It’s tough enough for startups to get venture capital funding, especially if they are in emerging industries, such as cleantech, where unproven technologies might seem risky.
Government research grants fund much of this new technology. And new research from Associate Professor Adam Fremeth shows such grants might also trigger an unexpected chain reaction. Winning a prestigious government research grant may help such startups to subsequently receive venture capital (VC) funding.
“Research grants prove to be good signals of startup quality in early-stage emerging industry contexts where few other proofs of quality exist,” said Fremeth.
