Raising capital for good: what options are available to founders? 

Written By Annie Legge

Across the South West, founders are building ventures tackling a diverse social and environmental issues. While the causes vary, many founders only know one model of funding: equity investment.

On 22nd April, Tech4Good South West’s Dhevesh Mewawalla hosted a conversation with three guest speakers – Miriam Turner (Brightwild Ventures), Jem Stein (Daring Capital), Hannad Hussein (Walmart Group) – to explore the wider funding landscape, including grants, debt and alternative investment.

“We had 33 attendees,” Dhevesh commented, “and many of those were at a very early stage in their founder journey, so interest was high.”

The funding gap

All three guest speakers became involved in investing because of the gaps they saw in funding models:

“After running a social enterprise for 10 years, I saw how poorly the current investment system serves impactful founders’” explained Jem Stein of Daring Capital.

“I’ve spent my career in sustainability, innovation, and environmental campaigning. I repeatedly saw founders struggle to access affordable, flexible debt, especially those working on inclusive decarbonisation. There’s a huge gap between tiny grants and large-scale VC,” explained Miriam Turner of Brightwild Ventures.

“The funding landscape is fragmented — R&D tax, grants, loans, equity — and founders don’t know where to start.” Explained Hannad Hussain of the Walmer Group.

Is VC funding really for you? (Often, the answer is no.)

One of the clearest messages from the panel was that founders often pursue capital that was never right for them, and well-intentioned advisors don't always have a broader lens. Jem Stein was clear: venture capital is designed for a tiny subset of businesses – fast-growth, high-return, tech‑driven ventures. Before approaching any investor or lender, get a clear answer on whether your business is right for the VC model.

If it isn't, that's not a criticism - it just means you need to look for a different capital strategy. And even if your business is eligible for equity, it's worth asking whether that's the route you actually want – it comes with pressure, pace, and loss of control. And if this is a path you do want to follow, prove as much as you can before raising equity, because this will improve your terms and reduce your risk.

The missing middle: flexible, affordable debt

A consistent theme the lack of flexible, affordable capital options for early-stage ventures, especially debt. “Underwriting small loans is expensive, so lenders avoid them,” explained Miriam. Banks can't underwrite the risk. VCs are often disincentivised by debt because it reduces their equity upside. And what passes for social investment debt has historically been expensive, bureaucratic, and built for stable cash flows, not innovative early-stage businesses.

Tech-enabled underwriting could be the real unlock here, reducing due diligence costs enough to make small loans viable alongside a mindset shift away from demanding false precision from early-stage ventures. For growth-stage founders who want capital without dilution, Revenue Participation Agreements (where repayment is tied to a percentage of sales) are also an underused option, with funders like Growth Impact Fund, Fredericks Foundation, and Sumerian operating in this space.

What funders want

It may not come as a surprise, but at the early-stage the founder (or founders) consistently mattered more than ‘the deck’. Funders look for a genuine insight into the problem, a track record of making things happen. As Jem articulated: “Do they leave a founder-shaped hole in everything they do?”

On grants, the landscape is shifting: Innovate UK has restructured, and applications that combine genuine innovation with a credible commercialisation plan are stronger than those that focus on one or the other. Team composition and consortium partnerships significantly improve success rates. And across all types of capital, a well-thought-out financial model and defined commercialisation path makes every conversation easier.

Grants, tax relief and non-dilutive funding are underused

Funding consultant Hannad Hussein sees founders overwhelmed by a fragmented landscape; his organisation, the Walmer Group helps organisation explore the range of innovation funding options available: R&D tax credits, Innovate UK grants, regional funds, loans, and equity and build tools to match founders with grants automatically.

Key takeaways

The panel’s collective advice:

  • Start with clarity – what do you need money for, and what model fits that?

  • Don’t default to VC – it’s right for very few.

  • Explore grants early – they’re underused but can be hard to find and many founders miss out so it’s good to understand your options (see resources list below).

  • Consider flexible debt – especially as new models emerge. Remember loans can be risky if taken too early.

  • If you’re raising equity, prove as much as you can beforehand – it improves your options.

  • Protect your mission – choose capital that strengthens, not compromises, your impact.

  • Start with a clear financial plan: what do you need money for? Which model fits that purpose?

Further resources:

Contact our panellists:

  • Miriam Turner, Brightwild Ventures - If you're building in inclusive decarbonisation and need flexible, affordable debt (£50k–£500k): miriam@brightwild.ventures

  • Jem Stein, Daring Capital - UK-based early-stage founder (pre-revenue to ~£300k ARR) in underserved communities and social equality: daringcapital.com or DM Jem on LinkedIn if your idea ties in with the thesis

  • Hannad Hussein, Walmer Group - any questions on navigating innovation finance: R&D tax relief, grants, lending or investment readiness: hhussein@walmergroup.com

Annie Legge
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