The ultimate goal of developing a new product is so that it can achieve commercial success and deliver a return on investment. Nevertheless, the journey of getting your product to market can be a costly one, which is why we can help you identify and secure appropriate sources of finance. Depending on the nature of your proposal; level of innovativeness; company structure; geographical location; and past experience within the chosen market – various options are available.
A popular method of partly or fully financing development projects using online platforms such as Kickstarter and Indiegogo. This concept enables consumers to purchase a product upfront, based on a video demonstration of a working prototype, and supported by a promise that the completed product will be launched within a given time-frame. A successful crowdfunding campaign affords an organisation to optimise, certify and manufacture their product with the confidence that it will be well received by a wider market audience.
Such investors are high net worth individuals who reinvest their wealth in to businesses on an equity basis. For example, an Angel may provide an organisation with £100,000 to develop and launch their product. In return, they may expect a 20% share of that business and intend on exiting within 3-5 years. Investment networks such as Xénos require a demonstrable prototype to be presented along with a robust business case that clearly outlines a plan for commercialisation.
These are available to businesses that display a high level of product innovation or have the ability to successfully create jobs. InnovateUK is a public body that operates at arms length from central government but report directly to the Department for Business, Energy and Industrial Strategy. Throughout the year, they release large sums of money to be invested in innovative businesses across an array of specialist sectors. The value of the funds on offer can range from £10,000 to £1million. Applicants are invited to bid for the funding on a competitive basis. InnovateUK finance successful projects up to 70% of their value.
Welsh Government seek to support SMEs (small to medium-sized enterprises) by offering 50% match funding for projects relating to design and manufacturing. The value of the finance provided is capped at varying amounts depending on the nature of the activities proposed, i.e. industrial research, product design, prototyping. This can be applied for on a non-competitive basis providing the organisation satisfies a number of qualification criteria. This source of finance is non-repayable.
County Councils across the UK also offer finance to start-up businesses who wish to develop new products. However, the conditions and availability of this support varies greatly depending on the particular county and their investment priorities.