Securing VC funding often turns out to be a major hurdle for healthcare startups. Complex regulatory environments, market misconceptions, investor biases, and other factors make VC funding a scarce commodity for startups focused on health. Luckily, VC funding is not the sole opportunity to give your startup a boost. Grants can provide a crucial lifeline for health tech startups by offering non-dilutive funding, networking opportunities, and access to a community of domain experts.
Over the last 15 years, our health tech development company has helped over 100 startups bring their products to market. As part of our product development, we also offer strategic funding guidance, where we help our clients identify the right non-dilutive funding opportunities that match their products. In this blog post, we've curated the top 11 grants for healthcare startups that can help your startup get a much-needed infusion of capital.
AHRQ Digital Healthcare Solutions (R21/R33)
Grant type: Federal grant — the Agency for Healthcare Research and Quality (AHRQ).
Grant size: R21 Phase — up to $275,000/2 years, R33 Phase — up to $1,000,000/3 years, with the maximum project period of 5 years total.
Qualification: Must be a U.S.-based public or non-profit institution; for-profit organizations can participate as subawardees or consortium partners.
How to apply: Submit an application form using one of the available submission options, including ASSIST, institutional system-to-system solution, or Grants.gov Workspace (single-project only).
Organizations seeking support for the early and conceptual stages of their projects can apply for the AHRQ Digital Healthcare Solutions (R21/R33) grant, given to applicants who test digital healthcare interventions with the potential to improve the quality of care and healthcare services delivery at the point of care. Under this grant, startups are provided up to 2 years of R21 support for initial developmental activities and up to 3 years of R33 support for expanded activities based on the progress achieved.
For startups, AHRQ Digital Healthcare Solutions (R21/R33) is not only a smart way to raise funding but also a valuable opportunity to support research and demonstrate the effectiveness of their digital health solutions. Through this grant, companies can also team up with academic institutions, healthcare providers, and other healthcare players.
NSF SBIR/STTR Digital Health Topic
Grant type: Federal grant — the National Science Foundation (NSF).
Grant size: The maximum total Phase I award amount is $305,000; for Phase II, it is $1,250,000.
Qualification: Must be a U.S.-based small business (fewer than 500 employees) with at least 50% of the company's equity owned by U.S. citizens or permanent residents.
How to apply: Submit a project pitch to verify compliance with NSF SBIR/STTR; if selected, submit a full proposal through the NSF grants.gov portal.
America's Seed Fund, powered by the National Science Foundation (NSF SBIR/STTR), backs up early-stage healthcare startups across almost all areas of technology and market sectors, helping them transition from the lab to the market. Clinical trials and Schedule I controlled substances are the only exceptions. Each year, this grant helps about 400 U.S. startups accelerate the development of innovative medical devices, AI algorithms, applications, and other tech advancements with commercial and societal impact.
Selected startups receive up to $305,000 for research and development and get 6 to 18 months to develop a prototype or proof-of-concept. After that, startups can apply for Phase II and get up to $1,250,000 to advance their tech product in 24 months. In some cases, companies can also receive additional funding of up to $500,000.
The eligibility criteria for the NSF SBIR/STTR Digital Health Topic are straightforward: U.S.-based startups with fewer than 500 employees and at least 50% U.S. ownership can apply for the grant. However, the NSF doesn't fund companies that are majority-owned by venture capital.
NIH Smart Health Research Grants
Grant type: Federal grant — National Institutes of Health (NIH) and the National Science Foundation (NSF).
Grant size: Up to $1,200,000 over up to 4 years; the exact amount is based on scientific merit and the availability of funds.
Qualification: Institutions of Higher Education and non-profit organizations associated with educational or research activities.
How to apply: Submit your research proposal along with all necessary documentation through the Research.gov or Grants.gov portal.
NIH Smart Health Research Grants, supported by the National Institutes of Health (NIH) and the National Science Foundation (NSF), provide financial assistance to high-risk, high-reward research in the realm of biomedical and public health. This grant funding aims to support research projects that span two or more scientific and engineering disciplines, such as engineering, mathematical sciences, social, behavioral, or economic sciences, and that address a key health problem.
DHI Digital Health Innovations Seed Grant Program
Grant type: Institutional grant — University of Utah Health Sciences.
Grant size: Up to $50,000 per pilot award, with a potential additional $25,000 for projects that engage the Software Development & Systems Design Core (SD2C) as a development partner.
Qualification: Specific to projects affiliated with the university; collaboration with healthcare startups and external companies is allowed.
How to apply: Fill out and submit the Inspiring Digital Health Innovations form.
The DHI Digital Health Innovations Seed Grant Program catalyzes new digital health research collaborations at the University of Utah Health by funding projects that generate the preliminary data needed for larger competitive grant applications or commercialization. Priority areas for 2026 include: development and investigation of new digital health tools for clinicians, patients, and populations; use of digital health tools for personalized, value-driven, patient-centered care; integration of patient-generated health data with clinical data to improve outcomes; and novel applications of gaming techniques to digital health research questions.
One eligibility constraint worth noting for AI-focused projects: proposals involving AI or data science components — such as prediction models or data interoperability work — are considered only if at least one specific aim covers the design or evaluation of the technology by clinical end users (e.g., user testing or a pilot implementation with clinicians or patients).
Funded projects often serve as a launchpad for larger-scale grant applications, including R01, R18, U01, U24, and P grants. Although the program is specific to the university community, healthcare startups can collaborate with university-affiliated PIs to jointly pursue seed-funded projects.
Stanford Center for Digital Health Pilot Grants
Grant type: Institutional grant — Stanford University.
Grant size: $50,000/awardee.
Qualification: Specific to projects affiliated with the university.
How to apply: Submit a research proposal and the required documents via Stanford's designated portal.
Stanford offers a wealth of institutional funding opportunities to propel early-stage digital health projects, chief among them being the Pilot Grants Award program. The grant props up a wide range of digital health projects, but its priority areas vary by year and include projects related to AI improving mental health and health for all, cardiometabolic health, and technology for health at home.
The grant size, priority areas, and specific requirements differ by the program. Traditionally, the program strongly encourages collaborative, multi-PI applications that build on the expertise of at least two lead investigators from different Stanford departments or schools.
Digital Health Hub Foundation Grants
Grant type: Private non-profit foundation grant.
Grant size: Varies. Previous award cycles have included up to $500,000 plus investor access and community membership.
Qualification: Rising Star track: companies that secured seed or series A funding. Best in Class track: post-series A companies.
How to apply: Submit an application through the designated online portal.
Digital Health Hub Foundation Grants recognize and reward the most impactful and disruptive health tech companies across prevention, care delivery, affordability, equity, and longevity. Those companies that secured a seed or series A round are eligible for the ‘Rising Star' category, while those post-series A compete in the ‘Best in Class' track. The Digital Health Hub Foundation often uses HLTH, a major health tech conference, as a key venue to showcase finalists and celebrate winners.
Not only do awardees get their projects funded, but they can also tap into the 30,000-member community of thousands of early-to-late-stage healthcare companies and highly qualified healthcare industry providers, payors, experts, investors, and clinicians.
The Advanced Research Projects Agency for Health (ARPA-H)
Grant type: Funded by a federal research agency under HHS.
Grant size: Varies based on the program.
Qualification: Academic institutions, non‑profits, and for-profits.
How to apply: Submit a solution summary or full proposal via the ARPA-H Solutions Portal.
ARPA-H supports organizations and companies involved in meaningful, high-risk biomedical and health research whose projects can't follow traditional research or commercial paths. In simple terms, ARPA-H awardees are trailblazers working to push the boundaries of modern healthcare in a moonshot style.
If your company is building a game-changing healthtech innovation, especially in areas such as health data infrastructure, AI diagnostics, or preventive health, ARPA-H can be right up your alley.
HRSA (Health Resources and Services Administration) funding programs
Grant type: Funded by a federal research agency under HHS.
Grant size: Varies by program: up to $600,000 for Phase 1 and up to $3,500,000 for Phase 2.
Qualification: Non-profit organizations, educational institutions, state and local governments, and academic health science centers.
How to apply: Submit applications via Grants.gov.
HRSA's mission is to give organizations the tools to develop ideas and projects that have a public-wide impact, whether that's improving access to health care for underserved communities, reducing health disparities, or maximizing care accessibility for all. Essentially, it's a series of grants targeting different healthcare areas, including mental health, telehealth, maternal health, and others.
Although HRSA's funding programs mainly target non-profit organizations, startups can become eligible by collaborating with the latter.
SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) funding programs
Grant type: Federal grants and contracts.
Grant size: Phase I — $323,090 / up to 2 years, Phase II — $2,153,927 / up to 3 years; a waiver is possible.
Qualification: Must be a US-based, for-profit business that operates in the US or directly contributes to the US economy, with up to 500 employees. Ownership requirements vary.
How to apply: Submit applications via Grants.gov.
SBIR and STTR are federal programs that help small business entrepreneurs advance their early-stage research and development projects. Both programs follow a similar timeline that includes Phase I and Phase II stages, with different funding support and solution maturity. Phase I supports proof of concept and feasibility, while Phase II funds R&D projects with proven potential.
Although the grant size is limited, programs can provide additional funding for biomedical innovations that require additional funding to reach the marketplace. As for market areas, SBIR and STTR support different types of R&D projects, including those focused on medical devices, digital health tools, and biotech.
PARATUS Digital Health Accelerator non-dilutive funding
Grant type: Federal grant — the Biomedical Advanced Research and Development Authority (BARDA).
Grant size: From $50,000 to $200,000 per award, disbursed as milestone-based funding over a 6 to 12-week study period.
Qualification: Open globally to startups and university-backed projects with an established proof of concept, evidence of product-market fit, and business model potential. Solutions must align with BARDA's health security mission.
How to apply: Complete the preliminary application through MATTER's portal.
PARATUS is BARDA's dedicated digital health hub, funding proof-of-concept studies for innovations that support preparedness against CBRN threats, pandemic influenza, and emerging infectious diseases. Current areas of interest include wearable biosensors for early disease detection, edge analytics and anomaly-detection tools, interoperable data platforms, digital biomarkers and predictive models, and resilient monitoring solutions for resource-limited settings.
PARATUS program connects funded startups with health system partners at no cost beyond the award budget, along with project management support and mentoring from BARDA subject-matter experts. For a digital health company at the proof-of-concept stage that needs both capital and access to a clinical validation environment, PARATUS covers both.
Peer Reviewed Medical Research Program (PRMRP)
Grant type: Federal grant — U.S. Department of Defense (DoD), Defense Health Agency Research and Development.
Grant size: Varies by award mechanism.
Qualification: Independent investigators at all career levels. Most award mechanisms include a Partnering PI option, under which at least one PI must be either a clinician researcher or an employee of a private industry organization. The primary path for for-profit health tech companies to participate as co-leads rather than subrecipients.
How to apply: Submit a pre-application through eBRAP's portal before the deadline.
The PRMRP funds high-impact biomedical research directly relevant to military health, with FY26 congressional funding covering 52 mandated topic areas. Several map closely to digital health — PTSD, sleep disorders, suicide prevention, maternal mental health, musculoskeletal health, and respiratory health, among others. Projects don't need to be military-specific in their intervention, only in their relevance to military populations.
Elevate your digital product, elevate your funding
While VC funding is the most sought-after by founders, it often comes with dilution of ownership and stringent terms. However, nixing VC dollars doesn't mean a farewell to funding opportunities altogether. Grants offer a lower-risk form of financing that can help you get your project off the ground without giving up equity.
Whatever the funding source, you'll likely need a secret ingredient to get your idea funded — and that ingredient is a well-defined product idea with a measurable impact, a clear business model, and an expert tech development team behind it. Our company can help fill gaps in your product idea and expertise, making your healthcare startup more attractive to investors and grantmakers alike. Schedule a free consultation to discuss your project needs.