On 7th July 2025, Innovate UK launched an exciting new funding opportunity aimed at helping early-stage UK businesses bring their groundbreaking technologies closer to market. The Growth Catalyst Early Stage: New Innovators competition will provide up to £10 million in funding to UK-registered micro and small businesses that have not previously received Innovate UK project funding. This initiative is designed to help high-potential startups progress toward becoming high-growth, scalable businesses. Applications are open now and must be submitted by 11:00am on Wednesday, 6th August 2025.
The competition is part of Innovate UK’s wider Growth Catalyst programme, which pairs grant support with targeted business development support delivered through Innovate UK’s Business Growth (formerly EDGE) and Business Connect teams. By combining funding and tailored mentorship, Innovate UK aims to help early-stage firms accelerate their innovation journeys, validate their commercial ideas, and lay the foundations for scale-up.
Each successful applicant can receive between £25,000 and £50,000, covering 100% of eligible project costs. This funding will be delivered through a phased payment model: 70% is issued at project start, 20% after evidence of spend, and the final 10% upon successful project completion and approval. Projects must start on 1st November 2025 and run for a duration of 3 to 6 months, with a strict end date of 30th April 2026.
To qualify, applicants must be UK-registered micro or small businesses (typically under 50 employees) that have not previously received Innovate UK funding for a project, though previous awards through initiatives such as Young Innovators, Catapults, or Business Growth are permitted. This competition is ideal for startups at a formative stage of development, seeking to demonstrate proof of concept or early commercial traction.
The scope of the competition focuses on innovations that align with at least one of the UK government’s five critical technologies:
• Artificial Intelligence (AI) and Machine Learning (ML) – including new AI tools or innovations in trusted and responsible AI.
• Semiconductors – such as UK-based advancements in semiconductor design, materials, or manufacturing processes.
• Future Telecommunications and Advanced Connectivity – including technologies like photonics, open and interoperable networks, and cyber-secure or quantum-safe communications.
• Quantum Technologies – spanning scalable quantum computing platforms, quantum-classical hybrid algorithms, and applied quantum systems.
• Engineering Biology – involving synthetic biology, bioengineering tools, and novel sustainable biomanufacturing approaches.
Eligible projects must be business-led, UK-focused, and capable of demonstrating clear innovation, commercial potential, and societal or economic benefit. Projects must deliver more than academic research; Innovate UK is looking for solutions that show promise for commercial application and real-world impact.
Applications will be assessed across four core areas, each weighted equally:
1. The Idea – how innovative the concept is, the problem it solves, its market potential, affordability, and appeal to investors or customers.
2. Impact and Added Value – including how the project will benefit the applicant’s business, the UK economy, society or the environment, and why public funding is necessary.
3. Business Resources and Capabilities – an evaluation of the team’s ability to deliver, routes to market, and how the business addresses equality, diversity and inclusion.
4. Work Packages and Costs – clarity and justification of costs, project milestones, risk assessment, and freedom to operate from an IP perspective.
Applications are submitted online and must also complete non-scored sections relating to financial assistance declarations, compliance with animal welfare policies, export controls, and national security considerations. Subcontracting is allowed within the UK and internationally, but overseas suppliers must be justified with evidence that UK alternatives were explored.
Key dates for the competition are as follows:
• 7th July 2025 – Competition opens
• 8th July 2025 – Pre-recorded briefing available
• 6th August 2025 (11:00am) – Deadline for submissions
• 2nd September 2025 – Applicants notified of outcomes
• 1st November 2025 – Project start date
One important condition is that applicants can only submit one application to this competition. If a business submits more than one proposal, only the first will be considered. Additionally, the funding is classed as Minimal Financial Assistance (MFA), meaning a business must not have received more than £315,000 in public funding over the past three financial years.
This competition forms part of a broader government effort to catalyse innovation in sectors seen as essential to future economic growth and national resilience. By focusing on the five critical technologies (AI, semiconductors, connectivity, quantum, and engineering biology) the UK aims to secure global leadership in emerging markets.
Applicants are strongly encouraged to align their projects closely with one or more of these strategic areas and to clearly demonstrate how the funding will help them make significant progress toward commercialisation. Innovate UK is particularly interested in projects that can show:
• A clear route to market or customer validation
• The potential to unlock future private investment
• Societal or environmental benefit
• A strong case for public support to de-risk early innovation
Businesses interested in applying should act quickly, as the deadline is fast approaching. With only one application permitted per business and a strong focus on quality, clarity and strategic alignment, early preparation and careful planning are essential to success. For a free consultation to discuss your project idea, contact RedKnight today.
