In this guide:
1. Overview
The Innovation Challenge Fund seeks to support new solutions to the UK screen sector’s most critical challenges. Between 2024 and 2026, up to £1.8 million will be distributed to help not-for-profits to innovate, developing new approaches to persistent problems, whilst gaining insights that benefit the whole screen sector.
Our first Innovation Challenge Call will fund innovations in the video games sector – an industry facing a range of challenges alongside a rapid pace of change.
We are posing two separate challenges, addressing related issues around the transparency, navigability and diversity of the UK video games sector.
You can apply to meet one or both challenges, but you’ll need to apply separately for each one.
2. Challenge Call 1 – video games
Challenge 1A: Transformative open data for the UK video games sector
Currently, data on and for the UK video games sector is fragmented, incomplete or inaccessible, exacerbating the industry’s lack of transparency and making it impossible to capture the UK’s creative output in this field. This is particularly challenging for smaller-scale developers and producers, who cannot access useful information to support the development of their projects. It also means that the independent UK video games sector cannot accurately evidence its value or the challenges it faces, limiting its ability to instigate policy change and leverage funding and support.
Long-term, this reduces the diversity of the range of developers and organisations whose projects can thrive in the industry. It also makes it impossible to capture an accurate picture of the current UK video games landscape, where issues exist and how they could be addressed, stalling positive change in the sector.
Data which is not currently accessible for the UK video games sector includes:
- a complete list of all UK video games released annually
- a centralised database of sales figures
- comprehensive and up to date workforce demographic data, highlighting how the sector performs in terms of diversity
- other comprehensive data relating to workforce, including skills gaps and shortages, training routes (which are commonly used, which are not and why), and data on workforce churn and forecasted growth
- information allowing developers or producers to benchmark salaries or budgets against similar projects
- centralised information on all funds available to support video games, and the projects these funds have supported
- where video games are being made, and the geographical spread of funding
How this challenge addresses the issues
This challenge will support innovation in this area by inviting organisations to collect and publish useful open data for the UK video games sector.
Specifically, it will challenge the successful applicant to provide ongoing access to never-before compiled information and insights, and potentially new data, that will directly benefit the video games sector, particularly independent developers and studios.
What a successful proposal should include
In your application, we’ll expect to see:
- a delivery plan to develop and test a viable data collection process and launch a public-facing platform – this should surface data and insights that are demonstrably useful to the video games sector, addressing one or more of the data gaps listed above
- as an example, this could be the development of a new ‘digital first’ system for collecting and presenting workforce data in an accessible database, or compiling a comprehensive list of all UK games released and the financial support they have received – however this may not be the only approach, and we are keen to hear any innovative ideas which address at least one of the data gaps above
- an outline of how your proposed approach would increase transparency and collaboration by encouraging data sharing, making data comparable across organisations and the sector, and building relationships within and across the UK video games sector
- an innovative use of processes and systems to create a foundation of reliable insights which can be used to advocate for support and progress
- evidence of buy in from across the sector, demonstrating that there is widespread support for this idea and the input needed to make it happen
- a plan for legacy, including modelling an approach to continue this work for a minimum of 2 years after this funding award has been spent
- a plan for how the learnings from this work will be documented and shared for maximum impact across the sector
For Challenge 1A, the funding amount available is a maximum of £250,000.
Challenge 1B: Support for under-represented emerging developers
The video games sector can be opaque and difficult to navigate for emerging developers. In addition, the workforce, which is 67% male and 89% white according to the latest Ukie Census, severely lacks diversity.
A lack of transparency around how the sector operates restricts new, emerging and smaller-scale games developers with creative talent and high-potential ideas from being able to develop their work effectively and reach their customer base.
This means established developers can more easily secure financial support and exposure, limiting opportunities for emerging and under-represented developers. Ultimately, the industry loses out on including a broader range of voices who create more diverse and innovative new games.
How this challenge addresses the issues
This challenge call seeks to fund innovative ways to address the barriers facing emerging under-represented developers, supporting them to bring their products to market.
These barriers include:
- a lack of understanding and support related to self-publishing
- challenges around writing successful funding applications and navigating funders’ requirements
- a lack of understanding around the business development side of the industry
- a lack of clarity around the support available for emerging developers and how to access it
- a lack of accountability and knowledge sharing across the sector
- a low appetite for risk, meaning that new developers and ideas are often overlooked in favour of more commercially successful and less innovative projects
What a successful proposal should include
In your application, we’ll expect to see a:
- description of the development of a new tool, application of technology or approach which addresses one or more of the above barriers
- examples include a digital tool which supports under-represented developers to identify and apply for funding opportunities, or an innovative system to demystify and support the process of self-publishing – these are illustrative examples, and we would be interested in receiving any innovative ideas that tackle the barriers listed above
- description of how the proposed innovation will be demonstrably useful to emerging games developers working on early-career projects
- clearly demonstrated understanding of under-representation in the sector, and a plan for how this work would tackle the issues associated with this to help improve EDI (Equity, Diversity and Inclusion)
- clearly demonstrated understanding of the risks this work might face, and how these, or any potential negative impacts from the work, would be mitigated
- plan for legacy and lasting impact on the sector beyond this funding round
- plan for how the learnings from this proposal would be documented and shared for maximum impact across the industry
For Challenge 1B, the funding amount available is a maximum of £100,000.
Deliverables and reporting
In your application you’ll need to identify the specific activity you’ll deliver (your ‘deliverables’) using the funding, as outlined for each challenge in section above. Your deliverables should include:
- tangible assets created to address and deliver the challenge, which should be publicly available by the end of the 2 year award term and include a legacy plan for your continued use or availability without further public funding
- as a guide, we expect that proposed innovations will be ready to demo or user test within 6 to 12 months of award, and be ready for public launch within 9 to 16 months
- at least one public sharing of learnings: in line with the fund’s goals to share valuable learning and increase capacity and understanding across the sector, you should produce at least one output which shares any insights gained from developing and delivering this innovation (for example learnings from building and maintaining a data portal, or on improving the inclusivity of the sector)
- this could include toolkits, workshops, presentations, blogs or webinars
- these outputs are in addition to your publicly available assets and final challenge report
In order to monitor progress and delivery of the challenge you’ll be required to submit:
- eight-weekly performance reports summarising progress, learnings, outputs and impacts at the stage of the report, as well as highlighting any instances of the funded innovation having use or impact in the wider sector
- these will include a narrative update that includes detail on any changes to plans in comparison to those previously approved by BFI; update on Key Performance Indicators (KPIs); and cost report progression against budget (the Performance Reports)
- a final challenge report due no more than two months after the award term. This should incorporate a final cost report (not to be shared publicly), a narrative report, including details on development and delivery, the legacy of the work and evidenced impacts for the wider sector and confirmation of the deliverables have been met. We have the right to publish elements of the Final Challenge Report in order to share learnings with the industry and public
3. Delivering against the BFI’s National Lottery Strategy
The BFI National Lottery strategy is underpinned by a series of principles and outcomes, which our funds contribute to achieving.
Critically, applications to the Innovation Challenge Fund must be:
- designed to benefit the intended sector (UK video games in this case)
- identifiably for public benefit
Strategic priorities
Every successful application, irrespective of the challenge, must contribute significantly to the priorities of our strategic framework listed below.
Creativity and storytelling
Anyone can create original screen work, from first-time creators to world-class professionals
- creative talent is supported and nurtured, as they emerge and throughout their careers
- people are better enabled to innovate and experiment creatively
Success in a changing landscape
Independents and cultural organisations can adapt and thrive in a changing landscape
- better support available for small and medium-sized enterprises and independents to develop their businesses
- evidence-based insight and analysis of the screen sector is readily available to all, supporting organisations and driving policymaking
- screen organisations have significantly reduced their carbon footprint
National Lottery funding principles
In addition, all of the activity this fund supports must contribute towards delivering the BFI’s three principles for National Lottery funding.
Equity, diversity and inclusion (EDI)
We champion everyday inclusion at the BFI. At least one challenge issued through this fund will focus on EDI – for example, increasing industry access for an under-represented group. In addition, the fund as a whole will be evaluated on its overall impact on helping the sector achieve better inclusion. Applicants to this fund will be asked to consider how their proposal meaningfully tackles under-representation in relation to disability, gender, race, age, sexual orientation and socio-economic status, while also considering the interactions of these identities and any other barriers to opportunity.
UK-wide
Applications to the fund are sought from applicants based across the UK. The nature of each challenge will indicate whether project proposals can offer UK-wide benefit in terms of their intended impact, or whether on occasion their impact may be more specialised or localised in scope. Some challenges, for example, may be specifically designed to benefit parts of the UK screen sector outside of London and the South East of England. Across the life of the fund we aim to make awards to organisations based, and with benefit reaching, across the UK.
Environmental sustainability
All organisations awarded funding through the Innovation Challenge Fund will work with Julie’s Bicycle to ensure their funded activity is designed to minimise negative impact, and where possible create positive outcomes, in relation to environmental sustainability. We may also connect organisations whose projects relate to production activity with BAFTA albert.
Key Performance Indicators
KPIs help us measure the success of funded innovations. They will be specific to each challenge, and set in collaboration with you, if you’re successful. There are fund level KPIs that all awardees will need to meet:
- demonstrate the development, user testing and launch of an innovative new process or output (for example a new application of technology, process methodology, delivery model, network or tool). As with all innovation funding, we anticipate that there may be unexpected outcomes as part of this process, which should be captured and shared with the sector. In the case that negative outcomes during development lead to the innovation being unable to launch, then the learning around this must be published to the sector in lieu of the original output
- produce one or more outputs which disseminate learnings and insight for the benefit of the wider sector (for example a report, webinar, workshop or presentation at an industry event)
- contribute to an evidence base around ‘what works’ and ‘what doesn’t’ in terms of innovation design, processes and tools in the screen sector
- support BFI in identifying a ‘results chain’ for at least three awards, where the wider sector is seen to be using or benefitting from the results of innovation or insight
Specific KPIs relating to Challenge 1A could include:
- the publishing of a database surfacing new and useful data on and for the UK video games sector
- number of user engagements with this database over the award term
- number of outputs publishing insights drawn from newly compiled data to support the independent video games sector in the UK
- evidence of a number of additional stakeholders within the sector utilising data made public by this innovation to generate further insight and impact
Specific KPIs relating to Challenge 1B could include:
- the publishing of a new digital tool which supports under-represented video games developers to bring new games to market
- number of user engagements with this tool over the award term
- evidence of a number of underrepresented video games developers progressing their independent games projects further as a result of engaging with this innovation
- evidence of this project generating further insights about representation and barriers to access within the UK video games sector
4. Check if you’re eligible
Applicants must be legally constituted, not-for-profit organisations centrally managed in the UK. This includes:
- community interest companies registered at Companies House
- UK charities or trusts registered with the relevant charity commission including charitable arms of large organisations
- UK combined or local authorities or statutory bodies
- UK universities, colleges and independent research organisations
Partnerships of more than one organisation are eligible to apply, including partnerships of “for-profit” and “not-for-profit” organisations, so long as the lead partner is “not-for-profit”. The lead partner will need to submit the application to the BFI and would be the party to a funding agreement and direct recipient of the award if the application is successful.
In order to be eligible for funding, applicants must also submit a letter of support from the lead organisation’s CEO or a Senior Executive member alongside their application, to demonstrate organisational buy in for this work at a leadership level.
When you’re ineligible
You are not eligible to apply for to this fund if you:
- are an individual
- are not based in the UK
- do not meet the eligibility criteria outlined above
Get in touch with the team if you’re unsure whether you are eligible to apply to this fund by emailing innovationchallengefund@bfi.org.uk.
5. What you can use the funding for
The Innovation Challenge Fund will usually offer funding as a grant and is generally expected not to have an effect on competition or investment within the UK or between UK and another territory. However, if the project is expected to result in a financial gain for the applicant, then to comply with UK subsidy legislation, there may be additional conditions attached to the offer of funding. This may include potentially providing the award as a recoupable grant repayable from such gains. We also may request further information at application stage to determine whether subsidy is present and what our approach needs to be to ensure compliance with UK legislation.
You can use the funding to cover costs including:
- software development
- hiring staff to deliver the work
- partnership development
- coverage of some overheads to support the project (e.g. some coverage of existing staff and/or organisational core costs as these apply to the project)
- outreach and training
- the analysis and sharing of learnings with the sector, government and other not-for-profits
- data licensing fees, where necessary
- securing funding for the on-going support of activity (e.g. hiring a fundraiser)
- accessibility provision for project staff or participants
- increasing the environmental sustainability of the challenge.
What you cannot use the fund for
Ineligible costs include:
- a project management fee that does not reflect costs directly associated with delivery of the programme
- core costs for day to day running of your organisation not associated with the activity
- flights within or between England, Scotland and Wales, or international flights
- costs relating to an extension of ongoing work
- capital expenditure (building costs and the purchase of equipment)
- filmmaking projects and/or workshops or other ‘above the line’ training or project development
- activity that is already specifically supported by another source of funding, including by other BFI funding provided by a different fund or BFI delegate partner – please contact us if you are unsure whether this applies to you
- proposals that focus on other art-forms such as literature, dance on film, poetry film, opera or artists’ moving image
- cost incurred prior to an offer of funding from BFI
- prize funding of any kind
- alcohol, parties or similar events
This list is not exhaustive and we may inform you that other types of activity within your application cannot be supported by a BFI award, or request that you amend specific lines and allocations.
If you’re registered for VAT, your figures should not include VAT that you can claim back. If you’re not registered for VAT, or you’re registered for VAT but cannot fully recover the VAT you incur on costs, your figures should include irrecoverable VAT. Grants we make are ‘outside the scope’ of VAT and should be listed in your accounts as a grant and not, for example, as a fee for any services supplied to the BFI. You should get financial advice from your own accountant or the relevant tax office.
BFI National Lottery funding is project-based, time-limited funding, and as such, there should be no expectation of ongoing support beyond the term of any awards made. Funds are not intended to substitute or replace existing funding or income that would otherwise be available, or to fund activity at the same scale that can go ahead without an award. National Lottery funds can only be awarded to applicants who demonstrate need and a clear public benefit from the activity being funded.
Partnership funding
As this fund seeks to support innovation that will not attract commercial or other public finance, we recognise it will be challenging for applicants to raise partnership funding to include in their budgets. We therefore do not require a minimum level of partnership funding from applicants.
If you’ve secured, or intend to secure, cash or in-kind resources to contribute to the challenge, you’ll need to include these in your application budget. Any such partnership funding required to meet budgeted costs will need to be secured in advance of payment of any award from BFI and before the proposed delivery start date.
6. How to apply
You need to create an account or have an existing account on our grant website to make your application online. You can save your application and return to it later.
As part of the application, you will be asked to select which challenge call you are responding to. If you would like to respond to both calls, you will need to fill out a separate application for each proposal.
Make sure you complete all the sections as incomplete forms will be automatically ineligible.
Information you’ll need to provide
As part of the application form, we will ask you for:
- organisation and contact details
- a project overview including the proposed innovation in response to the challenge call
- detail of any project partners and/or partnership funding
- an outline of the lead applicant and partners’ relevant experience, skills and network to deliver this proposal
- a dissemination plan for learnings from your project, including any resources to be developed
- the anticipated benefits of the innovation
- a description of the risks you foresee relating to your activity and how you will mitigate these
- a plan for the legacy of the work – how will its benefits be sustained after BFI National Lottery funding has ended?
- how your project meets our principle of equity, diversity and inclusion through responding to the BFI Diversity Standards
- how your project meets our other principles of UK-wide and environmental sustainability.
Documents you’ll need to provide
At the end of the application form you will be asked to attach:
- a detailed budget for the challenge applied for, in Excel format
- a full activity plan, outlining the delivery phases of your project, including dates for a demonstration of the innovation to key stakeholders including the BFI / user testing, and public launch
- a letter of support from the CEO or a Senior Executive member of the lead applicant’s organisation
- if you are applying as part of a consortia: please attach an in-principle partnership agreement signed by each organisation in the consortia
- the lead partner’s last set of independently certified / audited accounts
- if more than 12 months has passed since the year-end covered in the lead partner’s certified accounts, please additionally provide draft accounts for the intervening auditable period as approved by your Board (including both income and expenditure reporting and a balance sheet)
Equality monitoring
You’ll be asked to complete an equality monitoring form when you submit your application. The form asks for demographic information on the staff working on your project at the lead partner organisation. The data that you submit on this form will be confidential and anonymous and not seen by the staff assessing your application. We will not be able to put forward your application for assessment until you have completed the equality monitoring form.
If you have any questions when completing the application form, please contact us at innovationchallengefund@bfi.org.uk. We welcome your feedback on the application process and how we might improve it.
7. What happens after you apply
Following the closing date for applications:
- You will get confirmation we received your application within 1-2 working days.
- If your application is ineligible, we will email to tell you we will not be able to consider it. We may enable you to fix a mistake if this is the only reason the application is ineligible.
- We will review your application and request any additional information we may need within 6 weeks.
- Interviews will be held for selected applicant(s) within 10 weeks
- You’ll get a decision within 12 weeks.
During assessment, we may write to you or request to meet with you to obtain more information about your application. If we need additional information from you, it may take us longer than the timeframes shown above to reach a decision on your application.
How your application is assessed
Your application will be assessed by the Innovation Challenge Fund Manager in consultation with colleagues from the wider BFI Research and Insight team or other departments. We may also share your application with one or more external consultants to help us assess it. External consultants will be required to maintain confidentiality regarding the contents of your application and agree not to retain application materials after their review.
When assessing applications, we consider the extent to which they demonstrate:
- a clear approach to tackle the challenge outlined
- that they are appropriate for innovation funding (this Fund will not support any activity that could be seen as business-as-usual)
- a well-designed proposal which is robustly evidenced
- a high potential for impact
- the potential to generate significant learning and insight which will be of use to the UK video games sector
- a clear legacy plan for this work
- that the applicant and partners have the relevant experience, skills and network to deliver the proposal
- a clear understanding of potential risks and plans to mitigate these
- a clear plan for working with the BFI on your innovation
- a clear and feasible delivery plan
- a realistic budget which represents good value for money
- the extent to which the principles of equity, diversity and inclusion and environmental sustainability are reflected within delivery plans
- where your activity will be carried out and where geographically the benefits of the project are likely to occur – applications will be strengthened if they can demonstrate that their partnerships and beneficiaries will be UK-wide
- the need for National Lottery funding
We may also take into account how you have managed any previous BFI awards.
Lottery Finance Committee consideration
Following assessment of each application, funding recommendations will be made to the BFI Lottery Finance Committee. This is the final stage of the funding decision process. We undertake due diligence assessments of the applications we are recommending to our decision-making committee for funding. As part of this, before submitting an application to the Committee, we will request the bank details of the lead applicant.
We will also request the personal address and date of birth of the CEO or Managing Director of the organisation applying. Please note that our request for this information is not an indication or confirmation of funding and you will be informed separately of the funding decision on your application. We will use this data to run an identity check. Please note that this is not a credit check and will not affect the ability of the CEO or Managing Director to receive credit from other organisations. We will be unable to submit your application to our decision-making committee until we have received your completed form.
All applicants will be informed in writing of the decision on their application. If your application is declined, all supporting materials will be deleted from your submission in line with our record retention policy.
8. Getting a decision
If you’re successful
You’ll receive a written offer of funding and you’ll need to sign this and return it to the BFI within 28 days.
Your offer of funding will set out details of how you’ll receive the funding, how to use it and how we expect you to report to us. Read section eight below to find out what you will have to do if you are offered an award.
If you’re unsuccessful
We may have turned down your application because we determined that the proposal:
- did not closely meet the challenge for this funding round
- did not fit our funding objectives and outcomes
- did not demonstrate a strong enough commitment to one or more of the following principles: equity, diversity and inclusion (EDI); environmental sustainability; UK-wide
- was too ambitious for the budget, or did not demonstrate strong value for money
- was under-developed or lacking in detail around project content, staffing, risk management etc.
- did not demonstrate enough relevant experience
- did not demonstrate sufficient need for National Lottery support and could be financed by other means
- did not sufficiently respond to the BFI Diversity Standards
It is not possible to resubmit an application to the Innovation Challenge Fund.
Feedback on an unsuccessful application
If requested, we will endeavour to provide feedback either in writing or via a phone or video call. As a small team we will prioritise those organisations where we asked for additional information or an interview during the assessment process.
9. Conditions of funding
If you are offered an award from us, in addition to the General Conditions of National Lottery Funding, you will be required to deliver the funded project in accordance with the requirements set out in these guidelines and with the contents of your application (in its final form approved by the BFI) including as follows:
- The duration or term of each funding agreement will be based on the requirements of your application but will be no more than 24 months from the date of issue. Progress will be measured based on submission by you of 8-weekly progress reports, dates for the receipt of which will be matched to cashflow of instalments of the award. Each report will need to include a narrative update that includes detail on any changes to plans in comparison to those previously approved by BFI; update on KPIs; and cost report against budget.
- You will be required to work collaboratively with relevant BFI departments and partners and maintain an open dialogue during the term of your award, updating the BFI of any changes to your project in comparison with your plans at application stage. We may ask you for a meeting at any point during delivery to review progress and, if we request it, you will be required to facilitate access for a BFI representative to observe or where appropriate take part in the funded activity.
- You will be required to write and agree to the publication by BFI of a final challenge report (see deliverables above). This should be written in the spirit of the greatest transparency possible, to enable other organisations to utilise and further develop your work.
- Any outputs produced by the project (for example a digital database, toolkit or online platform) will be owned and managed by you. Once launched, these must be maintained for at least the remaining award term, and legacy planning should ensure their continued use and availability for an additional 24 months beyond the expiry of the term and for no further funding from BFI. If you are unable to sustain this, the ownership of or a licence in all such digital or other tangible assets will be transferred to BFI so that it can explore measures to ensure future public availability.
- You will be required to work with Julie’s Bicycle and, where applicable, BAFTA albert to assess the environmental impact of your project and identify sustainability actions to take during delivery. You will be required to calculate the carbon footprint of your funded activity using Julie’s Bicycle’s carbon calculator or an equivalent tool.
- You will be required to take part in evaluation of the Fund, carried out by a third-party contractor appointed by the BFI. This is likely to take place between 2024-26 and may be revisited during later years so you should ensure to retain all data relating to your programme, its participants and its impact until the end of the BFI Screen Culture Strategy in March 2033.
- Where you have included unsecured partnership funding within your budget, you will need to provide updates on securing this finance to the BFI (normally as part of your performance reporting but, where such partnership funding is intrinsic to delivery of the project, as a pre-condition to the funding agreement). The BFI may elect to withhold or withdraw your award if you are unable to secure a level of partnership funding required to deliver the project as planned, or require that you submit revised plans and budget showing how the project could be delivered without the planned partnership funding.
- You will be required to gain BFI approval for any marketing or related materials for your activity, in line with branding guidelines that the BFI will provide you with.
- Where applicable, you will need to adopt safeguarding provisions for protecting children and vulnerable adults and ensure that data on all participants in and beneficiaries of the Innovation Challenge Fund can be shared with BFI in compliance with data protection legislation.