Principles, examples, and what founders usually get wrong.
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1. Grant Writing Principles
Step 1: Identify the Aim | Check alignment with what you will use funding for and the outcome it will generate.
For example the Ārohia Trailblazer Grant seeks to achieve its objective “by supporting innovative activity that has the potential to generate significant spillover benefits as set out in the Ministerial Direction”. |
Step 2: Be Specific | Define the customer problem, how the solution works, and customer impact or benefit in plain terms.
The reviewer may not have domain expertise so don’t lose them in jargon or excessive technical detail |
Step 3: Match Budget to Outcomes | Be prepared to provide costings and quotes that match the individual components or deliverables from the funding.
The reviewer needs to be able to approve the expenditure attached to the grant |
Step 4: Use Plain English | No acronyms, minimise sector jargon and write content for non-technical/scientific readers. |
Step 5: Evidence Co-funding | Be able to prove you have the ability to meet co-funding requirements of the Grant
Show source and amount of available and/or future funds, can be cash or capital raise.
Possible to have up to six months to secure monies for share of co-funding. |
Step 6: Assign the Right Writer | Use the team’s knowledge to assign individual sections eg CTO = R&D; CFO = financials; capture the data and then aim for clarity and conciseness keeping in mind the reader and Grant objectives.
For example the Research & Development Tax Incentive (RDTI) does require the reader to have a level of technical knowledge or subject matter expertise to assess an application for General Approval. |
Step 7: Know Your Numbers | Grants require financials outlining expenses such as salaries and materials and consumables plus Income.
Be prepared to submit financial statements for your start up and co-funding.
Be clear on what you can fund, when, and how so the reader understands grant funding is not “wasted”. |
2. What Founders Get Wrong — and How to Fix It
Mistake | Example of What Not to Do | Best Practice | Example of Best Practice |
Misalignment Between Startup and Grant | Seeking commercial funding from a R&D focused Grant | Start with the funder’s lens and understand the objectives of the Grant | This project will provide the Student with real-world R&D experience and learn new skills as an active member of the product development team developing new and exciting products for our customers. |
Applying Too Early | Applied for Callaghan Innovation Grant before building capability | Time your Grant to optimise its impact to the stage the business is at. Some Grants are only one time. | Apply after product/market fit testing, with financial statements and R&D programme/plan written covering at minimum time period of Grant |
No Forecast or Co-funding Proof | “We’ll figure out the rest later.” | Show funds available and clear pathway to co-funding such as a capital plan or cashflow forecast | “We’ve secured $80K from a lead investor and forecast a $250K raise in Q4 from angel investor groups.” |
Using Jargon
(writing for a technical or scientific reader with an assumed level of knowledge or expertise) | “A multi-stakeholder orchestration framework leveraging AI workflows.” | Use plain English which means economic use of words and at a level the reader can understand. Use bullet points to keep sentence structure tight. | “An online tool to help financial advisors respond faster and accurately to clients using templates.” |
Not Checking Eligibility
(for a Grant and/or alignment of funded activity with objectives of Grant) | Applied without checking grant prerequisites | Register your start up as a company which will is required to be eligible for a Grant. Check Grant objectives to ensure alignment of funded activity. | “As a spillover benefit, within the bioplastics sector, this project will generate new knowledge and learnings that others can use to create new innovations from organic material.” |
Missing Clarity of Communication
(to enable reader to understand application often with overuse of buzzwords or soundbites) | “We’re building a revolutionary paradigm.” | Assign the right writer | CTO writes R&D sections; CFO writes budget and forecasts |
Vague or Mismatched Financial Details
(to stages or outcomes) | “$80K for product development.” | Provide worksheet that captures detail to allow reader to match funded activities to outcome | “$7500 for review of patent and freedom to operate (FTO) search before finalising R&D programme” |
Missing Proof of Ability to Raise Required Funds | “We hope to raise soon.” | Capital journey map with project and funding milestones | Attach capital journey map and if timing right draft pitch deck |
3. More Grant Writing Examples: Bad vs Good
Principle | Bad Example | Good Example |
Alignment Between Startup and Grant | “Our tool will grow revenue by 200%.” | “Our R&D project creates new knowledge and IP to develop a novel bioreactor for waste treatment ” |
Be Specific | “We’re building a revolutionary paradigm.” | “We increase sensitivity and specificity of antimicrobial resistance by 60% vs current tests.” |
Budget Expenditure vs Outcome | “$80K for product development.” | “$80K to test and deliver final prototype for field testing.” |
Use Plain English | “A multi-stakeholder orchestration framework leveraging AI workflows.” | “A web based tool to help doctors refer patients to healthcare providers within a primary healthcare treatment pathway” |
Evidence of Current and Future Co-funding Sources | “We have some seed capital and will figure out the rest as we go.” | “We’ve secured $80K from a lead investor with a $250K raise planned in Q1 next year as in our cashflow forecast.” |
Assign Writers to Relevant Sections of Application | CFO writes full application. | CTO writes R&D/technical section; CFO provides financials and commentary. |
Provide Evidence of Expenditure | “Budget includes software and staff time.” | “Includes quotes outlining work plan and costs from suppliers and a breakdown of hours against project milestones for internal labour costs ” |
Measurable Outcomes Aligned to Grant Submission | “It’ll help us complete market validation.” | “Four interviews with subject matter experts from procurement and clinical services working in radiology for hospital hubs/facilities on the West Coast to validate assumptions before progressing to capital raise” |
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More Writing Resources:
- Strategic Grants: https://community.net.nz/resources/strategic-grants/grant-application-writing-examples
- Public Trust: https://www.publictrust.co.nz/resources/11-tips-for-a-writing-a-great-charitable-grant-application
- Hutt City Council: https://www.huttcity.govt.nz/people-and-communities/community-funding/community-grant-proposal-guide
- NZCT: https://www.nzct.org.nz/grants/making-a-successful-grant-application
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