How to navigate the project setup phase for your Innovate UK grant

The funding you’ve been awarded is conditional. Before you can begin your project, you must complete the project setup phase, which includes financial checks, documentation submissions and legal agreements – all within a strict timeframe. A well-managed setup phase ensures that your project can start on time and is positioned for success.

This phase can be complex, but with the right approach, you can avoid unnecessary delays and maximise your funding.

Understanding the project setup phase for Innovate UK grants

The project setup phase begins once you receive your grant award notification from Innovate UK and must be completed before your project officially starts.

• The process is managed through Innovate UK’s Innovation Funding Service (IFS) portal, where you will submit all required documents and confirm key project details.
• Funding is not guaranteed at this stage. Your grant offer is conditional upon completing Innovate UK’s due diligence checks.
• The setup period usually lasts between 30 and 90 days, depending on the complexity of your project and the responsiveness of your team.
• A project monitoring officer (PMO) will be assigned to oversee your project. Establishing a strong relationship with them from the start can streamline the process and reduce friction later.

Failing to complete this phase correctly can delay your funding or even put your grant at risk.

Key steps in project setup

To ensure a smooth and timely process, you’ll need to complete several key actions within the IFS portal:

Confirm key project personnel (within the first 7 days)

• Assign and confirm a finance officer responsible for grant finances and reporting.
• Assign and confirm a project lead who will act as the main point of contact with Innovate UK.

Verify project details

• Project start date – Ensure the proposed start date is realistic, as Innovate UK does not typically allow extensions. A misjudged start date can result in lost time and funding.
• Project location – Confirm where the R&D work will take place.

Submit key documents

• Exploitation plan – An updated business case outlining how you will commercialise your innovation post-project, demonstrating expected financial return and economic impact.
• Collaboration agreement (if applicable) – A legally binding agreement between project partners outlining roles, responsibilities and intellectual property (IP) terms. This process can often take months to finalise, so it’s essential to start early, especially when collaborating with an academic partner.

Financial due diligence

• Most Innovate UK grants require match funding. For SMEs, this typically means covering 30% of your total project costs with liquid cash (not in-kind contributions).
• You must provide financial evidence, including:
  • A detailed record of your management accounts
  • Cash flow forecasts
  • Profit and loss statements
  • Investor commitment letters, if external funding is being used for match funding

Ensuring all financial documentation is accurate and ready to submit will help prevent delays in grant approval.

Update spend profile

• Your project budget must be re-confirmed in the IFS portal.
• While you can often request to reallocate funds between budget headings, you cannot request more funding than was awarded.
• A well-prepared budget reduces the risk of financial discrepancies later in the project, making it easier to meet expenditure forecasts and submit claims without issues.

The role of your monitoring service provider (MSP)

Your monitoring service provider (MSP) is a third-party professional assigned to oversee your project from setup to completion.

Their responsibilities include:

• Reviewing your documentation to ensure compliance with Innovate UK’s terms and conditions
• Validating quarterly progress reports and financial claims
• Flagging any risks or concerns to Innovate UK and escalating issues where necessary
• Reviewing and validating any project change requests (PCRs)

What they do not do:

• Provide hands-on support in preparing your documentation
• Prepare and submit financial forecasts and claims on your behalf
• Play any role in your project delivery or strategic decision making.

A strong relationship with your MO will help ensure a smoother funding process. It’s essential to flag any issues with them as soon as they arise, as any lack of confidence in your documentation and process could lead to increased scrutiny and delays in receiving your funding claims.

Common pitfalls to avoid with project set up

• Waiting too long to start – The 90-day window is shorter than it seems. Delays in legal or financial submissions can put your project start date and funding at risk.
• Assuming the grant is guaranteed – Your funding is conditional and subject to successful completion of project setup.
• Ignoring financial due diligence – Match funding must be evidenced through clear financial evidence, and if using external investors, their commitments must be documented early.
• Overlooking legal agreements – Collaboration agreements, particularly with universities or multiple partners, can take six to eight weeks to finalise. Start this process as soon as possible. The Lambert Toolkit is a good place to start for companies collaborating with academic institutions.
• Poor-quality documentation – Submissions that require multiple revisions slow down approvals. Having an expert review your documents before submission can prevent setbacks and solidify a strong relationship with your MSP.

How we can help with your project set up

The project setup phase is a crucial step in securing your funding and ensuring your project runs smoothly. Working with an experienced grants consultant can help you:

• Navigate the process efficiently – Avoid missed deadlines and administrative pitfalls.
• Ensure strong documentation – Our team reviews and refines your financials, collaboration agreements, and exploitation plan before submission, reducing the risk of delays and building the confidence of your MSP in your documentation and process.
• Reduce back-and-forth with Innovate UK – High-quality submissions lead to faster approvals and fewer delays.
• Maximise your funding potential – A smooth start ensures you get the full benefit of your grant.

We also have a network of trusted IP lawyers, accountants and financial advisors, ensuring that legal and financial complexities do not hold up your project.

If you want to ensure a seamless project setup process, get in touch with our team today.

Final thoughts

Winning an innovation grant is a significant opportunity, but how you manage the project setup phase can set the foundations for how smoothly your project runs.

Key takeaways:

• Start early – Legal and financial checks take time, and waiting too long can cause delays.
• Be meticulous with documentation – Strong submissions reduce scrutiny and back-and-forth with Innovate UK.
• Establish a good relationship with your monitoring officer – Confidence in your setup leads to smoother approvals.
• Seek expert support where needed – A well-managed setup phase sets the foundation for successful project delivery.

By approaching this phase strategically, you ensure that your project is set up for success, funding is secured and your innovation has the best possible chance to make a real impact.

Need support with your project setup? Get in touch today.