What FTO depth is actually needed for a grant application vs a fundraise

Do you really need a full freedom-to-operate analysis before funding? The short answer is: it depends entirely on who you're asking for money and where you are in your journey. No investor is going to expect an early-stage startup to have considered FTO in depth, but they will expect full FTO at later stages and prior to market launch.

1. For most Innovate UK applications, awareness beats formality

For most Innovate UK applications (including the newer Growth Catalyst), assessors want to see that you understand what FTO is, that you are aware of the possibility of infringing other rights by simply doing what you want to do, and that you've searched the patent landscape, identified potential blockers, and have a plan. A professional prior art search with a brief FTO summary and analysis of a small number of key patent documents — typically £2,000–£5,000 — is proportionate here. A full formal FTO opinion at £15,000–£30,000 is more depth than the application requires and is not usually appropriate, both in terms of need and budget constraints for a start-up. A conversation with a patent attorney can usually identify the key "mission-critical" areas to focus the initial FTO on.

2. The EIC Accelerator has relaxed its IP requirements for 2026

The EIC Accelerator has actually relaxed its IP requirements for 2026. The new Work Programme acknowledges that formal IP disclosure obligations don't apply in every sector — particularly digital and software, where trade secrets and speed-to-market matter more than patent filings. For the now-shorter 20-page Step 2 application, you need a credible IP strategy section. But if you're seeking the equity component, be aware that the new technical due diligence process will probe deeper into your IP position, which may give rise to FTO-focused questions from the investor(s).

3. For a VC raise, FTO shifts entirely

For a VC raise, the purpose of FTO shifts entirely. Investors aren't scoring an application — they're assessing their own risk exposure. A qualified FTO opinion from a recognised attorney becomes important around Series A, because it appears on the DD checklist — though at this stage it still may not be overly extensive. At pre-seed, it's premature but some savvy investors will still want to see the level of detail under point (1) above. The key is matching the timing to the stage.

4. Having no IP awareness hurts you everywhere

The one position that hurts you everywhere is having no IP awareness at all. Both assessors and investors read "we have no IP issues" as "we haven't looked yet." Even a basic landscaping exercise with a brief memo demonstrates that you take this seriously — and that goes a long way.

Ensure you understand what FTO is, and how it is different to patentability so that you can answer DD questions appropriately. A chat with your patent attorney can help you prepare.

The underlying principle

Match your FTO investment to what your specific audience actually needs to see at this specific moment. For any issues you uncover, make sure you have a plan — in-licence, design around, patent expiry date means it is irrelevant by the time you launch etc.

Your patent attorney is a valuable partner in this — have an honest conversation with them about what's proportionate for the stage you're at.