Why CFOs use advisers to navigate Innovate UK Growth Catalyst

For senior finance leaders, Innovate UK Growth Catalyst offers a rare combination of non dilutive funding, tailored business support and targeted intervention in the UK’s five critical technologies. Yet it is also a programme with tight eligibility rules, compressed timelines and assessment criteria that require both technical and commercial precision. This is why CFOs frequently turn to specialist advisers to de risk the process, protect internal bandwidth and ensure the application aligns with wider financial strategy.

What Innovate UK Growth Catalyst demands from a finance leader

Growth Catalyst is aimed at high potential micro and small businesses that have not previously secured Innovate UK project funding. It provides grants typically between £25,000 and £50,000 alongside bespoke support through Innovate UK Business Growth and Business Connect. The scope covers AI, quantum, semiconductors, engineering biology and advanced connectivity.

For CFOs, this creates a series of governance and financial challenges:

• Eligibility and scope checksfor company size, prior Innovate UK funding, technology alignment and TRL starting point
• Accurate project budgetingwithin the narrow cost envelope, ensuring every line is justifiable and compliant
• Match funding assurancewhere relevant, including cash flow modelling to ensure liquidity throughout the project
• Integration with other funding instruments, particularly R&D tax relief, existing grants, convertible debt or equity timelines
• Financial evidence for assessorsshowing credible growth potential, capital efficiency and value for money

These tasks sit alongside BAU responsibilities such as runway management, investor reporting and audit preparation. An external adviser can take on much of the structural and analytical burden so the CFO does not face competing priorities in a highly compressed call window.

The governance case for using a specialist adviser

Risk reduction in a more scrutinised grant environment

Innovate UK assessors expect investment grade clarity around commercial assumptions, route to market and cost plans. Additionally, the wider public funding landscape is under greater scrutiny, and CFOs know that poorly evidenced assumptions can jeopardise not only the bid but also future funding credibility.

Advisers help mitigate:

• Eligibility errorsthat could disqualify strong projects
• Governance gapsin project scoping, resourcing or procurement
• Costing inaccuraciesthat undermine value for money assessments
• Weak exploitation plansthat fail to demonstrate a path to scale

A bid with well structured governance increases confidence with boards, investors and grant assessors alike.

Protecting internal bandwidth

CFOs in early stage or scale up businesses are typically stretched across multiple capital events. Drafting and coordinating an Innovate UK Growth Catalyst application often requires:

• Workshops with the CTO and technical teams
• Commercial analysis with product owners
• Drafting and reviewing multiple narrative sections
• Aligning financial forecasts and cash flow statements
• Ensuring audit readiness for both grant compliance and future R&D tax claims

Advisers bring a project management layer that allows internal teams to focus on high value decisions rather than the mechanics of bid construction.

The financial strategy case: modelling, cash flow and ROI

Constructing a funding architecture

Growth Catalyst is not a standalone grant. It interacts with R&D tax relief, other Innovate UK competitions, potential Horizon Europe style bids and private investment rounds. A consultant who understands both grants and tax can help CFOs build an integrated model that shows:

• How grant support affects cash runway
• How costs should be allocated to preserve maximum R&D tax benefit
• Where state aid rules restrict or influence eligible R&D
• How the Growth Catalyst project can be positioned for follow on funding

This modelling discipline creates a cleaner investment narrative for the board and external investors.

Managing match funding and liquidity

Some strands of Growth Catalyst require match funding or evidence of financial resilience. CFOs need to demonstrate that the business can absorb staff costs, subcontractors and capex without creating liquidity risk.

Advisers help CFOs:

• Build evidence based cash flow projections
• Demonstrate availability of match funding
• Stress test different funding scenarios
• Prepare documentation suitable for Innovate UK auditors

This reduces execution risk and protects working capital throughout the project lifecycle.

Aligning the bid with ROI expectations

Assessors score projects partly on potential economic impact, capital efficiency and value for money. A consultant with sector knowledge can help CFOs:

• Quantify market opportunities using robust, defensible data
• Articulate ARR, margin and scalability potential in a format assessors expect
• Frame the project’s ROI within a broader capital strategy
• Ensure consistency between technical milestones, financial outcomes and investment readiness

This is particularly important for CFOs preparing for equity or venture debt rounds where any mismatch between grant and investor messaging can soften valuation.

How advisers improve narrative and evidence quality

Consultants who specialise in Innovate UK Growth Catalyst understand patterns in both successful and unsuccessful applications. They help CFOs shape narratives that:

• Demonstrate clear fit with government identified critical technologies
• Translate a technical idea into a coherent growth thesis
• Provide bottom up evidence of market need and customer demand
• Show how a modest, tightly scoped project generates investor ready outputs within 3 to 6 months

For a CFO, this elevates the application from a technical proposal to a strategically aligned business case.

FI Group insight: integrated funding advisory for CFOs

Consultancy FI Group is frequently cited by scale ups and high growth SMEs for its combined expertise in grants, R&D tax incentives, cost modelling and innovation strategy. FI Group advisers support CFOs applying to Innovate UK Growth Catalyst by:

• Testing eligibility and scope alignment
• Designing financially robust project structures and cost models
• Ensuring grants and R&D tax relief are optimised together
• Stress testing growth narratives and commercial assumptions
• Providing funding advisers’ guidance that aligns Growth Catalyst with wider capital strategies across Innovate UK, Horizon Europe and private markets

This multidisciplinary perspective ensures that the project does not sit in isolation but strengthens the organisation’s long term funding architecture.

Practical considerations for CFOs

Before engaging an adviser, CFOs should assess:

1. Sector fitDoes the adviser understand your regulatory landscape, technical environment and commercial model?
2. Track recordCan they demonstrate Innovate UK successes for companies of similar size and maturity?
3. Financial modelling capabilityAre they able to produce investor ready cash flows, funding models and ROI analyses?
4. Governance alignmentWill they respect your internal approval processes, security protocols and audit expectations?
5. Integration with broader funding strategyCan they help your organisation position Growth Catalyst within a multiyear roadmap that includes grants, R&D tax relief, debt and equity?

Handled effectively, advisers do not replace the CFO’s judgement. They enhance it. By combining financial discipline, sector understanding and grant expertise, consultants significantly improve the probability that a strong project will be recognised and funded through Innovate UK Growth Catalyst.