South Carolina founders are building ambitious companies, but figuring out where to find non-dilutive funding, grants, and strategic support can feel overwhelming. At the February Founders Forum, hosted by NextGEN and sponsored by InnoVision Awards, leaders from across the state broke down how the funding ecosystem actually works and how founders can plug into it.
The conversation, moderated by Julie Kunkle of the South Carolina Department of Commerce, featured representatives from:
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3Phase
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Fraunhofer USA Alliance & South Carolina Council on Competitiveness
Here’s what founders learned:
Start with Clarity — Not a Perfect Pitch Deck
One of the biggest misconceptions? Needing a polished deck before reaching out.
You don’t. 3Phase outlined a clear first step, which is to submit an online application at 3phasesc.com. If there’s alignment, you’ll have a 30-minute introductory call.
What they’re looking for isn’t polish. It’s clarity:
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What are you building?
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Who does it help?
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Where are you in your journey?
From there, they help determine whether federal innovation funding (SBIR or STTR) is a fit.
Understanding SCRA’s Role
SCRA is often perceived as competitive and it is selective, but there’s a reason. As a legislatively chartered organization funded through tax credits, SCRA must demonstrate measurable returns to South Carolina citizens.
That means its focus is on:
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High-growth, scalable companies
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Job creation in South Carolina
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Follow-on private investment
It is not designed primarily for lifestyle or service-heavy businesses.
If your company qualifies for SCRA membership, there is no financial fee. The investment is your time through application, evaluation, and engagement. In return, founders gain access startup grants, bridge funding, and strategic connections.
SBIR & STTR: America’s Seed Fund
Much of the conversation centered around SBIR and STTR programs administered across 11 federal agencies. In simple terms:
Phase I funds proof of concept (~$250K–$300K).
Phase II supports development (~$1M+).
“Phase III” is where private capital steps in.
The key difference:
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SBIR: Majority of funds must stay within the company.
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STTR: Allows greater collaboration with a formal research partner, often a university.
Award rates can be competitive (often under 15%), but even unsuccessful applications generate valuable feedback. The takeaway is that these programs are complex, but founders don’t have to navigate them alone.
Where Fraunhofer & SC Competes Fit
Kelly Baird explained how Fraunhofer USA Alliance and South Carolina Council on Competitiveness help de-risk innovation. Their starting point is simple: a clear problem statement and impact case.
From there, they tap into a global research network and South Carolina universities to bring advanced R&D capabilities into local companies. In many cases, the South Carolina Department of Commerce helps offset project costs.
The role is applied research and technical advancement. Commercialization remains the founder’s responsibility.
The Bigger Message
Perhaps the most important takeaway from the room is that all these organizations collaborate. They refer founders to one another. They meet regularly. They are actively working to close funding gaps, including “bridge” funding between federal phases.
You don’t need to perfectly understand the ecosystem before engaging it. You just need to start.
Practical Next Steps for Founders
- If you’re building a scalable, innovation-driven company in South Carolina:
- Visit 3phasesc.com and review eligibility.
- Draft a one-paragraph impact statement outlining your problem, solution, and economic impact.
- Connect with an entrepreneur support organization like NextGEN or Flywheel Coworking to clarify your pathway.
- Keep showing up. Access often begins with conversation.
The funding landscape may be complex, but as this Founders Forum demonstrated, South Carolina’s innovation partners are working together to make it more accessible and more navigable for founders ready to scale.
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