Top UK Grants to Support App Development for Startups and SMEs

Developing a new app—from innovative consumer platforms to industry-changing B2B solutions—can be expensive, especially for startups and small to medium-sized businesses (SMEs). With fierce competition and limited cash flow, accessing financial support can make a critical difference between a project stalling or moving ahead to realisation.

Fortunately, the UK government and several organisations offer grants specifically aimed at supporting technology innovation, including app development. In this post, we explore the main grant options available to UK startups and SMEs, outline eligibility requirements, and provide guidance on how to get started securing support for your next app project.

Why Grants Matter for App Development

Grants are non-repayable funds awarded to businesses for specific projects or innovation activities. Unlike loans or equity investment, you do not have to pay grants back or give away ownership. For startups and SMEs, grants can:

• Reduce the financial risks associated with developing new technologies.
• Help hit key milestones (such as prototype or MVP creation) needed to attract further funding.
• Support recruitment of specialist talent, purchase of tools, validation and user testing.
• Increase commercialisation success through mentorship, market access, or publicity linked to grant schemes.

Key UK Grants for App Development

The grant landscape in the UK is dynamic, with new opportunities launched throughout the year and some funding pots time-limited. Below are some of the most significant and recurring grant schemes worth considering if you’re seeking to develop a new app.

1. Innovate UK Smart Grants

Innovate UK is a core public funder of business-led innovation, including digital and software development. Their “Smart Grants” are open to startups and SMEs developing innovative, game-changing products or services with strong commercial potential, often covering technology like web and mobile apps.

• Funding amount: Up to £500,000 for single SME-led projects. Larger collaborations can access higher sums.
• Eligibility: UK-based businesses. Applicants must demonstrate novelty, a clear route to market, and impact potential.
• Supporting activities: Feasibility studies, prototyping, market validation, business model development, and other technology readiness stages.
• How to apply: Quarterly competition rounds. Applications assessed on innovation, market need, impact, and team quality.

Visit Innovate UK for current calls and detailed guidance.

2. Innovate UK Fast Start: Innovation Grants

This more recent Innovate UK initiative specifically supports early-stage micro and small businesses working on highly innovative projects with potential for rapid commercialisation. App development is frequently included among eligible projects.

• Funding amount: £25,000 to £50,000 per project.
• Eligibility: UK-based micro and small companies (0-49 employees). Project must start within one month of approval and complete in six months.
• Suitable for: Quick proof-of-concept, MVP stages, market validation, initial prototype development.

Full details and current deadlines available here.

3. Local Enterprise Partnerships (LEPs) and Growth Hubs

Local Enterprise Partnerships (LEPs) are business-led public-private partnerships in England that provide various support for local businesses. Most LEPs run competitive grant schemes from time to time, including digital innovation funds or technology accelerators with a remit that covers app development.

• Funding amount: Varies by region and call (typically £5,000–£50,000 for SMEs); some offer larger strategic funds.
• Eligibility: Businesses based in the LEP’s area, with a focus aligned to local priorities (digital skills, advanced manufacturing, sustainability, etc.).
• How to apply: Check your local Growth Hub or LEP website for active callouts, criteria, and deadlines.

Find your regional support via the LEP Network Map.

4. Scottish Enterprise Grants

If you are based in Scotland, Scottish Enterprise provides significant grant funding for innovation, including the development of digital apps or services, through several programmes:

• Research & Development Grant: Supports feasibility studies and commercialisation for innovative projects.
• Funding amount: Typically covers up to 50% of eligible project costs. Amounts vary widely depending on scope.
• Eligibility: Scottish-based businesses of any size, but preference for high-growth potential startups and SMEs.
• Other schemes: The Highlands and Islands Enterprise also provides funding to businesses in their region.

See Scottish Enterprise for current opportunities.

5. Wales Innovation Support

Business Wales and the Welsh Government deliver innovation funding, sometimes in partnership with Innovate UK or from devolved sources. Grants often support digital technology or software solutions with economic development impact.

• Funding amount: Varies (some regional funds up to £50,000+).
• Eligibility: Wales-based startups and SMEs. Applicants must typically create local jobs or value.
• Opportunities: Check for digital development funds, SMART Wales R&D grants, and region-specific awards.

Find current opportunities at Business Wales.

6. Northern Ireland Innovation Vouchers & Invest NI Support

For Northern Ireland-based businesses, Invest NI runs several funding schemes for innovation, including app development:

• Innovation Vouchers: Up to £5,000 to access expertise from local universities or institutes for technology projects, such as app prototyping.
• Other grants: Digital boost, technical proof of concept, and R&D funding.
• Eligibility: SMEs, microbusinesses, and social enterprises operating in Northern Ireland.

Check Invest NI’s Support for Business for full details.

7. European Regional Development Fund (ERDF) and University-Led Accelerators

While the UK’s Brexit withdrawal has ended most direct access to EU grants, legacy funding remains available via ERDF-backed university programmes and accelerators across England, Scotland, and Wales. Many offer:

• Small grants for feasibility studies, app prototyping, or market research.
• Access to technical expertise, labs, coworking, and mentoring.
• No repayment or equity required.

For example, several UK universities run digital innovation hubs, Proof of Concept funds, and sector-specific challenges open to local SMEs or recent graduates.

8. Other Innovation Competitions & Challenges

Innovation challenges by public bodies (e.g., NHS, Transport for London, DEFRA) or major corporates can provide both grant funding and wider support for digital solution development. These are especially valuable if your app addresses public sector or societal challenges.

• Prizes can range from £5,000 to over £100,000 for digital health, transport, or environmental solutions.
• Winners often gain access to mentorship, pilots, or procurement opportunities.
• Keep an eye on Innovate UK EDGE and websites of relevant government agencies for announcements.

Essential Tips for Applying for Grants

Securing grant funding for app development is highly competitive. To maximise your chances:

• Understand the criteria. Tailor your proposal specifically to the fund’s priorities—innovation, economic impact, sector focus, or regional benefit.
• Demonstrate clear need and novelty. Make sure you clearly explain how your app addresses a real problem—show evidence of user research, gaps in existing solutions, and commercial opportunity.
• Outline deliverables and plan. Set realistic objectives, timelines, and budget. Funders want to see you have the team, technical knowledge, and business skills to deliver.
• Leverage partnerships. For collaborative grants, involve universities, research bodies, suppliers, or customers early on to strengthen your bid.
• Seek support from local advisors. Many local Growth Hubs, LEPs, or innovation centres offer workshops and hands-on bid writing help.

Alternatives: Tax Reliefs and Soft Loans

Alongside grants, app developers should consider related support such as:

• R&D Tax Credits: Companies developing new software can reclaim costs as a tax reduction or cash rebate. This can equate to up to 33% of eligible spend—not just for commercialised projects.
• Innovation Loans: Innovate UK also offers low-interest loans for later-stage innovation, if grant options are exhausted or inappropriate.
• Venture capital and angel investment: Many UK-focused investors back early-stage app companies, especially if you have a validated prototype or unique market proposition.

Conclusion

From national Innovate UK grants to local and sector initiatives, there are numerous funding sources in the UK designed to spur the development of new apps and digital products by startups and SMEs. Successful applicants frequently combine several streams—such as grants, tax reliefs, and private investment—to build strong financial foundations for growth.

Carefully assess which grant route aligns best with your business goals, region, and app concept. Remember that competition is intense, so dedicate time and effort to crafting a well-researched, target-driven application.

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