Equity-free accelerators, fellowships and prizes
Programmes and competitions that give founders money, training or both without taking shares. Places are limited and competitive, and the money is usually modest.
- No security
How it works
Some accelerators take shares in return for cash and support. Those are a form of equity investment, covered under angel investment and venture capital. This route covers the ones that take no equity:
- Fellowships: a grant plus training and mentoring for founders. For example, the Royal Academy of Engineering's Enterprise Fellowships give up to £75,000 to UK university researchers and recent graduates with an engineering or technology innovation, with no fees, no equity and no claim on the intellectual property.
- Free accelerator programmes: run by banks, universities, corporates and public bodies. They give training, mentoring, workspace and introductions, but usually no cash. For example, Barclays Eagle Labs runs free programmes that do not require you to bank with Barclays.
- Challenge prizes: competitions with a cash prize for solving a set problem. Challenge Works, part of the innovation foundation Nesta, has run over 100 of them, with prize funds of several million pounds for the largest.
Each programme sets its own rules, deadlines and selection process. Read the terms carefully: check whether anything is taken in return, such as shares, a share of future revenue or rights to your ideas.
Upsides and downsides
Upsides
- No shares given up and nothing to repay
- Training, mentoring and contacts as well as money
- Being selected adds credibility with investors and customers
Downsides
- Places are limited and selection is competitive
- Cash amounts are usually small, and many programmes give none
- Deadlines and intakes may not match when you need the money
Risks
- Spending a lot of time on a programme that does not move the business forward
- Missing terms that take rights to your ideas or a share of future revenue
What it costs
- How it is priced
- No shares or repayments. You give your time to the programme
- Costs that are easy to miss
- Time spent applying and taking part, often over several months
- Some programmes ask you to be based in a certain place for a while
- Read the terms for any rights to your intellectual property or future revenue
Many programmes give support but no cash. Fellowships such as the Royal Academy of Engineering's give up to £75,000. Large challenge prizes can be worth millions, but only a few teams win them.
Does it fit?
Could fit when
- You are developing a new product, process or technology
- You are at the idea or early stage and want support as well as money
Unlikely to fit when
- You need money within weeks
- You need more than these programmes usually give
Who can use it
- Business types: Sole trader, Partnership, Private limited company, LLP, Community interest company, Co-operative or community benefit society
- Open to businesses with no sales yet
- Each programme sets its own rules, often by sector, stage, location or who the founders are
- Fellowships are often for researchers and recent graduates
- Selection is competitive
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all grants, tax reliefs and prizes
0%
0 of 4 ticked
- A clear innovation or idea
- Founder time to take part
- A programme or prize that fits
Regulation and protections
Not a financial product. Your rights come from each programme's or prize's terms and conditions.
Types of provider: National academies and research bodies; University and public-sector accelerator programmes; Bank and corporate programmes that take no equity; Challenge prize organisers.
Also consider
Sources
- Royal Academy of Engineering Enterprise Hub: Enterprise Fellowships · checked 7 October 2026
- Barclays: A beginner's guide to Eagle Labs · checked 7 October 2026
- Challenge Works (Nesta) · checked 7 October 2026