Why Grant funding? The World’s Most Important Capital
While it’s rarely discussed outside of specific circles, grant funding is the most important capital vehicle in the world. Most of the core technology used in your phone was originally developed with grant funding.
While most capital seeks to minimize risk, grant funding has been proven as an effective tool for taking on the work of researching and developing solutions that will push humanity forward.
In addition to carrying the highest risk profile of any capital, grants are non-dilutive, require no repayment, and desired outcomes are typically impact focused.
Venture capital is much more agile and efficient, and better marketed. Unfortunately, the incentives and risk profiles of venture capital are frequently not aligned with addressing impact-driven objectives like economic empowerment and public good.
With total annual U.S. grant funding hovering near one trillion dollars, the sheer quantity of grant funding far outpaces any other type of capital.
This funding goes to smaller governments and organizations of all sizes to serve the public good and advance our nation’s technologies and global economic competitiveness.
Unfortunately, it’s estimated that 30% or more of this capital is wasted in inefficient processes and bureaucratic bloat. With a lack of accurate data on recipients, this funding also tends to be distributed conservatively, ending up in the same hands over and over.