How to Secure Funding for Entrepreneurial Ventures

Dr. Shankru Guggari, Ph.D. | May 30, 2025

What differentiates breakthrough research that changes industries from brilliant ideas that stay trapped in labs?  Most often, it comes down to money.

For researchers and new entrepreneurs, getting funding is the make-or-break step between scientific discovery and real-world impact. Although today's funding landscape offers many opportunities for research-based ventures, many smart innovators remain unaware of how to access them.

The existing startup ecosystem provides real opportunities through venture capital, angel investors, government grants, and programs designed specifically for academics moving into business. Understanding these options and how to present your innovation effectively can determine whether your work remains theoretical or transforms into a viable business.

This post provides practical tips for entrepreneurial researchers, showing them how to get startup funding while still maintaining the quality and purpose that makes their innovation valuable.

Understanding the Funding Landscape 

Before you begin approaching investors, you need to know what types of funding exist and which ones make sense for your specific stage. This knowledge saves your time by eliminating the options that aren't right for your contemporary situation.

Research-to-Startup Transition Funding

Transitioning from research to business requires specialized funding that recognizes the unique challenges of commercializing academic work. If you are still working in a university setting, look into translational research grants. For instance, if you are a US-based innovator, programs like the NSF's SBIR/STTR can help you determine if your work has any commercial potential. Many universities also offer innovation funds to principal investigators and students interested in commercializing their research. This type of academic entrepreneurship funding typically comes with fewer strings attached than traditional investments. 

Pre-Seed and Seed Funding

The initial funding for your business helps you validate your concept and demonstrate that customers actually want it. Most early-stage startup investment comes in two phases: pre-seed to build your initial product and test basic market interest, and seed funding to refine your product and gain real customers. At this stage, you will likely turn to angel investors (especially for tech startups), accelerator programs, friends and family, government startup grants, or university funds. However, it is important to note that each of these sources has different expectations regarding returns and involvement in your business.

Beyond Seed Funding

Once you have demonstrated to investors the value of your entrepreneurial product, larger funding rounds can boost your overall growth. After gaining real traction, you can pursue Series A funding from venture capital firms. These investors typically focus on how efficiently you acquire customers and whether you have a solid plan in place to scale your business significantly. 

Bonus Tip: Series A generally emphasizes scaling the proven models, while Series B supports team building, infrastructure, and market reach. Series C, on the other hand, is typically used for major expansions such as acquisitions or preparing for an IPO. Thus, each ascending series has a higher valuation.  

Choosing the Right Funding for You

The funding that works for one startup might be completely wrong for another. Consider what works best for your specific business. For instance, a biotechnology company might rely heavily on government grants and investors who are comfortable with long development timelines, whereas a software startup might move quickly from angel funding to venture capital. Social enterprises often blend impact-focused investors with traditional funding. Each funding source has different requirements. Government grants do not take ownership but require detailed reporting. Venture capital offers more money but expects significant equity and rapid growth. Finding the right fit means matching funding sources to your current needs and your long-term vision.

Steps to Secure Funding for Entrepreneurial Ventures  

Securing funding for entrepreneurial ventures is not easy and can be exhausting at times. However, if done wisely, everything might fall into place. Below are the steps that will guide you towards the right path:  

1. Define a Clear Value Proposition

Start by translating your research into market terms that non-specialists can understand. What specific problem does your innovation solve? Who experiences this problem most acutely? What makes your approach better than existing solutions? For research-based ventures, this often means simplifying technical concepts and identifying clear benefits. Strong value propositions clearly quantify both the problem (such as a product gap or current costs) and your solution (like efficiency gains, cost savings, or improved outcomes). Make it immediately clear to all stakeholders why your innovation holds commercial potential and how it extends beyond academic interest.

2. Craft a Strong Pitch Deck for Research-Based Ventures

For researchers moving into entrepreneurship, pitch decks need to balance technical credibility with business potential. Include your scientific breakthrough, but focus on its commercial applications as well. A good pitch deck usually comprises 10–15 slides covering the problem, solution, market opportunity, business model, competition, team qualifications, current traction, go-to-market strategy, financial projections, risks and mitigation, vision, and a specific funding request with planned use of funds. Avoid excessive technical jargon that might confuse investors with no scientific backgrounds. Use visuals to explain complex concepts and focus on outcomes rather than processes. Your pitch deck is your primary tool for communicating with potential investors. Therefore, it needs to narrate a compelling and impactful story. 

Note: Keep it simple. Learn from experienced science communicators who simplify complex ideas for different audiences, and be ready to confidently address any related investor queries.

3. Identify the Right Type of Funding

Different funding sources have different priorities and expectations. Finding the right match saves time and improves your chances. Research which funding sources align with your venture's stage, industry, and goals. For academic entrepreneurs, early options often include university innovation funds, commercialization grants, and business plan competitions. As you progress, look for angel investors interested in your technology domain, strategic industry partners, and specialized venture capital funds. Take time to study each potential funder's portfolio, typical investment size, and focus areas. The right investors bring not only capital, but also connections, expertise, and credibility. All of these can significantly contribute to your venture’s short- and long-term success.

4. Build Credibility Through Minimum Viable Products and Pilots

Before seeking significant funding, develop at least a minimum viable product that shows your technology's core functionality. For research-based ventures, arrange pilot projects with potential customers who can test your solution in real settings. Document these implementations carefully, capturing both numbers and feedback. These early demonstrations significantly reduce risk for potential investors by proving both technical feasibility and market interest. They also help you refine your solution based on user feedback before scaling, potentially saving expensive mistakes later.

5. Write a Strong Funding Proposal

While pitch decks provide a visual overview, many funding applications require detailed written proposals. For academic entrepreneurs, these documents need to balance technical depth with business acumen. Start with a compelling executive summary that captures your value proposition and funding request. Then provide market analysis showing significant opportunity, technical information establishing feasibility, clear business models showing revenue potential, and conclude by sharing realistic financial projections. Include specific milestones you expect to achieve with the requested funding and how these advances will position you for future growth.

Government startup grants in particular require careful attention to proposal guidelines, including specific formatting requirements and evaluation criteria. Many successful academic entrepreneurs partner with experienced grant writers or business developers for their first major funding proposals to ensure they speak the language investors understand.

Real-World Challenges in Fundraising

Securing funds for entrepreneurial projects can be challenging for many researchers. Therefore, it is important to be prepared for the following when raising capital for your venture.

  • The Academia-Investor Gap: The gap between academic thinking and investor priorities creates real friction for researchers moving into business. Brilliant scientists often stumble when potential funders ask basic questions like "Who is your customer?" or "Why now?" What seems obvious in a research context often needs complete reframing for angel investors for tech startups.​​​​​​​​​​​​​​​​​​​
  • Early Setbacks:  The sheer volume of rejection surprises most academic entrepreneurs. Various successful founders report pitching to 40+ different sources before securing early-stage startup investment. This persistence factor is not discussed enough in entrepreneurial funding for researchers; the emotional resilience required is substantial.
  • Research Timeline Gap: Time horizons create another major tension. Many research-based ventures need 7–10 years to reach the market, but most venture capital firms operate on 5-year-long funding cycles. This fundamental mismatch means you might need to cobble together government startup grants, strategic industry partnerships, and other capital rather than only relying on traditional venture capitalist funding.
  • Intensified Competition: Increased competition has changed the game too. For instance, ten years ago, many SBIR grants received only a handful of applications. Today, some funding calls see hundreds of proposals competing for the same dollars, requiring much more sophisticated proposal writing and relationship building.
  • Geographic Limitations: Geographic disadvantages persist despite remote work trends. Entrepreneurs outside major innovation hubs still struggle to access networks where informal introductions lead to funding conversations. Academic entrepreneurship funding often requires building bridges to these networks deliberately and systematically.

Resources and Support Systems 

Finding the right support is crucial for your journey to become a funded entrepreneur from the researcher. Following are some of the key points: 

  • University Commercialization Offices: These should be your first stop if you are a faculty member or student. Most university commercialization offices employ experienced staff members who understand both the academic and business contexts. They will help protect your intellectual property and often know exactly where to find entrepreneurial funding for researchers at your stage.
  • Incubators and Accelerators: Not all programs are created equal. Look for those with proven track records in your specific field. The best ones offer space and also teach you how to secure funding for a startup through hands-on coaching and direct investor connections.
  • Government Commercialization Programs: For researchers based in the United States, the federal SBIR/STTR programs remain the gold standard for non-dilutive capital, but don't overlook their training components. For instance, researchers who complete the I-Corps customer discovery program, also US-based, are far more successful in subsequent funding applications. Similarly, programs like India’s BIRAC, the UK’s ICURe, the EU’s EIC Accelerator, and Australia’s ON Prime offer early-stage researchers non-dilutive funding and commercialization training, helping them validate innovations and accelerate market readiness through customer discovery and business support.
  • Industry Networks: Insights gained from those with prior experience are invaluable. Find entrepreneurs who successfully commercialized research similar to yours and learn from their funding journey. These relationships often lead to critical introductions to the right investors.
  • Digital Resources: Digital tools can save significant time by identifying targeted funding opportunities. Just be strategic—applying for everything can waste valuable time that’s better spent on high-probability prospects.
  • Entrepreneurial Fellowships: These specialized programs combine funding with mentorship and are sometimes specifically designed for researchers. The competition is fierce, but they can be transformative for those who get in.

Researchers who successfully build funded companies rarely do it alone. Moreover, they strategically tap multiple resources at the right time throughout their commercialization journey.

Conclusion and Next Steps 

The journey to secure funding for a startup based on your research findings requires smart work, wise preparation, and a thick skin. Although rife with challenges, this path offers tremendous rewards for those who approach it strategically. Your success in getting financial backing relies on translating your technical work into business terms that investors can understand and envisage. Therefore, designing communications that highlight commercial potential without compromising the integrity of your innovation is of paramount importance.

Different funding sources serve different purposes at various stages. Non-dilutive government grants cover early technical development, while angel investors often provide both capital and crucial industry connections for your subsequent growth phase. Entrepreneurs who most effectively secure funding for a startup treat the process as relationship-building instead of transactional. They use available resources, learn from mentors who have navigated similar paths, and stay flexible when initial approaches fail to work.

Last but not the very least, remember that your scientific or technical expertise gives you a distinct advantage. When combined with effective funding strategies, it can transform your research breakthrough into a sustainable business with commercial and several other real-world implications.