Future of Fundraising with Tim Barnes

Welcome back to Founder Mode!

Most founders believe that fundraising involves pitching to VCs and giving up equity. But there’s another path that’s gaining traction: non-dilutive funding, and AI is helping unlock it.

In this episode, Jason and I talked with Tim Barnes, founder of Scout. His platform helps startups get grants and other non-dilutive funds. It uses automation, matching tools, and AI.

We broke down what’s changing, what’s working, and how founders can fund their ideas without giving away control.

Let’s dive in.

Why Founders Miss Out on Grants

Tim started with a hard truth:

Why? Applying for grants is slow, complex, and painful. It feels easier to pitch VCs and take dilution, even when that leaves founders with a small slice of their company.

But that’s changing. Scout uses AI to simplify the grant process and help startups find, apply, and stay compliant without wasting time.

Grants Are Not Quick Fixes

Tim made this clear: grants take time.

Grants are great for long-term planning, not emergency funding. They often take 6 to 9 months to secure.

Non-dilutive fundraising should go hand in hand with biz dev and recruiting. The good news? With the right tools, it doesn’t have to take up your whole day.

AI Is Changing the Game

Scout now automates major parts of the grant process:

• Opportunity discovery
• Proposal writing
• Compliance management
• Matching to specific agencies
• Post-award reporting

They also work with governments to improve the process. Many grant portals are still outdated.

That kind of automation is what makes non-dilutive funding scalable.

It’s All About Packaging and Positioning

A key takeaway was how founders can match funding priorities while staying true to their mission.

Tim explained:

For example:

• Say “energy independence” instead of “climate change.”
• Say “rural health” instead of “urban innovation.”

This aligns your pitch with funding agencies’ needs. You won’t have to compromise on your project.

Real Success Stories and Use Cases

Scout’s team even found out they were eligible for hundreds of grants after testing their own platform. Now they’ve shifted to winning deals with cities like LA, Sacramento, Long Beach, and the state of Louisiana.

That’s the big unlock: You don’t have to be a nonprofit. You don’t have to be an academic. You just need a tool to surface the right fit.

As I said in the episode:

My 5 Key Takeaways

1. Grants are underused, especially in capital-heavy industries

Founders often ignore them because the process seems too hard. But the upside is real.

2. AI automates the hard parts

From writing to compliance to government-side review — AI can do most of the heavy lifting.

3. Timing matters

Don’t use grants to “save” your runway. Start early and treat it as an ongoing process.

4. Language and positioning are critical

Align your application with today’s funding priorities. Keep your mission strong.

5. Use tools like Scout’s Fit Check

It instantly tells you if your startup has high-fit matches. Don’t waste time if you’re not a fit.

Final Thoughts

Non-dilutive capital isn’t new. But founders finally have tools that make it usable.

As Tim said:

If you’re only chasing VC money, you’re leaving value on the table. And if you’re chasing every check without a plan, you risk losing your way.

The smartest founders are doing both — raising with purpose and keeping equity when they can.

As I put it in the show:

We’re still early, but this playbook is one worth copying.

🎧 Listen to Episode 36 here:

Future of Fundraising with T... Dec 11 · Founder Mode 24:48   ​

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