#9 Leveraging AI for application success
Whats the best way to use AI for funding applications? Should you even use it at all? Let's dive into the do's and don'ts of AI for funding.
A note from Lucy: Apologies for getting this newsletter to you later than usual. Last week was a tough week for me and I had to take a weekend off to refresh myself and deliver the newsletter to the level I want you guys to experience it at. Thank you for your support.
Welcome to Friday Funding Chats, your weekly accountability buddy in your small business funding journey. Every Friday we deliver top fund picks and tips to your inbox, saving you time and making your funding journey an empowering one.
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Whats in this edition:
💸 Fashion & textiles grants
💸 Leveraging AI for applications
💸 Podcasts I’m loving this month
💸 Demo days and networking
This Weeks Top Opportunities
Grant Social Shifters Global Innovation Challenge - grants from $3-15k available, along with networks and support for young entrepreneurs.
Award The Textile Society Professional Development Award - apply for £2k bursaries to support your development as a professional.
Grant It’s Girl Dreamer - is back, offering £2,500 to WOC founders between the ages of 18-35 in the UK.
Accelerator Evo Fashion DEADLINE APPROACHING - 4th August is the deadline to apply for the next Evo Fashion Cohort.
These Top Opportunities were lifted from the Funding Opportunities Database, a unique listing of over 60 grants, awards, accelerators and other funding opportunities for your small business (with a focus on creatives and social & environmental impact). For full access to the database, upgrade for just £4 a month. Plus get Friday Funding Chats Live, and interviews with founders who have funded.
AI For Grant Applications
A question I get asked routinely is ‘can I use AI to apply for grants, awards or funding in general?’
As a regular applicant myself, I have sat in on many a grant advisory session, and the answer to this question in short is ‘yes’.
Let’s be real, funders know that it’s highly unlikely people won’t use AI to complete an application for reasons such as time efficiency, clarity and supporting neurodiverse working needs. It would be crazy of them to disallow it. However, there are common pitfalls that we need to be aware of when using AI.
Here are a few prominent ones and how to avoid them.
Copyright & IP infringements are being prosecuted more regularly via AI misuse. The issue is that AI scrapes the internet for anything and everything, so asking it to generate ideas for you can be a tricky area. If in doubt, do some due diligence to check something isn’t already protected, otherwise, avoid asking it to generate product or business ideas for you.
It may not be truthful. AI is like a cheeky child, given the opportunity it will lie through it’s teeth, so be wary of the results it generates. Whilst it can save you a lot of time to ask it to generate competitor research or case studies, always double check the data it gives you, and that the result is fact not fiction. (I once asked ChatGPT for case studies and it returned 2 fictional and 1 factual. When challenged, it admitted that it had made them up for me.)
Avoid a straight copy & paste. Try to look like you made an effort. Spell check and rewrite anything that doesn’t sound true to your voice. Correct ‘Americanisms’ and remove the emojis.
Other than that, feel free to use it to draft answer structures, research competitors or amalgamate information for you. I often use it to tidy things up and help me sound a bit more professional on those days when words all start to look like gobble-de-gook and your deadline is looming. You could also ask it to research the grant or award and give you some best practise tips or advice on the best angle to take with regards to scoring.
Asking AI to create an entire application for you, without proof reading, due diligence or edits is a recipe for disaster. Get creative, let AI assist you, but don’t let it take the wheel.
Funding News & Resources:
Women are still wildly under represented when it comes to VC funding, a topic I am a bit obsessed with. This excellent article breaks down the reasons why Venture Capital funders favour male founded businesses(or mixed teams). Gifftid
Angel Investors: Who are they and how to win them over. If you are considering raising equity, Founder Catalyst is an amazing support network and tool. Their insight into VC and Angel investment is invaluable!
Virgin Startup Podcast - How to Start a Subscription Business with Freddie’s Flowers. The subscription model can be an amazing way to secure recurring income, learn more from Freddie Garland (no, not a made up name!)
Finnish startup Brightplus has raised €2m to accelerate the development and industrial scaling of its recyclable, bio-based textile coatings. The funding round was led by impact investor Collateral Good, with co-lead investment from Nordic Butterfly Ventures.
Working Hard or Hardly Working: Emma Grede, stop playing small and make shit happen - I really enjoyed this episode (minus the Kardashian association). Emma is very honest about the realities of being an entrepreneur, and her tips on gaining experience and being bankable are so on point.
Question: What is an Impact Investor?
Answer: Impact investing involves making investments with the intention of generating positive, measurable social or environmental impact alongside a financial return. Business can often negotiate better terms in return for agreed impact milestones.
Events
Demo days, networking and co-working for side hustlers.
Social Enterprise Support Sessions - Join me on Wednesday 30th at BIPC Enfield for a their monthly social enterprise and not for profit support session. I’ll be speaking about funding your not for profit, so come along and say hi.
30th July, BIPC Enfield.
Small Business Britain: Make this Christmas your best sales season yet. - if your focus is on sales and cashflow, this webinar will help you plan Xmas promotions, get repeat customers and sell more.
3rd September, Online.
Enterprise Nation: how to improve your relationship with money - if you think personal and business finance are the same, you’d be wrong. We all have different feelings and emotions that we attach to money, and confronting any limiting beliefs you have will enable you to take more risks.
28th July, Online.
Hotbed Demo Day - Meet cohort IV and watch their pitches for demo day. It’s always a good idea to watch as many pitch examples as possible to get an idea of what funders or partners are looking for.
August 1st, Online
Blue Earth Summit: BE100 competition - designed to accelerate innovation in climate health, 1000 businesses are invited to pitch in front of investors in the impact space.
15th October, London
Entrepreneurs First Saturday Club - if you are still working full time and trying to make your side hustle work, this club is for you. A co-working session on a weekend!
26th July, London
Sclr Labs: Founders Fundraising Check in - investor strategy drop in sessions and support for founders raising pre seed and seed round investment.
31st July, London
Power Up your social enterprise - meet the people behind the Startup Support Programme with Trampoline, open to London based social Enterprises.
12th August, London
Introduction to Grantfinder - Idox's Timothy Crampton and BIPC Lewisham staff will guide you through how to set up searches, what you can expect to find and what to do next.
12th August, Online
Question: What is pre seed investment?
Answer: Equity investment takes place in ‘rounds’ depending on the size and scale of the business, the milestones they wish to achieve, their valuation and the funding they need. Your first equity funding round is generally your smallest, and it’s called a pre seed round. However, investors all have different definitions of what stage businesses should be at for pre seed. Some want an idea, others want to see traction.
Before You Go
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🎓 Do you have a small business community who could benefit from our knowledge and support? Reach out today to find out about our workshops, speaking and consultancy services. Speak to Lucy
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