Innovation funding specialists ABGI-UK  judged Super Connect for Good's Scotland and Wales regional applications again this year.

This UK-wide competition seeks to discover and connect the best-emerging start-ups and scale-ups that are using technology to deliver positive social impact and enhance people’s lives. One thing that pleasantly surprised ABGI-UK during the judging process, was the sheer diversity of businesses using innovation to generate a positive social impact, as well as the variety of those impacts.

It found that ‘Tech for social good’ companies were worth £2.3 billion in 2018, with a turnover of £732 million – larger than the amount generated by the manufacture of consumer electronics in the UK (£634 million).

Technological innovation doesn't just bring economic benefits to our society. There are many opportunities to use the power of technology to help us overcome a number of our major social challenges.

According to the Tech Nation ‘Tech for Social Good' report, the UK is a global centre for socially responsible technology innovation. ‘Tech for social good’ companies were worth £2.3 billion in 2018, with a turnover of £732 million – larger than the amount generated by the manufacture of consumer electronics in the UK (£634 million).

Recognising the transformational effects that investing in innovation can have for businesses, ABGI were especially proud to be part of Super Connect for Good.

Profit With Purpose Technology

Winners of the 2021 Super Connect for Good EdTech award, Klik2Learn, is an example. This Glasgow-based business aims to transform lives by providing easier access to basic English skills for disadvantaged individuals and communities through the Klik2Learn learning hub and app.

As Ann Attridge, CEO of Klik2Learn is keen to point out: “In many developing nations there is a social stigma attached to a lack of basic literacy, while a lack of basic English skills can be the difference between being a “have” and a “have not.”  Studies have shown that in India a grasp of basic English can increase the earning potential of the average child by 34% over his/her life.”

Klik2Learn’s vision of creating a wide range of learning opportunities, to meet the needs and learning styles of each individual could have a significant impact on the social mobility of children, from a wide range of social backgrounds and circumstances, and deliver life-changing opportunities.

Bridging the Innovation Funding Gap

“The Valley of Death” is the metaphor often used to describe the difficulty for early-stage high-growth businesses of translating research into commercial application, particularly due to lack of funding. As a result, there is considerable drop off in company numbers at venture, growth and established stage.

Small businesses with big visions such Klik2Learn are faced with such challenges as:

• Proving that both technology and the core business model are viable;
• Securing the funding necessary to take the business through proof of concept, to technology development and all the way to market launch;
• With the added challenge of having to overcome the misconceptions that companies with a more purpose-driven mission are less investable.

The broader fiscal context is therefore extremely important, especially for smaller companies, to provide businesses the confidence to fund research and development projects to continue growth.

The good news is that there is help out there to get businesses through the challenges of developing the technology and getting the business up and running. From early-stage grants to commercial funding (such as loans, asset finance or equity investment), through to R&D tax relief and finally Patent Box for companies developing formal IP, there are many ways to meet the financial risk posed to innovative SMEs.

Funding Options Available 

There are a number of funding options available for businesses choosing to harness technology for good from R&D tax relief to grant funding.

R&D tax relief can help to accelerate businesses to that next level by ensuring that the company receives a tax deduction or payable cash credit from HMRC for any costs incurred from product, service or software development provided that this qualifies according to HMRC. HMRC typically define R&D as overcoming technological uncertainties or achieving an advance in technology. Submitting these claims with the help of R&D tax credit partners can result in a significant cash injection for a business and eliminate the risk of an HMRC investigation.

Another viable way in which businesses can receive additional cash for their research and development projects such as the development of new technology is through grant funding. Grants are awarded to help businesses grow and develop and can be invested in innovative new products or services. Key to the success of grant applications is accurately assessing eligibility, completing applications without errors and providing the necessary documentation. Seeking the advice of end-to-end consultancy services is usually the best course of action to minimise any risk associated with grant applications.