Key Takeaways:

  • Government funding options such as SBIR grants and various federal department grants are a primary source of non-repayable funding for inventors.
  • Non-profits and universities offer grants for inventions with social impact or commercial potential.
  • Angel investors and venture capitalists can provide significant funding but often require equity in return.
  • Crowdfunding platforms like Kickstarter and Indiegogo allow inventors to raise funds directly from the public.
  • Licensing agreements can generate funding by allowing companies to produce and sell an invention in exchange for royalties.
  • Business loans and lines of credit are available for inventors with solid business plans and good credit.
  • Patent assistance programs and contests can offer funding, resources, or exposure to secure investors.

Grants for patents are funds issued to people who need money to fully develop their creations and apply for a patent. Since many startup investors lack adequate funds to cover grant applications and fully develop their ideas, grant money enables them to invest in their business and obtain a patent more quickly than they might otherwise.

How to Get a Patent Grant

Government organizations and private entities are two places to look for grants, with the federal government being the best grant source. Private organizations tend to provide funds when they feel an invention could positively benefit society. As you begin researching potential grant sources, check both private and public ones.

Crowdfunding Platforms 

Crowdfunding has emerged as a powerful tool for inventors seeking funding to develop their inventions and secure patents. Platforms such as Kickstarter, Indiegogo, and GoFundMe enable inventors to present their ideas directly to the public and raise capital from interested supporters.

  • Kickstarter: Focused on creative projects, Kickstarter requires you to set a funding goal. If the goal is not met, no funds are disbursed.
  • Indiegogo: Offers both fixed funding (similar to Kickstarter) and flexible funding, which allows you to keep funds raised even if you don’t meet your goal.
  • GoFundMe: Generally used for personal causes, but can also fund inventions, without requiring you to meet a specific goal.

To succeed with crowdfunding:

  • Craft a compelling story around your invention.
  • Provide visual aids such as prototypes, sketches, or demonstration videos.
  • Offer rewards or incentives to backers, such as early access to your product.
  • Promote your campaign through social media, email marketing, and personal networks.

Crowdfunding not only raises funds but also validates market interest and builds an initial customer base.

Federal Funding

The U.S. government supports research and development efforts when it feels an inventor contributes to initiatives that align with its own objectives. Funds are available in amounts as high as several million dollars; inventors don't have to repay grants. Visit Grants.gov to efficiently navigate the various granting offices of federal departments. Take your time looking through the different departments and the grant opportunities they offer. Grants.gov provides comprehensive information about government grants.

Another option is the Small Business Innovation Research (SBIR) website, which works with federal agencies to offer funding for inventions that have commercial potential. SBIR offers funding for the following: 

  • Development
  • Startup
  • Commercialization

Check the sites of individual government agencies, as each may offer specific types of grants related to certain industries. For example, if you have a ranch-related invention, check out the Department of Agriculture site.

Submit a financial request to the SBIR if you're an inventor with a small, for-profit business that meets the following criteria: 

  • It's 51 or more percent owned by a U.S. citizen or permanent resident.
  • It has 500 or fewer employees.

The SBIR covers a dozen government agencies, and maximum grant values range from $150,000 for initial phases to $1,000,000 for subsequent phases.

Licensing Agreements 

Licensing can be an effective way to get funding for an invention while reducing the financial burden of manufacturing and marketing. By licensing your patented invention to an established company, you receive royalties in exchange for permitting them to produce and sell your product.

Key benefits of licensing:

  • Upfront payments or advances on royalties.
  • Continuous royalty income based on product sales.
  • Reduced risk, as the licensee handles production, distribution, and marketing.

Steps to pursue licensing:

  1. Research Potential Licensees: Identify companies that align with your invention’s industry.
  2. Develop a Licensing Proposal: Clearly outline your invention’s benefits, market potential, and licensing terms.
  3. File for Patent Protection: Ensure your invention is patented or patent-pending to strengthen your negotiating position.
  4. Negotiate Terms: Work with an intellectual property attorney to secure favorable licensing terms.

This option is particularly attractive to inventors lacking the resources to bring a product to market independently.

Working With Non-profits

Consider non-profits for grant opportunities for an invention with the potential to benefit society. Social enterprises have social and for-profit components. Non-profits enjoy tax exemption, so you can search for grants taking advantage of that status.

Join an inventors club in your area, and network with inventors to discover more grant opportunities. Visit the United Inventors Association site to find inventors clubs in various regions.

If you're a college student or faculty member at a college, you can apply for a grant from the National Collegiate Inventors and Innovators Alliance, which awards grants for inventions that meet the following criteria: 

  • It has commercial potential.
  • It has a positive impact on society.
  • It's an innovative technology.

Non-profits may offer grants to promote inventions in areas they're actively involved in.

Business Loans and Lines of Credit 

While grants and investors are often the first funding avenues considered by inventors, traditional business financing options, such as loans and lines of credit, can also help fund your invention’s development and patenting process.

Small Business Loans:

  • Available through banks, credit unions, and the Small Business Administration (SBA).
  • Require a solid business plan and proof of the invention’s commercial potential.
  • Interest rates vary based on creditworthiness and loan type.

Lines of Credit:

  • Flexible funding option allowing you to borrow up to a set limit as needed.
  • Suitable for covering ongoing expenses like patent application fees or prototype development.

Tips for securing a loan:

  • Prepare a comprehensive business plan emphasizing your invention’s market opportunity.
  • Maintain a good credit score and demonstrate the ability to repay the loan.
  • Consider SBA-backed loans, which often feature lower interest rates and more favorable terms for startups.

Loans can be a practical solution when grant funding is unavailable or insufficient.

Other Grant Sources

If the grantor you're interested in allows it, draw up professional plans to submit along with your grant application. If you're able to get an interview with a potential grantor, you can show them how serious and deserving you are when you have professional visuals to show committee members. It could make the difference in whether you obtain the grant or not.

Consider 'angel' investors, who sponsor innovations with donations typically ranging from $20,000 to $100,000. These investors expect a financial return, usually in the form of a small percentage of ownership in the new company. They're unlikely to be involved in the daily running of a business, but they may introduce you to important members of their network. To find angel investors in your area, contact the alumni association at your alma mater or the Chamber of Commerce.

Venture capital companies may offer millions of grant dollars since they tend to sponsor at a very high level. In exchange, they'll expect a significant percentage of ownership in a startup. These firms are often involved in a startup's strategic direction, and they're frequently represented on the board of directors.

Because the grant application process can be time-consuming and costly, grant money is important for many inventors who have limited funds. With financial backing that doesn't have to be repaid, inventors can completely focus their efforts on their creations.

Patent Assistance Programs and Contests 

Various patent assistance programs and contests offer financial aid, mentorship, or exposure to potential investors for inventors seeking patent funding.

Patent Assistance Programs:

  • Patent Pro Bono Program: Offers free legal help to under-resourced inventors through regional programs.
  • InventHelp: Assists inventors with patent referrals, prototyping, and marketing services (fees may apply).

Invention Contests and Competitions:

  • National Inventors Hall of Fame: Holds contests like the Collegiate Inventors Competition, offering cash prizes and mentorship.
  • Edison Awards: Recognizes innovative products and grants winners industry recognition, attracting potential investors.

Participation in these programs and contests can reduce patent-related costs and increase your invention’s visibility, improving your chances of securing additional funding.

Frequently Asked Questions

  1. What is the easiest way to get funding for an invention?
    Crowdfunding is often the easiest option for inventors with a marketable idea and strong promotional skills.
  2. Do I need a patent before seeking funding?
    While not always required, having a patent or patent-pending status increases your credibility and protects your invention during funding discussions.
  3. How much funding can I get through grants?
    Government grants like SBIR can offer between $150,000 and $1 million, while non-profit grants vary based on the organization and project scope.
  4. Are there risks to using angel investors or venture capitalists?
    Yes, these investors typically require equity in your business, which may reduce your control over the company.
  5. Can I get funding if my invention is not yet developed?
    Yes, early-stage funding options like grants, crowdfunding, and contests often support inventions in the concept or prototype phase.

If you need help with patent grants, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.