3 ways the government can give your startup literally free money
When we first started Frich, no one told us how many free programs the federal and state governments offer to founders.
We all know how brutal fundraising can be. But many of us miss that there are multiple programs that can give back up to $500K+ per year. All you have to do is apply.
Here are the top 3 that actually worked for us ⬇️
1️⃣ R&D Credits: we just got $44,695 back for submitting a quick form
If you’re building any kind of product, the government can refund you up to $500K per year for money you’ve already spent on:
- Developers
- Engineers
- Web designers
- Product & technical contractors
The credit gets applied directly towards your payroll taxes, meaning it reduces what you owe in taxes going forward.
<div class="frich-tip">You can claim R&D credits retroactively for up to 3 years - we didn’t know about this at first and almost missed out!</div>
We tried doing this ourselves and it’s not really worth the headache. The easiest way we’ve found is through Pilot where you can get set up in just a few minutes.
Investor money matching: NY offered to match $250K
Raising money is so hard but what if you could double the money you raised?
In New York, there’s a program where the state will match private investment for early-stage startups (we used this one). Here's how to find one in your state as well :
- Google: “[Your State] seed matching fund”
- Or “[Your State] startup investment matching program”
- Check your state’s Economic Development or Innovation department site
These programs are wildly under-marketed, which means they’re often not very competitive. It’s less about “winning” and more about knowing they exist and applying.
<div class="frich-tip">Many matching programs only count investments made within 60–90 days, so apply as early as possible (ideally, while you’re still fundraising).</div>
Grants: non-dilutive, actually free money
Every year there are dozens of grants available for early-stage founders (especially for minority founders) that no one applies for.
We’ve personally collected multiple grants over the years. So here’s an updated list of 2026 grants that you can apply to as well!
Alternatively you can search for grants in your state:
- Google: “[Your State] small business grants”
- Google: “[Your State] economic development grants”
If you have questions or want us to share more resources like this, just reach out- I’d be happy to help!
Good luck & go get it!
Katrin,
Co-founder of Frich
