking For in Each Question
- Read each question carefully to understand the intent behind it.
- Break down complex questions into smaller parts to ensure you cover all key aspects.
- Review scoring criteria (if available) to understand how your response will be evaluated.
- Be Specific, Not Vague
- Provide concrete data, examples, and metrics where possible.
- Avoid broad statements like “our solution is innovative.” Instead, explain how your innovation is unique and measurable.
- Use an Answer Framework for Each Question
- Before writing, outline your key points to ensure your response is well-structured.
- Focus on clarity and coherence—connect your answer directly to the program’s goals or selection criteria.
- Tailor Responses to the Programme’s Objectives
- Highlight aspects of your business that align with the programme’s goals (e.g., job creation, impact, or innovation).
- Use language that reflects the fund’s mission and objectives without sounding generic.
EXAMPLE: QUESTION AND ANSWER FRAMEWORK
QUESTION EXAMPLE:
Business Description & Value Proposition
Description of your business (what product or service you offer, the problem it solves, and who your target customers are). Include how your solution addresses your customers’ pain points and delivers the desired outcomes (max 300 words).
ANSWER FRAMEWORK:
- Business Overview:
- Start with a concise statement about what your business does and the product or service you offer.
- Target Market:
- Identify the primary audience for your solution. This could be a specific demographic, industry, or customer segment.
- Pain Point:
- Describe the key problem or challenge your target customers face.
- Solution & Outcome:
- Explain how your product/service addresses the pain point and delivers tangible outcomes (e.g., cost savings, efficiency improvements, or environmental impact).
SAMPLE RESPONSE:
“Our company, GreenGrow Innovations, offers a sustainable vertical farming solution designed for urban food suppliers. Our target customers include mid-sized grocery stores and restaurants that face challenges sourcing fresh, local produce year-round due to high transportation costs and supply chain disruptions. GreenGrow’s modular hydroponic systems allow customers to grow produce on-site, reducing supply dependency and ensuring consistent freshness. By utilizing 90% less water and optimizing indoor space, our solution addresses cost inefficiencies while promoting sustainable agriculture.”
TIP: THE ROLE OF LARGE LANGUAGE MODELS IN DRAFTING FUNDING APPLICATIONS
Large language models like ChatGPT and DeepSeek are valuable tools when preparing funding applications, but they should be used wisely. While they can help with structuring responses, improving grammar, and generating ideas, relying on them entirely can result in generic content that reviewers may easily identify.
HOW LARGE LANGUAGE MODELS CAN BE HELPFUL:
- Streamlining Initial Drafts:
- These tools are useful for creating first drafts quickly, especially when dealing with multiple sections like business descriptions, market analysis, and financial summaries.
- They can generate content suggestions, frameworks, or even templates for different sections of your application.
- Improving Grammar and Clarity:
- Use models to refine your writing, ensuring that the final version is polished and professional.
- They can help remove redundant phrases, simplify overly complex sentences, and improve overall readability.
- Expanding Ideas:
- When you’re stuck or facing writer’s block, language models can generate ideas or alternative ways to present key information.
- They can help you brainstorm new ways to frame your problem statement or highlight your competitive advantage.
THE PITFALL OF GENERIC RESPONSES:
- Identifiable Patterns:
- Reviewers can often recognize when content has been generated by tools like ChatGPT due to overuse of generic phrases and overly polished but shallow language.
- Responses generated by AI can lack depth and specific examples, which are key to creating a winning application.
- Lack of Customization:
- While language models can generate broad content, they don’t inherently understand the nuances of your business or the programme you’re applying for.
- Applications with generic language often fail to demonstrate a tailored fit with the fund’s objectives.
BEST PRACTICES FOR USING LARGE LANGUAGE MODELS:
- Draft Your Thoughts First:
- Before turning to a language model, outline your response using your unique insights.
- This ensures that the final message is personalized and showcases your deep understanding of the topic.
- Use AI as a Refinement Tool:
- Once you’ve drafted the initial content, use AI to polish it. This helps maintain originality while ensuring the language is professional and compelling.
FINAL THOUGHTS
Securing funding requires more than simply meeting eligibility criteria—it involves telling a compelling, data-driven story that shows how your business is uniquely positioned to succeed. By ensuring mandate fit, customizing your responses, and leveraging AI tools effectively, you can craft an application that leaves a lasting impression on reviewers and maximizes your chances of success.
