Funding & Grants
Exploring Alternatives to Traditional Funding
Healthtech startups face unique challenges, particularly when it comes to securing the funding necessary for early stages of product development, clinical trials, regulatory compliance, and other foundational elements crucial to bringing an innovative health solution to market. Unlike other tech sectors, healthtech demands rigorous validation through clinical trials and the development of products that comply with strict health regulations.
For many startups, equity investment isn’t always the ideal first step. Giving up ownership in exchange for capital can limit a founder’s control over their company’s direction. While traditional bank loans are another route, they often come with rigid repayment terms and interest rates that don’t match the early-stage cash flow reality of most startups.
As a result, “soft” funding options—such as grants and non-dilutive loans—are becoming increasingly attractive for healthtech entrepreneurs.
What Is Soft Funding?
Soft funding refers to capital that does not require giving up equity or ownership. These funds—often distributed through government agencies, nonprofit initiatives, or health-focused financial programs—offer much-needed flexibility.
Soft funding enables startups to focus on product development, research, and meeting regulatory requirements without the pressure of rapid returns. Because these programs are often designed to support public good, they are particularly aligned with the mission of many healthtech and life science ventures.
Navigating a Complex and Evolving Landscape
Despite their appeal, soft funding sources can be challenging to access. The landscape changes frequently, eligibility requirements vary, and funds are often tied to specific government priorities or regional strategies. Some grants are available only to certain development stages or geographic locations, and application processes can be time-consuming and highly competitive.
To make the most of these opportunities, startups need to stay informed and often benefit from expert guidance.
How CO-AX Supports You
At CO-AX, we track funding opportunities nationally and internationally, with a special focus on the life science and healthtech sectors. We help you:
Identify relevant funding programs
Understand eligibility criteria
Strategize and structure applications
Connect with partners for larger, collaborative projects
Choose whether to apply independently or through trusted third-party writers (which we recommend for more competitive grants)
“Soft funding can be a powerful tool for early-stage health innovators—but knowing where to look and how to apply is half the battle. At CO-AX, we help startups navigate this space strategically, so they can access resources that fuel growth without giving up ownership.”— Göran Leonardsson, Business Advisor, CO-AX Accelerator
Funding & Grants: Key Resources for Startups
Securing early-stage funding is often critical to turning innovative ideas into scalable businesses. Fortunately, Sweden offers a strong ecosystem of public funding and advisory support for startups working with innovation, sustainability, and growth.
Here are some essential platforms to explore:
Vinnova – Sweden’s Innovation Agency
Vinnova offers a wide range of grant opportunities for startups, particularly those developing cutting-edge technologies or working toward societal impact. Use their portal to find open calls and match your project with relevant funding.
ALMI provides loans, advisory services, and funding support to startups and growth companies across Sweden. They’re a strong partner for businesses that need capital and coaching to move from idea to market.
Västra Götalandsregionen – Funding for New Innovative Companies
Targeted at early-stage, innovative companies located in Västra Götaland, this regional initiative offers grants and support for startups with high growth potential. Ideal if you are developing your company in this region.
For more information, visit European Innovation Council and European Commission - EU Funding & Tenders Portal
