Top 5 Tips How to Fund Your Project

November 15, 2019

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by CJ Evans (American Diversified Energy Consulting Services and Alternative Fuels & Chemicals Coalition) ... There is more than $54 billion available in funding and loan authority from the federal government. This funding supports each of the nine Technology Readiness Levels (TRLs) from initial concept through first commercialization (see http://www.americandiversified.energy/directory for a description of the Technology Readiness Levels and the federal funding opportunities available for each TRL).

Multiple sources of private sector lending, investment, and equity also are available. Many of these can be matched up with federal grant and loan guarantee programs. These programs are attractive to lenders and investors since they reduce the risks associated with new technologies and products.

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Tip #1: CONSIDER THE CHALLENGES IN SECURING FEDERAL FUNDING

In doing so, you face three challenges:

First, you must find the program or programs that will support the development of your technology or product – out of the more than 10,000 grants, loans, loan guarantees, research and development and incubator programs, and tax incentives available from federal agencies and the more than 1,000 available from the 50 states.
Second, you must meet the requirements that are necessary to apply for and receive funding.Of the remaining 28 percent of applications, only those with the strongest projects that meet all of the program’s funding criteria and score highest are selected for funding.
Third, you must avoid the mistakes that disqualify as many as 72 percent of the applications that are submitted. Close to 20 percent of applications are prescreened out and never read due to seemingly small details that have been overlooked or not followed. Another 52 percent are disqualified due to other flaws in the application (see the list of 40 mistakes that kill a majority of applications and proposals at http://www.americandiversified.energy/40-mistakes).

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Tip #2: HOW TO MAKE THE BEST IMPRESSION

Like the applications that you prepare for federal funding opportunities, the materials that make up a successful financial presentation must:

Zoom in on the presentation’s fundamental goals – meeting requirements and getting the reader to make a positive decision to invest, award a grant, or lend money. Thus, the materials should:

be designed to influence readers’ and reviewers’ memories;
be built around an awareness of how information gets into memory;
be based, not on pie-in-the-sky assertions and flowery statements, but on solid data that can be provided as a reference or attachment and, preferably, is backed up with independent feasibility studies and technical assessments; and
include a specific call to action.

For these reasons, it is important that:

The materials adequately address your objectives and needs;
The materials have a consistent format and theme throughout that tie them together, that complement your information and data, and distinguish your presentation materials from the crowd of look-alike, run-of-the-mill presentations whose messages can blur together;
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Tip # 3: THE SYNERGIES BETWEEN FEDERAL FUNDING PROGRAMS AND PRIVATE SECTOR FUNDING

The first synergy that exists between applying for a federal funding program and securing private sector funding is how one source of funding is able to complement and leverage the other.

The second synergy is in the materials that need to be prepared. Both sources of funding require many of the same materials.

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Tip # 4: THE “LEGO SET” APPROACH TO PREPARING APPLICATIONS AND FINANCIAL PRESENTATIONS

There are 16 elements that make up a complete financial presentation. Many of these are the same elements that are required – or are highly useful – for preparing successful applications for federal funding programs.

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Tip # 5: HOW TO MOVE FORWARD

There are multiple consulting firms that can assist you in applying for federal funding and preparing the necessary financial presentation materials for private sector lenders and investors. READ MORE