Grants
A comprehensive guide
Last updated
A comprehensive guide
Last updated
During the initial stages of development, you'll likely rely on your own finances. Quitting your job without a clear vision isn't advisable, so it's often better to tinker with ideas in your spare time. This can be challenging alongside a full-time job, but it's a practical way to develop your concept.
Grants can be an worthwhile source of early-stage funding for blockchain startups, providing non-dilutive capital that allows you to kickstart your development without giving away equity or tokens. This guide will walk you through the details of applying for grants, making sure you're well-prepared to take advantage of the opportunities available.
This is also an ideal time to network with other founders and discover who else is building in your chosen ecosystem. Fellow founders often provide invaluable insights you won't find elsewhere. Some may even offer angel investments, but their first-hand knowledge is most valuable: the pitfalls they encountered, the strategies to avoid scams, and the tricks they learned to gain an edge. Remember, it's a two-way street; give and take will build these relationships.
Note that it is not absolutely essential to apply for grants, but they are likely to be helpful.
Grants are funding opportunities typically offered by blockchain foundations, community funds, or other organizations within a specific ecosystem. Unlike venture funding, grants do not require giving up ownership or control in the form of tokens or equity. Grants are usually given to projects that provide value to the blockchain community, whether through innovation, tools, or expanding the ecosystem's user base.
Open vs Request For Proposals: Most (if not all) grants will allow you to propose your own idea for grant funding. This means you can pitch your own product. However, some foundations may publish a Request for Proposals (RFPs). These are specific projects that the foundation wants built and there will be fairly tight control on what is built.
Ecosystem Development Grants: These grants are often provided by blockchain foundations like Ethereum, Solana, or Polygon to boost projects that help grow the ecosystem. This can include building decentralized applications (dApps), creating developer tools, or contributing to infrastructure.
Research Grants: Some grants are awarded for research in specific fields, such as consensus algorithms, cryptography, or scalability solutions. This is especially relevant for projects that aim to solve technical challenges within blockchain.
Community and Education Grants: Some organizations support initiatives focused on educating the community, running workshops, or otherwise contributing to public knowledge about blockchain and crypto.
Blockchain Foundation Websites: Visit the websites of the major blockchain foundations you wish to work within (e.g., Ethereum Foundation, Solana Foundation) to find current grant opportunities.
Grants Aggregators: Platforms like Gitcoin often list various grant opportunities across multiple ecosystems, making it easier to discover what's available. From a quick Google search you can also find websites that aggregate the links of many programs, e.g. a website that .
Community Channels: You might come across niche or newly launching grants programs while participating in community channels found on Discord, Telegram, or Twitter etc. Many blockchain projects offer grant programs, even relatively small ones. All ecosystems want to grow, so a grants program is a fairly natural way to induce growth.
Open Source: most grant programs will require public code with an appropriate open source license.
Limited Funding: The maximum amount of funding will not be enough to launch your product. Typical awards are in the range of $10,000 to $50,000. Many grant programs will be looking to fund projects around the $20k-$30k mark. The maximum for a single project may be limited to say $100k.
Additional constraints: take care to read your desired grant program thoroughly. Make sure you understand all restrictions. This may be about the nature of payments or a strong requirement to provide documentation for your product.
Research Eligibility Requirements
Every grant program has specific requirements and eligibility criteria. Make sure your project aligns with the goals of the grant you're applying for.
Pay attention to deadlines, application formats, and any mandatory deliverables.
Tailor Your Application to the Ecosystem
Align with Ecosystem Goals: Understand the goals of the ecosystem and tailor your application to show how your project will further these goals. Explain the value your project adds, whether it’s infrastructure, a new use case, or developer tools.
Define Milestones: Grants often require projects to define milestones that demonstrate progress. These should be realistic, measurable, and aligned with the overall goals of the grant. Make sure to clearly outline the time require and the amount of funding sought per milestone.
Develop Supporting Materials
Working Prototype: Having a working prototype or even a minimal viable product (MVP) greatly increases your chances of securing a grant. Demonstrating progress shows your capability and commitment.
Whitepaper or Proposal: Draft a document that clearly outlines your vision, how it fits within the ecosystem, and why it's important. This should include technical details as well as potential impacts.
Review Previous Applications: writing a good application will be easier if you review previously accepted grant applications.
Follow Prescribed Format: be sure to note if there is a preferred format for your grant application. Some application processes may simply be a Google Form while others may request that you submit a separate document with a particular format. Strong deviations from the requested format will lead to delays in proposal acceptance.
Problem Statement: Clearly describe the problem your project is addressing and why it’s relevant to the ecosystem.
Proposed Solution: Explain your solution in detail. Highlight what makes it unique and why it's the right approach for the problem at hand.
Milestones and Timeline: Break down your project into phases or milestones. This helps the grant committee understand your plan and track progress. Include realistic timelines for each milestone.
Budget Breakdown: Provide a clear breakdown of how the funds will be used. This shows that you've thought through the practical aspects of executing your project.
Team Background: Highlight the skills and experience of your team members. Include links to past work, GitHub profiles, or LinkedIn to build credibility.
Stick to the Milestones
Many grants release funds in tranches, tied to specific milestones. Stick to your milestones and keep the grant provider informed about progress.
Communication is Key
Maintain open communication with the grant provider. Share updates on your progress, challenges, and upcoming milestones. This can help establish a strong relationship and increase your chances of securing additional funding in the future.
Tracking and Accountability
Keep detailed records of how the funds are used. Many grant programs require reports detailing expenditure and progress, so maintaining accurate records will make compliance much easier. This will be on top of any requirement to provide documentation for your product.
Over-reliance on Grants: Grants are a great way to get started, but relying too heavily on them can hinder your ability to scale. Always have a plan for raising additional funds, whether through private investment, token sales, or other mechanisms. Don't aim to be a work-for-hire team, but aim aim to build and launch one great product.
Vague Milestones: Ensure your milestones are clear and realistic. Vague or overly ambitious milestones make it difficult for grant providers to evaluate progress, reducing the likelihood of continued funding.
Underestimating Competition: Remember that grant applications are competitive. Take the time to research other projects applying for the same grants and understand how your application can stand out.
Apply Early: Some grant programs often have fixed deadlines, and applying early gives you time to refine your application and address feedback from the grant committee. Note that many grants programs offer rolling acceptance, so double check with each program.
Network within the Community: Building relationships within the blockchain community can help strengthen your application. Having support from prominent community members can sometimes make a difference in how your application is perceived.
Leverage Grant Opportunities to Build Runway: Grants can help extend your startup’s runway and build momentum. However, resist the temptation to rely exclusively on grant money, as this can lead to complacency. It’s important to keep the pressure on and stay focused on building a sustainable business.
Grants can be a powerful tool for getting your blockchain startup off the ground, but they require careful preparation and a clear alignment with the goals of the funding body. By crafting a strong proposal, sticking to well-defined milestones, and building strong relationships within the community, you can maximize your chances of securing valuable grant funding for your project.
Ethereum Foundation Grants: Focused on supporting projects that benefit the Ethereum ecosystem, including infrastructure, developer tools, and public goods. ()
Solana Foundation Grants: Typically awarded to projects that enhance Solana’s scalability, tooling, or applications. ()
Polygon Community Grants: A community grants program that supports builders and teams within the Polygon ecosystem. ()
Near Ecosystem Grants: There are a few different sources of funding within the Near ecosystem. Take a look at their ecosystem grants page to find something appropriate. ()
Web 3 Foundation: Funds software development and research efforts related to Polkadot and Kusama. ()
Gitcoin Grants: A crowdfunding platform that matches contributions to projects contributing to the public good in the blockchain space. It isn't necessarily recommended that you should apply for a grant from the Gitcoin community, but rather the platform hosts grant opportunities from a number of different providers. ()