Post #55: A Blue Economy Startup Funding Guide

Welcome all,

Funding is one of the biggest challenges for startups in the blue economy. Whether you're developing ocean tech solutions, sustainable aquaculture innovations, or marine conservation initiatives, securing capital is often the key hurdle to scaling impact. Many great ideas struggle to move past the early stages due to a lack of accessible funding, despite growing global interest in climate tech and sustainability.

From my experience working in the grant sector, I’ve seen firsthand how difficult it is for ocean-related startups to secure non-dilutive capital. While grants play an essential role, they are just one piece of the puzzle. Startups in this space need to explore a mix of grants, private investment, and alternative finance models to grow and scale effectively. Additionally, startups seek more than just financial support at times, including access to research labs, industry networks, strategic mentorship, and academic partnerships to refine their technology, validate market fit, and navigate regulatory landscapes—factors that can be just as crucial as funding in building a successful blue economy venture.

This guide aims to break down the funding landscape for ocean startups—where to find capital, how to access different funding sources, and what factors to consider when seeking financial support.

Next week, I’ll be celebrating one year of OceanTech Insider with the launch of a blue economy funding and investor repository, making it easier for founders to find the right financial opportunities.

Let's dive in!

Understanding the Funding Landscape for Ocean Startups

The blue economy—spanning sectors like marine tech, sustainable fisheries, conservation, and ocean data analytics—faces a unique funding challenge. Unlike traditional startups in fintech, SaaS, or consumer goods, many ocean-focused ventures require a mix of science, hardware, and long-term impact before achieving profitability. This means founders often need to combine grants, private investment, and alternative financing models to grow effectively, keeping in mind equity dilution/debt. Additionally, startups seek more than just financial support at times, including labs, network, strategy, and academic support for example.

Key funding sources available to ocean startups

Government Grants & Innovation Funding

Many governments provide non-dilutive capital to support ocean-related innovation, especially in areas such as marine conservation, fisheries, and renewable energy.

Examples:

• UK & EU Grants – Innovate UK Smart Grants, European Maritime Fisheries and Aquaculture Fund (EMFAF), DEFRA marine funding

• US Grants – NOAA Small Business Innovation Research (SBIR), National Fish & Wildlife Foundation

• Global Blue Economy Funds – World Bank’s PROBLUE, UNDP Blue Economy Accelerator

Pros: No equity dilution, strong credibility boost for further fundingCons: Competitive, slow approval process, often requires match funding

Impact Investors & Ocean-Focused Venture Capital

Private investors and venture capital firms are increasingly interested in climate tech and blue economy startups, but funding remains more limited than in other sustainability sectors.

Examples?

• Ocean 14 Capital – Focused on scaling sustainable ocean innovations

• Blue Horizon – Invests in alternative seafood and sustainable marine supply chains

• AiiM Partners – Specialises in data-driven ocean solutions and regenerative blue economy projects

Pros: Access to expertise, larger funding rounds, scalability supportCons: Requires equity trade-off, high growth expectations, not suitable for research-heavy projects

Corporate & Strategic Partnerships

Many large companies in the marine, energy, and shipping industries are funding startups as part of their sustainability strategies.

Examples:

• Sustainable shipping & logistics – Maersk, Wärtsilä, and Ørsted have startup partnership programs

• Fisheries & aquaculture – Companies like Thai Union, Nutreco, and Cargill invest in sustainable seafood innovation

• Ocean data & AI – Tech firms like Google and Microsoft are investing in ocean AI and climate monitoring solutions

Pros: Industry connections, potential for long-term contractsCons: May come with exclusivity clauses, harder for early-stage startups to access

Philanthropic & Conservation Grants

Some startups, particularly those with a non-profit or hybrid impact model, can access funding from foundations, NGOs, and ocean conservation funds.

Examples:

• Schmidt Marine Technology Partners – Supports tech innovation for marine conservation

• National Geographic Ocean Grants – Funds research-based marine projects

• Packard Foundation – Invests in sustainable fisheries and marine biodiversity

Pros: No equity dilution, ideal for conservation and research-focused projectsCons: Often limited to non-profits or hybrid impact startups

Alternative Finance & Crowdfunding

For startups that don’t fit the traditional funding model, alternative finance options like crowdfunding, revenue-based financing, and social impact bonds are emerging as viable alternatives.

Examples:

• Crowdfunding Platforms – Seedrs & Crowdcube (equity crowdfunding), Kickstarter & Indiegogo (product crowdfunding)

• Revenue-Based Financing – Startups receive upfront capital in exchange for a percentage of future revenue instead of equity

• Blended Finance Models – Combining grants, loans, and investment to lower risk for all parties

Pros: Less reliance on traditional investment, good for community-driven businessesCons: Not suitable for deep tech or capital-intensive startups

Grant Funding: Non-Dilutive Capital for Ocean Startups

For many ocean startups, particularly those in early-stage research, conservation, and deep tech development, grants provide a vital source of non-dilutive funding. Unlike private investment, grants do not require equity trade-offs, making them an attractive option for founders looking to develop solutions without giving up ownership. However, they come with their own set of challenges—high competition, long application processes, IP complications, commercialisation clauses and, in some cases, match funding requirements.

Who is Grant Funding For?

• Research-based and early-stage innovation projects – Startups developing AI-powered marine monitoring, sustainable aquaculture tech, or waste-to-value solutions.

• Conservation-driven ventures – Non-profits or impact-first startups focused on marine biodiversity, ocean plastic recovery, or carbon sequestration.

• Businesses bridging science and industry – Companies using research-led approaches to commercialise new ocean technologies.

Types of Grants Available

Government Innovation GrantsThese grants focus on funding R&D-heavy projects that align with national or international sustainability goals. They are ideal for startups needing capital to build prototypes, conduct feasibility studies, or test commercial applications.

• Innovate UK Smart Grants – Provides funding for cutting-edge innovations in marine technology and blue economy solutions.

• Horizon Europe (EU Funding) – Supports cross-border research collaborations in ocean conservation and sustainable fisheries.

• NOAA SBIR (US) – Small business innovation research grants focused on ocean science and climate resilience.

Climate & Conservation Grants

Many climate-focused initiatives include funding for ocean-related projects, particularly those targeting sustainable fisheries, plastic pollution, and marine biodiversity protection.

• BlueInvest (EU Initiative) – Grants and investment-readiness support for startups working in marine renewable energy, aquaculture, and ocean data.

• Sustainable Fisheries Fund (UK) – Supports projects improving the sustainability of UK fisheries.

• Marine Conservation Trust & Ocean Protection Foundations – Various grants for biodiversity conservation and ocean protection initiatives.

Private & Philanthropic Grants

These grants, often provided by foundations and ocean-focused NGOs, are ideal for startups working at the intersection of science, community impact, and technology.

• Schmidt Marine Technology Partners – Supports technology-driven solutions to ocean conservation challenges.

• National Geographic Ocean Grants – Focuses on research-led ocean exploration and conservation projects.

• Packard Foundation – Invests in sustainable fisheries, marine biodiversity, and climate resilience projects.

Pros and Cons of Grant Funding

✅ Pros

• No equity dilution – You don’t have to give up ownership of your company.

• Credibility boost – Securing a grant can strengthen your case for future funding.

• Encourages innovation – Many grants fund projects that wouldn’t yet attract private investment.

❌ Cons

• Highly competitive – Many grants receive hundreds of applications for limited funding.

• Slow application process – It can take months to secure funding, which isn’t ideal for urgent cash flow needs.

• Match funding requirements – Some grants require you to contribute your own capital or secure co-investment.

• Some grant funds come with hidden IP research use and commercialisation clauses.

  
  

How to Increase Your Chances of Winning a Grant

• Be clear on your impact – Funders want to see measurable, real-world benefits, not just ideas.

• Find the right match – Many grant applications fail because the startup doesn’t fully align with the fund’s objectives.

• Tap into grant networks – Collaborating with universities, NGOs, or accelerator programs can improve your chances.

• Leverage grants as stepping stones – Use grant funding to de-risk private investment, showing traction before approaching VCs or angel investors.

Private Investment: Attracting Capital for Scaling Ocean Startups

While grants can provide a strong foundation for early-stage research and development, most startups looking to scale will need private investment. Investors bring more than just capital—they provide strategic guidance, industry connections, and long-term financial backing that can help a business grow beyond its initial funding phase. However, securing private investment comes with higher expectations for growth, profitability, and returns.

Who is Private Investment For?

• Startups with scalable commercial potential – Companies developing AI-driven marine data platforms, sustainable fisheries tech, or ocean monitoring solutions.

• Businesses looking to move beyond grants – Startups that have validated their concept and now need funding to scale operations, enter new markets, or commercialise research.

• Companies with clear revenue potential – Investors typically avoid businesses that rely solely on grants or subsidies. A solid revenue model is key.

Types of Private Investment

Venture Capital (VC) & Impact InvestmentVenture capital is best suited for high-growth, scalable businesses that can generate significant returns over time. Impact investors, on the other hand, focus on both profitability and measurable environmental or social impact.

• Ocean 14 Capital – Invests in high-growth, ocean-focused businesses in sustainable aquaculture, marine conservation, and ocean data solutions.

• Blue Horizon – Focuses on alternative seafood, sustainable marine supply chains, and climate-positive ocean innovations.

• AiiM Partners – Specialises in data-driven ocean solutions, AI for marine ecosystems, and blue carbon markets.

Angel Investors & High-Net-Worth Individuals (HNWIs)

Angel investors are typically entrepreneurs or industry experts who invest their own capital in early-stage companies. Many wealthy individuals are turning to ocean impact investing as part of their portfolio.

• Angel networks & climate-focused investors – Platforms like AngelList, Sustainable Ocean Alliance, and LinkedIn networking can help connect startups with aligned investors.

• HNWIs with an interest in sustainability – Many private investors are backing blue economy ventures as part of their ESG commitments.

Corporate & Strategic Investment

Large companies in shipping, fisheries, energy, and marine logistics are looking to partner with innovative startups. Corporate investors often fund pilot projects, joint ventures, or acquisitions.

• Sustainable shipping & logistics – Companies like Maersk, Wärtsilä, and Ørsted run startup partnership programs.

• Fisheries & aquaculture innovation – Major players like Thai Union, Nutreco, and Cargill are investing in sustainable seafood solutions.

• Marine AI & ocean data – Tech giants like Google and Microsoft are backing ocean AI, climate monitoring, and marine analytics startups.

Pros and Cons of Private Investment

✅ Pros

• Larger funding amounts – Can support rapid scaling, hiring, and market expansion.

• Industry expertise & connections – Investors provide strategic guidance and access to networks.

• Validates commercial viability – Attracting investment signals that your business has strong market potential.

❌ Cons

• Equity trade-off – Investors take a percentage of ownership, which can dilute control.

• High growth expectations – Investors look for scalability and exit opportunities, which may not suit all business models.

• More pressure & accountability – Unlike grants, investors expect a return on their capital.

How to Attract Private Investment for an Ocean Startup

• Demonstrate strong commercial potential – Investors want to see market demand, revenue growth, and a clear business model.

• Refine your pitch – Investors look for clear storytelling, strong financials, and an experienced team.

• Leverage grants & partnerships – Many investors prefer startups that have secured non-dilutive funding first to reduce their risk.

• Network in the right circles – Join blue economy accelerators, pitch competitions, and impact investor events to gain visibility.

  
  

The Future of Funding in the Blue Economy & What’s Next

The funding landscape for ocean startups is evolving, with growing investor interest but still significant gaps in available capital. While climate tech investment surpassed $70 billion in 2023, ocean-related funding remains a fraction of that total, despite the ocean’s role in climate mitigation and biodiversity. Investors and governments are starting to recognise this imbalance, but funding for blue economy startups remains highly competitive.

Key Trends Shaping Blue Economy Funding

• Increased Climate & Impact Investment – Global impact investment reached $1.2 trillion in 2023, yet funding for ocean-based climate solutions is still underdeveloped. Initiatives like the Ocean Resilience Innovation Challenge and Ocean 14 Capital’s $200M fund are steps in the right direction, but there’s still a long way to go.

• Tech-Driven Solutions in Demand – Startups using AI, big data, and automation for ocean monitoring, fisheries management, and marine conservation are attracting the most funding. The EU’s €500M BlueInvest Fund has prioritised data-driven ocean tech in its latest investments.

• Blended Finance Models Emerging – The combination of grants, venture capital, and alternative finance is becoming the go-to approach for startups looking to scale. The World Bank’s PROBLUE initiative has been actively blending public and private capital to fund sustainable ocean projects.

What’s Next?

• A Funding & Investor Repository – Next week in Post #56, I’ll be launching a resource hub for grants, investment funds, and alternative finance options tailored to oceantech/ blue economy startups.

• Expanding Private Investment Networks – More investors are entering the space, but startups need to know where to look and how to position themselves to attract capital.

• More Coverage on Funding Strategies – I’ll continue diving into how startups can improve their chances of securing funding and scaling successfully.

Concluding remarks from yours truly

Funding an ocean startup is never easy, but the opportunities are growing. More investors, grants, and alternative finance models are entering the space, and while the blue economy still lags behind other climate tech sectors in total funding, that gap is starting to close.

The key takeaway? There isn’t one perfect funding route. Startups that mix grants, investment, and partnerships will be best positioned to scale. It takes persistence, creativity, and a solid understanding of where to look—but for those willing to put in the effort, capital is out there.

Next week, I’ll be launching an MVP funding & investor repository— I know firsthand how difficult it can be to track down the right funding sources and my mission is to make this a little simpler for founders. If you’re working on something in this space, I’d love to hear from you. What’s been your biggest funding challenge? What’s worked?

Hope you enjoyed the read!

Warm wishes,

H

"We are tied to the ocean. And when we go back to the sea, whether it is to sail or to watch, we are going back from whence we came." – John F. Kennedy

Sources

Government Grants & Innovation Funding

1. Innovate UK Smart Grants – https://www.ukri.org/councils/innovate-uk/

2. Horizon Europe Funding – https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/home

3. NOAA Small Business Innovation Research (SBIR) Grants – https://www.noaa.gov/organization/omb/small-business-innovation-research

Private Investment & Venture Capital

4. Ocean 14 Capital – https://ocean14capital.com/

5. Blue Horizon – https://bluehorizon.com/

6. AiiM Partners (Blue Economy & Climate Tech Investment) – https://www.aimpartners.com/

Philanthropic & Conservation Grants

7. Schmidt Marine Technology Partners – https://www.schmidtmarine.org/

8. National Geographic Grants – https://www.nationalgeographic.org/society/grants-and-investments/

9. Packard Foundation (Sustainable Fisheries & Ocean Conservation) – https://www.packard.org/what-we-fund/ocean/