Digital Growth Grant
ApplicationPreliminary guidance onand howtimelines for organisations looking to apply for the Digital Growth Grant.
Introduction
Early in 2022, the value of the UK’s tech sector passed $1 trillion. The UK is only the third country in the world to have a tech sector reach this valuation. The UK has created more unicorns than any other country in Europe. The government is committed to making the UK the best place to found and grow a tech business and securing the UK’s status as a global science and technology superpower.
The Department for Digital, Culture, Media &and Sport (DCMS) iswill runningrun thea Digital Growth Grant competition andover invitingSummer bids2022. Bids will be invited to address identified market failures and accelerate the growth of tech start-up and scale-up ecosystems across the regions and nations of the UK. The successful bidder will be awarded up to £12.09 million to be spent over two financial years 2023/24 and 2024/25.
PleaseFurther see below for further detail on the grant objectives, eligibility and application process.process will be published in Summer 2022 when the competition opens for applications.
The detailed grant specification is currently being developed in consultation with the market. DCMS is inviting organisations to participate in upcoming webinars as an opportunity to ask questions and to express their views and ideas about the scope of future provision of government-funded support for tech start-ups and scale-ups.
If you would like to find out more about this grant and how to engage with the Department as a potential bidder, registerplease for one of our upcoming Q&A sessions or get in touch with us at dcmsdigitalgrowthgrant@dcms.gov.uk.
Objectives
The objectives of the Digital Growth Grant will be based around:
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Deliver
Deliveringsupport services to the digital sector, particularly in transformative/emerging technologies. These services should address key challenges faced by a wide range of tech companies from the seed funding stage to series A/B, their first or second round of financing. -
Grow
Developingthegrowthofstartupsscaleups.Activities should deliver concrete improvements inagainstthree oforthemoreareas that were identified in DCMS’DCMSRegional Ecosystems reportReport:asInvestment,crucialSkills,toInnovation,theInfrastructuresuccess of the digital economy. These are: investment, innovation and businessBusinessgrowth.Growth/GVA.SupportInterventionsshould be tailored to local needs and tech specialisms, and should be developed in partnership with local bodies and existing tech groups.bodies. -
Ensure
Ensuringfounders and firms can access digital entrepreneurship and investment readiness training, with tailored advice to help develop their skills to start and grow a tech business. -
start-upsand scaleupsscale-upsto existingthedigitalskills(DCMS’localdigitalskillspartnerships)andshareinformationontypesofrolesavailableintechcompanies,theskillsrequiredtoaccesstheseroles,anddirectiontolow/nocostskillsprovisiontoacquirethoseskills. Promotingandraisingawarenessofthestrengthandcompetitivenessofthetechsectorthatwithcanthehelpaimthemofaccessboostingfinance,investortalentconfidenceand markets.inspiringthenextgenerationoftechworkersandentrepreneurs.
All eligible UK-based organisations will be able to apply. We will also welcome applications from eligible consortia.
Timelines
Timelines are indicative only and subject to change.
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June 2022: Applications open.
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August 2022: Applications close.
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September 2022: Successful bidder notified.
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April 2023: Successful bidder to begin activities.
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April 2025: Funding end date.
WhoGuidance canfor applypotential bidders
This competitionsection isresponds opento frequently asked questions. Applicants should review updates to applicantsthis section regularly to take account of additional information provided. If you have questions about the Digital Growth Grant which are not answered in this section, please contact us using the details below.
1. Scope of the grant
The successful bidder would need to deliver on all of the objectives listed above. As such, it does not comprise individual grants for individual tech companies. The successful bidder will act as a provider of support services to tech startups and consortiascaleups within the UK economy as a whole.
The grant can be used both to amplify existing activity and to create new programmes. For example, if a bidder already delivers existing accelerator, incubator or growth programmes for startups and scaleups, this grant can support those activities as long as they meet the objectives.
The activities to be delivered under this grant should cover the whole of the UK in order to meet the objective of stimulating UK-wide regional growth of tech ecosystems.
To prevent duplication with other digital skills support schemes and funding availableavailable, the intention is that this grant would provide signposting towards existing skills programmes and initiatives rather than designing new, competing skills packages.
We welcome bidders proposing strong argumentation for activityparticular takingsectors placeor sub-sectors (such as agritech, quantum, cyber, etc.) that they feel warrant support as part of their proposal. It should be noted however that the specification will not be prescriptive about sectors.
2. Eligibility and consortia applications
UK-based organisations registered entities that can meet the criteria that will be set out in the UK.grant specification are eligible to apply for this funding.
ApplicantsPublic maysector takeorganisations are not eligible to receive this grant funding (for the formpurposes of solethis legalgrant, entitieswe do not consider universities or mayhigher wisheducation institutions to combinebe public sector).
This grant funding is designed to formfurther consortia,stimulate jointthe venturesdevelopment (JVs),of unincorporateda associationscommercial market for tech startup and scaleup support services. We expect reliance on this grant would reduce over time as we would expect bidders to demonstrate how commercially sustainable they are or partnerships.will Consortiabecome as part of their application.
As for any government grant, we will conduct due diligence on shortlisted bidders before agreeing to release funding. The successful party will be required to cooperate with mandatory checks which would include but not be limited to the provision of data usually contained in financial accounts.
The grant will be awarded to a single organisation but we welcome applications from consortia. Consortia would need to specify who their lead applicant.applicant is and how they would divide the delivery of the grant objectives. The lead partner will be the prime recipient of grant funding. They will be responsible for managing the consortium’s delivery and for allocation of grant funding to other consortium members through a collaboration agreement or equivalent.
Individual organisations are not permitted to apply as part of more than one consortium.consortia.
Applicant(s)The mustprocess alsofor this grant competition will be registereda corporateone-stage entitiesprocess and havewill afollow significantthe UKCabinet presenceOffice’s andguidance deepfor knowledgegeneral ofgrants. theWe UKare techworking sector.
Publicto sectorensure organisations arehave notas eligiblemuch opportunity as possible to receiveapply for this funding. Applications will be assessed by a panel of assessors who will independently judge each bid against known criteria to determine the grant recipient. These criteria will be set out in the specification.
IndividualThere peopleis areno notrequirement eligibleto applicants.
Howhave match funding in order to apply
Stepsubmit 1:a Readbid thebut invitationif a bidder did put forward a proposal to applicationmatch documentfund, below:it would be taken into consideration through the bid assessment.
3. Expenditure
StepThe 2:grant Readagreement will require the grantpreparation fundingof a delivery plan, prepared by the delivery partner and agreed with DCMS. The delivery plan includes: a forecasted budget; detail on the proposed programmes; a risk assessment; and benefits coming from the grant. The grant agreement below:letter will set out the terms and conditions of the grant, including monitoring/evaluation and eligible expenditure. DCMS will meet monthly and quarterly with the delivery partner to monitor their progress.
StepWe 3:understand Completethat TUPE liabilities may be material to bidders’ decision making process. Any information about the application formof below:TUPE and associated anonymised data will be made available when the specification goes live in June to help bidders make an assessment.
Last updated 27
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Page update to reflect competition is now open.
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Added 'Guidance for potential bidders' section.
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First published.
Update history
2023-01-23 16:24
Withdrawn guidance and updated page to reflect that the grant competition has now closed.
2022-08-10 17:51
Added document – Digital Growth Grant Competition: Clarification and further information.
2022-07-29 10:51
Updated invitation to application document.
2022-07-20 11:14
Updated invitation to application document.
2022-07-15 11:43
Updated finance form to amend an error in cell calculations.
2022-07-14 17:09
Added guidance section.
2022-06-27 11:45
Page update to reflect competition is now open.
2022-05-25 11:27
Added ‘Guidance for potential bidders’ section.
2022-04-11 11:45
First published.