Grant Funding: A Gateway to Growth for Innovative Kiwi Companies
When you’re pushing boundaries with a new business project, funding can make or break your momentum. Yet one of the most powerful funding sources is often overlooked by Kiwi businesses: government grants.
Despite hundreds of millions in non-dilutive funding being available, grants are often thrown in the “too hard” basket—seen as too complex, too competitive, or simply not a fit. And even when businesses do begin the process, many give up halfway — not for lack of potential, but because the process feels too hard. Or they submit an application, aren’t successful, and assume it’s not worth trying again.
But with the right support, government grants can be a powerful catalyst for growth—funding innovation, opening doors to new markets, and enabling you to move faster without straining existing capital.
In this article, we’ll unpack Aotearoa's grant funding landscape — what’s out there, what makes a strong application, and why so many businesses miss out. We’ll break down the key funds available, highlight common pitfalls, and show how Swell helps Kiwi companies turn grant funding into a real lever for growth.
What Exactly Are Government Grants?
Government grants are a form of non-repayable funding that support specific, future-focused projects. Unlike tax incentives such as the R&D Tax Incentive (RDTI), which reimburse costs after the fact, grants typically provide funding in stages throughout a project’s lifecycle—tied to milestones or deliverables—helping businesses de-risk investment in new capabilities, infrastructure, or strategic initiatives.
They can also complement existing funding sources, easing pressure on cash flow and enabling more confident decision-making.
Note: Some programmes, such as those offered through Kānoa, may involve loan or repayable grant structures. These fall outside the scope of this article, which focuses on non-repayable government grants.
Most grants are tied to government priorities—like sustainability, regional development, or innovation—which can shift over time in response to political, economic, or societal change. As a result, new grants emerge regularly, while others evolve or close. While they’re often seen as “free money,” grants are better understood as targeted government investments—backing projects that deliver public value, not just commercial return. Approaching your application with that lens can make all the difference.
Some grants are always open for applications, while others operate in funding rounds. Either way, the bar is high. Grants are typically competitive, project-specific, time-bound, and require co-investment. To succeed, businesses must show strong alignment to the grant’s goals, provide solid evidence of commercial potential, and demonstrate the capability to deliver.
In a nutshell, government grants:
- Are non-dilutive (no equity required)
- Fund specific, future-focused projects
- Require co-investment from the applicant
- Align with changing government priorities
- Can be open or time-bound (closed-round)
- Can be competitive
- Are evidence-driven
The Grant Funding Landscape – What's Out There?
New Zealand’s grant landscape is diverse and dynamic, with funding opportunities available across focus areas, sectors, and business stages. Whether you're just beginning to explore R&D or scaling a proven solution globally, there are grants designed to support your journey.
- Grants by Focus Area: Many grants are aligned to government priority areas. For example, the Waste Minimisation Fund (WMF) supports projects that reduce waste and improve resource efficiency—ideal for businesses working on sustainability-focused initiatives.
- Grants by Sector: Some funding is industry-specific, such as the Primary Sector Growth Fund (PSGF), which targets innovation in agriculture, forestry, and other primary industries.
- Grants by Business Stage: Whether you’re early in your R&D journey or ready to expand offshore, there’s support available. The New to R&D Grant helps businesses start structured innovation work, while the NZTE International Growth Fund is aimed at more mature businesses eyeing global markets.
- Support for Māori Economic Development: Dedicated funds like the newly launched He Ara Whakahihiko Capability Fund back Māori-led businesses and initiatives that contribute to regional and cultural development.
Notable Grants Include:
- Primary Sector Growth Fund (PSGF) – sector growth & innovation
- Waste Minimisation Fund (WMF) – sustainability and circular economy
- Ārohia Trailblazer – innovative commercialisation
- New to R&D Grant – early-stage research
- Provincial Growth Fund (PGF) – regional development
- He Ara Whakahihiko Capability Fund – Māori-led science, innovation, & tech
- Horizon Europe – large-scale, international innovation projects
- NZTE International Growth Fund – global expansion
- EECA Grants – energy efficiency and carbon reduction
With so many grant programmes on the table, identifying the right one for your business—and more importantly, for your specific project—is crucial. Alignment is key to building a compelling, fundable case.
Common Grant Application Hurdles
Grants can be competitive—and understandably so. With limited funding and high demand, only the most compelling, well-structured applications make it through. Even innovative companies can stumble if they’re not set up to meet the expectations of grant assessors. Here are some of the most common challenges we see:
- Limited Internal Capacity: Preparing a strong application takes time, strategy, and attention to detail. Many businesses simply don’t have the internal resources or expertise to navigate the process effectively—especially while juggling day-to-day operations.
- Misaligned Project Framing: A great idea doesn’t automatically make a great grant pitch. One of the biggest missteps is treating grants as general business funding. Grants are not there to fund your business—they're there to fund a specific project. To succeed, the project must be clearly defined and framed in alignment with the grant’s intended outcomes.
- Unclear public benefit: While the funding supports your project, the government expects its investment to deliver value beyond your business. Funders want to see how your project will benefit New Zealand—whether that’s through job creation, sector-wide innovation, or solving a nationally relevant problem. You need to clearly articulate how your project creates broader impact.
- Weak Co-Investment or Commercial Case: Most grants require you to contribute funding too. If you can’t demonstrate skin in the game—or a clear path to commercialisation—it can be a red flag. And if the funder isn’t confident you can sustain your share of co-funding across the full project duration, your application is unlikely to succeed.
- Unclear Delivery Structure: Who’s doing what, and how will it actually happen? Funders want to see credible delivery plans, capable governance, and clarity around roles and responsibilities.
- Incomplete Financials and Forecasting: Vague or patchy financial information can quickly sink an application. You’ll need to show realistic budgets, sound forecasts, and a clear picture of how the funding will be used.
- Poor Timing or Retrospective Work: Grant funding takes longer than many expect. From preparation to approval and contracting, the process can take several months—and in some cases, up to a year. It’s also important to note that most grants don’t fund work already completed. If your project is already underway, you may not be eligible. Careful planning and timing are essential to ensure your application aligns with both funding windows and project milestones.
These hurdles are common—but they’re not deal-breakers. With the right guidance, they can be navigated with confidence. That’s where Swell comes in.
How Swell Helps Kiwi Businesses Secure Grant Funding
At Swell, we specialise in turning promising ideas into fundable, well-structured projects. For many businesses, the challenge isn’t a lack of innovation, it’s knowing how to frame and present their work in a way that resonates with funders. That’s where our expertise makes the difference.
- Project Architecture: We help shape your concept into a compelling, clearly defined project. Often, a business comes to us with a single idea—our job is to flesh it out, identify additional workstreams that will enhance your project, and align it with the right grant objectives.
- End-to-End Support: From identifying the right grant opportunity to crafting a strong application and supporting documentation, we’re with you at every stage. This means taking work off your shoulders so you can stay focused on running your business. And our support doesn’t stop once we hit “submit.” We continue to manage the review process and provide support as your project moves into contracting and delivery.
- Deep Knowledge of the Landscape: Our team brings hands-on experience from both sides of the table—having successfully applied for grants and assessed them. This dual perspective gives us unique insight into what makes an application stand out, and how to avoid common pitfalls.
- Confidence in Compliance and Delivery: Grant assessors need to trust that your business can deliver. We help you present a clear plan, solid governance, and credible financials that build that confidence.
👉 Learn more about Swell’s grant funding services
Case Study: NILO
With Swell’s support, NILO secured a $6.2 million grant from the Ministry for the Environment’s Plastics Innovation Fund — funding that accelerated the commercialisation of its soft plastics recycling system. The grant enabled NILO to stay and scale in Aotearoa, contributing directly to New Zealand’s sustainability goals and circular economy.
Ready to Explore Grant Funding for Your Business?
If you’ve got an ambitious project and you're curious about what funding might be out there, we’d love to help. At Swell, we work alongside innovative Kiwi businesses to unlock grant funding that accelerates growth—without the guesswork.
Let’s turn your ideas into a fundable, high-impact project.
Get in touch to explore your options, assess eligibility, or just have a conversation about where to start.