How to make a successful application for the CPCA Business Growth and Social Impact Investment Fund

By Janet Brown, Grant Services Manager

The CPCA Business Growth and Social Impact Investment Fund, provided by the Cambridgeshire and Peterborough Combined Authority, is offering a unique opportunity for businesses in the Green Tech and Low Carbon sectors.

With funding available in both debt and equity forms, their aim is to help businesses, particularly those in underrepresented areas, access the finance they need to grow.

Here’s what the CPCA say are the requirements to be able to apply for the fund:

• A viable product/service with compelling commercial potential
• Some existing sales and customers (for equity, credible near-term sales prospects may be sufficient).
• A requirement for finance to invest in scaling up activities that will deliver substantial growth impact
• Financial projections demonstrating how the funding will drive growth
• A committed management team with relevant background/experience
• Equity only: A realistic exit strategy with potential to be achieved within 5 years.

Below, we explore each requirement, along with our practical advice for meeting it.

“Viable product/service with compelling commercial potential”

The CPCA is looking for businesses with a product or service that has strong commercial potential and could make a significant impact in its target market.

• Our advice: Ensure you can clearly articulate the unique value of your product or service. Highlight market research that supports demand for your offering and describe the problem it solves.

Consider including testimonials or case studies from early adopters to strengthen your application.

The key is to make the CPCA believe that your product is not just innovative, but that it can capture a significant share of the market.

“Existing sales or credible near-term prospects (for equity applications)”

For debt funding, the business should already have existing sales and customers.

For equity funding, credible near-term sales prospects may suffice.

• Our advice: If you are applying for equity funding, provide evidence of sales activity, even if it’s early-stage. This could include signed letters of intent from potential customers or data showing significant interest (e.g., a waiting list or high engagement figures).

Showcasing your pipeline and demonstrating the work you’ve done to secure upcoming contracts will go a long way in building investor confidence.

“Requirement for finance to invest in scaling up activities”

The funding must be used for scaling up activities that will deliver substantial growth impact for your business.

• Our advice: Be specific in your business plan. Outline exactly how you intend to use the funds, whether for expanding production capacity, increasing staff, or enhancing marketing efforts.

Make sure to provide measurable targets – for instance, ‘hire five new salespeople to expand into three new regional markets within 12 months’ – to illustrate how the funding will directly drive growth.

“Financial projections demonstrating growth”

The CPCA requires financial projections to understand how the funding will lead to significant business growth.

• Our advice: Your projections should cover a five-year period, as this aligns with the loan term. Include revenue forecasts, cost estimates, and expected growth rates. Importantly, demonstrate a clear path to profitability or, for equity, to a position where the business is ready for an exit. Use conservative but realistic assumptions and ensure they’re supported by data, such as past performance or market trends, to provide a credible growth narrative.

“Committed management team with relevant background/experience”

A strong management team with a background that demonstrates the skills needed to execute the business plan is crucial.

• Our advice: Highlight the experience of each team member that is directly relevant to your business objectives. This might include previous successes in similar industries, specific technical expertise, or key contacts within the target market.

Consider creating concise profiles that summarise each member’s experience and their role in achieving growth.

If there are gaps in your team, outline your plan to fill them, as this shows a proactive approach to risk management.

“Realistic exit strategy (equity only)”

For equity funding, applicants need to propose a realistic exit strategy, ideally achievable within five years.

• Our advice: Identify potential exit routes early, such as acquisition by a larger company, a buyout, or even an IPO. Tailor your strategy to your industry – for instance, a tech business might target acquisition by a larger tech firm.

Be specific about the milestones that will make your business an attractive acquisition target and provide a timeframe that aligns with the investors’ expectations.

This will demonstrate that you have a clear path towards providing returns on investment.

“Co-investment of at least 30 per cent (preferably 50 per cent)”

Co-investment is crucial, with a preference for at least 50 per cent of the funds to come from additional investors who can bring strategic value.

• Our advice: Look for co-investors who can offer more than just financial support – strategic advisors, industry experts, or experienced mentors will strengthen your application.

The CPCA prefers partners who add value, so if your co-investors have industry contacts, operational expertise, or a network that can aid expansion, be sure to emphasise this.

We suggest that you build relationships early, so that by the time you apply, you already have strong commitments.

Final thoughts

The CPCA Business Growth and Social Impact Investment Fund is an exciting opportunity.

By understanding the key requirements and strategically preparing your application to address them, you can significantly increase your chances of success.

The key is to show your growth potential, prepare robust financial projections, and demonstrate how your business can scale sustainably.

By doing this, you’ll be well-placed to secure the funding you need.

For more information on the grant, please click here. 

To speak directly with our grants team, please get in touch.