Consilium help Travelnest secure £2m R&D grant
The ability to capitalise on the vast potential of AI and automation in the hospitality sector requires resources, and resources require funding. This was the challenge facing Scottish business Travelnest, as they sought to enhance their product and range of services.
In this case study, we examine how Consilium Chartered Accountants supported Travelnest to secure £2m of R&D grant funding from Scottish Enterprise (SE).
Tell us about Travelnest…
A dynamic tech start-up based in Edinburgh, Travelnest helps hosts manage their holiday lets across multiple booking sites like Airbnb and Booking.com. By combining commerce and marketing functions on a single platform, Travelnest supports hosts in more than 50 markets worldwide to gain greater exposure and maximise revenue.
Why did Travelnest come to Consilium for help?
As with any technology business, one of the greatest threats to Travelnest is the pace of ongoing innovation. As the company looks to carve out a significant share of a global market estimated to be worth £64 billion, they engaged Consilium Chartered Accountants to support their application to Scottish Enterprise for R&D Grant funding of £2m.
“Securing Scottish Enterprise grant funding will support Travelnest in its research, and will allow the business to develop new technologies that create valuable additional services for our customers”, explains Chris Brooks, CFO of Travelnest. “Through the expansion of our internal resources, we will also be able to enhance the efficiency of our business model and be more competitive in the long term.”
How did Consilium help Travelnest prepare their R&D grant application?
Linzi Wilson and Colin McCrann of Consilium’s Corporate Finance team worked closely with Chris to create a detailed and compelling case for funding. Grant funding from SE would then be complemented by a further funding round from existing investors.
The critical elements of the application were the significant growth opportunities and the anticipated economic impact of securing funding. In addition to this, it was vital to confirm the local employment opportunities and value creation inherent to the project.
Grant applications are often time-consuming and complex. The Consilium team acknowledges this and works hard to keep as much of the administrative burden as possible from clients. This was a key attraction for Travelnest – having previously secured a £2.3m grant with Consilium’s assistance in 2018 – and allowed Chris to focus on running and growing the business while the application was underway.
In addition, Linzi and Colin liaised with Travelnest’s other advisers throughout the process to ensure all other aspects – such as financial projections – presented a consistent message in support of the application.
The Consilium team has a deep understanding of grant funders’ requirements and leverages this expertise to maximise clients’ chances of a successful award. It was this expertise that ensured all of the key criteria were met in the application and that common pitfalls were avoided.
What if Travelnest didn’t secure the R&D grant?
Throughout the grant application process, Consilium helped Travelnest communicate the specifics of their planned R&D – the development of a mobile app and the integration of AI and automation technologies – and the associated outcomes. This included the potential to create over 25 highly skilled R&D roles that would be retained after project completion.
Conversely, the application also outlined scenarios where R&D grant funding was not secured.
“Without the Scottish Enterprise grant, this project would take longer to complete and compromise our competitive position within the market”, says Chris. “Travelnest has great potential to be a global player in the sector and demonstrate Scotland’s ability to scale innovative businesses internationally.”
Did Travelnest secure their R&D Grant from Scottish Enterprise?
Thanks to the support of Consilium Chartered Accountants, Travelnest were successful in securing their £2m grant. The developments and innovations will be brought to the market in the next 12 to 24 months.
“Accessing grant funding is complex and time consuming, with often uncertain outcomes”, says Chris. “Consilium made it straight forward, and we couldn’t have done it without them.”
“We are delighted for Chris and the Travelnest team that they have secured R&D funding from Scottish Enterprise”, says Consilium Partner, Linzi Wilson. “Travelnest is a Scottish success story, and this project will help the business scale. Everyone at Consilium is excited to watch their progress in the coming months.”
What happens next for Travelnest and Consilium?
Over the next two years, Travelnest will draw down on the grant as it invests in its staff and in product R&D. This will help realise the outcomes of the grant, improving the product market fit, enhancing the range of services offered by the business, and improving efficiency. 25 new jobs will be created, with a consequential impact on the local economy.
Consilium will continue to support the business as it draws down the grant, providing Independent Accountant’s Reports in support of each claim and ensuring claims are error-free to avoid delays in accessing funding.
Unlocking growth potential with Scottish Business Grants
Applying for grant funding in Scotland can be a complex and time-consuming process, especially for owner-managed businesses. Consilium Chartered Accountants have a proven track record of delivering successful funding applications for clients like Travelnest.
To learn more about how Consilium can support your business to secure grant funding, visit the Scottish Business Grants section of our website.
Ready to start the grant funding application process?
We would be delighted to discuss how we can help your business access grant funding. For an informal and confidential meeting please contact Linzi Wilson.
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