As the UK transitions to a bioeconomy picks up speed, green chemistry start-ups are playing a vital enabling role. New biobased chemicals, materials, and processes are critical to moving away from a petroleum-based economy. However, the road to market for new chemistries is not an easy one, and support of all kinds is vital to help these businesses grow. Funding can be difficult to find for green chemistry in particular, since clean energy and biotech are drawing most of the attention.
Searching for the right funding or business support as a green chemistry business in the UK can be overwhelming. We’ve put together a list of sources to help.
What type of support do you want?
This guide is focused on the support that would be particularly helpful to a green chemistry company. There are lots of other options out there that can work for any company, such as bootstrapping, crowdfunding, and loans. For an overview of these, you can check out this useful start-up funding guide from GrantTree. It covers widely-accessible funding sources that won’t be explored in this article, such as:
- ‘Friends, Family, and Fools’
- Tax credits and reliefs
- Crowdfunding
- Debt financing
In our guide, we’re covering a few types of support:
- Support only
These sources don’t provide funding, but don’t count them out! Mentorship, networks, or partnerships can steer your growth and add a lot of value to your company. - Outright funding
Grants, prizes, awards. Financial support with no (major) strings attached. - Equity funding
Financial support in exchange for shares in your company. You’ll likely get business support too. Think ‘Dragon’s Den’. - Mixed funding
Sources that offer a combination of outright and equity funding in different scenarios.
These categories contain a range of programs aimed at growing your business. Some sound similar but have subtle differences, which we’ve broken down for you as much as possible.
Sources of business support
Support only
These are sources of business support that don’t offer funding, but can be really helpful in lots of other ways. They can teach you the essentials of business strategy, connect you with helpful partners, or advise you on how to find and apply for funding.
Incubators are support and mentorship programs, available to early-stage businesses – even at idea stage. Instead of funding, most incubators offer co-working spaces and professional advice, allowing you and your team to build a network of both formal and informal support.
| Name | Explanation | What do they offer? | Eligibility | Commitment |
|---|---|---|---|---|
| Clean Growth UK | Green businesses innovation network | Tutorials, information, events, collaboration opportunities | Any climate- conscious business | None |
| Some LEPs (Local Enterprise Partnerships) | Regional business support administered via local Growth Hubs | Varies by Growth Hub | Varies by Growth Hub | Varies by Growth Hub |
| Innovate UK EDGE | Publicly-funded service for business support | Developing strategy, help finding funding | High- potential innovation SMEs | Variable length, tailored to needs |
| EC Enterprise Europe Network (EEN) | Support network for information and links with local innovation stakeholders | Advice, innovation management support | SMEs | None |
| Young Entrepreneurs Scheme (YES) | Global competition for raising awareness in idea commercialisation | Workshops | Early-career academic researchers | Intensive 3-day workshop; formal oral presentation |
| GC3 | Green chemistry start-up support network | Events, information | Paid membership | None |
| CPI Centre for Process Innovation) | Technology and innovation centre in North-East England | Support in securing public or private funding | Any stage | Variable |
| Imperial | Incubator, London; focused on science and technology | Office and lab spaces, workshops, seminars, events | Company less than 1 year old; Hammersmith and Fulham Borough resident | 6-week White City Innovators’ Programme |
| 3M Buckley Innovation Centre (3MBIC) | Incubator, Leeds / Huddersfield | Office and lab spaces | Any stage | Variable; use of facilities in Leeds / Huddersfield |
| Manufacturing Technology Centre (MTC) | SME support, focused on manufacturing | Product Manufacturing Incubator, access to Innovate UK REACH SME grant scheme | Any stage; manufacturing business | Variable |
Outright funding
These are sources of financial help for your business. They tend to be very competitive, since there is money on the line. This category covers competitions, challenges, and grants.
| Name | Explanation | What else do they offer? | Eligibility | Commitment |
|---|---|---|---|---|
| KTN (Knowledge Transfer Network) | UK network facilitating knowledge exchange and business innovation | Events, guidance, connections | Variable | Variable |
| ISC3 Innovation Challenge | Annual challenge in sustainable chemistry | Networking, annual investor forum | Theme changes annually | Multiple competition rounds over 9 months |
| Some LEPs (Local Enterprise Partnerships) | Regional Growth Hubs throughout UK; some offer funding | Varies by Growth Hub | Variable | Variable |
| Innovation Funding Service (IFS) | List of UK funding sources: grants, competitions, and collaborations | None | Variable | Variable |
| UCL (University College London) | List of competitions for start-ups | None | Variable | Variable |
| RSC (Royal Society of Chemistry) | Prizes (mostly for research and education) | None | Variable | Variable |
Equity funding
These are organisations or networks that invest in your business. They typically provide money up-front in exchange for shares of your company, expecting that they will see a return on their investment when your business succeeds. While losing some control of your business can seem disheartening, capital and additional support from a dedicated investor can hugely boost your company’s growth.
Venture capital is a private equity investment for start-ups with long-term growth potential. For a more in-depth explanation, click here.
Accelerators are support and mentorship programs, many of which offer funding – quite often in exchange for equity. They typically require you to demonstrate potential for growth. They’re often open to young “seed stage” companies.
| Name | Explanation | What else do they offer? | Eligibility | Commitment |
|---|---|---|---|---|
| Chemical Angel Network | Investors in chemical sciences companies | Forum, guidance | Seed and early stage | Variable |
| Green Angel Syndicate | Investors in companies that work to help solve climate change | Guidance | Early stage | Variable |
| Sustainable Ventures | Investors in Cleantech companies | Sustainable Accelerator | Early stage, cleantech, team of two or more | Variable |
| Sofinnova | Venture capital firm in life sciences | Guidance | Any stage, life sciences | Variable |
| Capricorn Sustainable Chemistry Fund | Investors in sustainable chemistry ideas | Guidance | Pre-revenue and revenue stage | Variable |
| Entrepreneur First | Accelerator, London | Guidance, ‘alumni’ community | Idea to early stage, 4-5% funding success rate | 6-month full-time platform; attending in London |
Mixed funding
These are sources of financial support for your business, but the type of funding varies on a case-by-case basis. In some cases, it may be unclear if there is funding available.
Open innovation platforms are essentially crowdsourcing, but for solutions to industry problems. Big corporations will share their technical challenges, encouraging small innovators to submit their solutions. This can lead to funding, partnerships, or joint ventures for innovators that can solve corporate problems. This blog post explains more about what they do, and some of the most successful examples.
| Name | Explanation | What else do they offer? | Eligibility | Commitment |
|---|---|---|---|---|
| European Innovation Council (EIC) | Accelerator Pilot | Guidance | SMEs, less than 3% success rate | Follow the program, equity may be given |
| BioCity (https://biocity.co.uk/) | Incubator and accelerator, Nottingham and Glasgow | Investment available | Any stage | Variable, use of facilities in Nottingham / Glasgow / Macclesfield |
| European Commission (EC) | Database covering loans/guarantees and equity funding | None | Variable | Variable |
| Leading Edge Only (LEO) | Open innovation platform | None | Variable | None |
| Unilever | Open innovation platform | None | Variable | None |
| EtonDigital | List of accelerators and incubators in UK | None | Variable | Variable |
Further reading
Additional resources for support information:
‘Innovation Canvas Library’ by KTN
A collection of short articles intended to tackle challenges that innovators have identified.
‘Accelerator vs Incubator: What’s the Difference?’ by Founders Factory
More information on what accelerators and incubators are, and their subtle differences.
‘Everything you need to know about Angel Investors’ by Wellers Accountants
More information on Angel Investors in general. There are many different ones, each targeting different sectors.
About Green Rose Chemistry
We believe chemistry can be the good guy. Green Rose Chemistry helps companies get their green chemistry to market, fast. If you’re looking for green chemistry research, sustainable science advice, or market expertise, we’re here to help – reach out today for a free 30-minute consultation.