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.
1. For most Innovate UK applications (including the newer Growth Catalyst), awareness beats formality. Assessors want to see that you've searched the patent landscape, identified potential blockers, and have a plan. A professional prior art search with a brief FTO summary – 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. (That said, if your patent attorney recommends the full opinion for your own strategic reasons, that's a separate conversation worth having.)
2. 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.
3. 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. At pre-seed, it's premature. The key is matching the timing to the stage.
4. 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.
The underlying principle: match your FTO investment to what your specific audience actually needs to see at this specific moment. 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.