MusicFutures Music Innovation Fund

MusicFutures is launching the first round of its Innovation Fund to support small and medium-sized enterprises (SMEs) developing the next generation of inclusive and sustainable music technologies, experiences, tools, and business models.

We are looking to support ambitious, forward-thinking projects across the Liverpool City Region (LCR) that have the potential to transform the music sector. Your project can be at any stage.

Successful applicants can receive up to £20,000 in funding, plus additional tailored support, to accelerate R&D, prototype development, testing, and deployment of innovative solutions.

Projects must be fully defined and ready to start by October 2026.

Eligible applicants include:
– Registered SMEs or CICs

Lead Applicants must also be:
– Based in, or have significant presence in, the Liverpool City Region.
– Proposing a music innovation with a clear route to real-world use, commercialisation, and sector impact.

Lead Organisation Requirements

The lead organisation must:
– Be a UK-registered business.
– Be Liverpool City Region–based or have significant operations located in the region.
– Fall within Minimal Financial Assistance (MFA) limits (see Appendix 1).
– Be able to provide required co-investment.

Not eligible to lead:
– Publicly funded organisations, non-profits without commercial focus, charities, schools, colleges, or universities cannot lead applications. However, they may participate as partners if the lead organisation is an eligible company.
– A company may lead only one project, but can partner on other applications.

What we can fund

We are seeking projects that push boundaries in how music is created, performed, distributed, monetised, or experienced; with intention to also impact on a) improving environmental sustainability and/or b) increasing diversity, inclusivity and equality in the sector.

This includes (but is not limited to):

New Business Models & Platforms
– Fan engagement or community platforms
– New ways of working with data
– New monetisation models (co-ops, creator economy tools, micropayments)
– Innovations supporting artist livelihoods and fairer value flows

New Production Technologies
– Realtime, interactive and virtual production for music content
– Spatial audio, adaptive music, immersive experiences
– Workflow automation and next-gen music production pipelines

Immersive & Interactive Experiences
– New immersive formats for live and digital music
– Multisensory installations, interactive concerts
– Location-based media and music-focused digital twins

Tools and Innovations for Live, Studio, or Education
– New hardware/software for recording or performance
– Innovations and tools supporting music education, skills, wellbeing and workforce development
– Accessibility innovations for artists, music professionals and audiences.
– Human Centred AI-native tools for artists, performers, and producers
– Generative audio/video workflows, creative agents, recommendation systems
– Tools supporting rights, authenticity, provenance, ethics, or transparency

IP, Rights and Metadata
– Improving the way that metadata is created, managed, and used
– Tools supporting better ways of managing rights, authenticity, provenance, ethics, or transparency

If it pushes the future of music forward, it is in scope.

What We Can’t Fund

This funding is to support Innovation in music, unfortunately we cannot fund work that:

– Is production only (i.e. recording an album, doing a one off show, content creation, marketing and advertising, day to day business operation costs). Where there is no clear R&D, innovation or development proposed.
– Travel/touring costs where travel/touring is the main purpose of the spend. However, you are allowed travel as part of your R&D/Innovation activity.
– Is not clearly of significant benefit to the music sector. Music industry innovation must be in the centre of the proposition.
– Events and one off experiences. Your innovation needs to demonstrate potential for scalability and sustainability beyond the life of the funding.
– Music Education/Support/Skills/Community programmes, however we are encouraging applications that are education centred i.e. leading to new products and services.

Funding Available
– Up to £20,000 grant funding per project
– Additional business support including mentoring, expertise, ecosystem access & IP clinic
– Projects must be delivered by April 2027

Eligible Costs
– Staff time (please provide actual costs)
– Subcontractor / collaborator costs
– Travel, subsistence and accommodation
– Software / equipment (limited to 20% of budget)
– Prototyping and software development
– Testing, evaluation and user/UX research
– Space or venue hire (where relevant)

Co-investment Requirements
– We expect to see match funding, in kind funding from your organisation or partners.
– Projects must provide at least 1:1 co-investment and in-kind match funding at application stage.

Cost Requirements
Eligible costs must:
– Comply with UKRI funding rules
– Demonstrate value for money
– Project costs should include VAT (if applicable)
– Capital/Equipment Expenditure, i.e. the purchasing of equipment and capital assets, should not exceed 20%,
– Outsourcing/Subcontract limitations: Max 30% subcontracting outside of region

Payment Schedule
Payments will be made as:
– 60% at project start
– 30% at milestone review
– 10% at project end, final delivery review

Grant requests must:
– Not exceed £20,000
– Include evidence of match funding

– 12th May 2026 – Call opens

– 26th May 2026, 1pm – Funding Call Q&A Webinar

– 19th June 2026 – Call Deadline

– June/July 2026 – Assessment Period

– September 2026 – Decisions announced

– October 1^st 2026 – 31st March 2027 – Project delivery window

All applicants must submit their proposal through the MusicFutures online application form, downloadable on the right hand side.

Applications sent in any other format will not be accepted or assessed.

Applicants submit:

– An online application form
– Optional supporting materials such as pitch decks etc.

Application Submission Portal

Information sessions and briefings will be announced via MusicFutures media channels.

Assessment Process
– Eligibility Check
– Assessment by MusicFutures and independent sector specialists
– Clarification stage (if required, we may seek more information)
– Funding award

Important: Applications that do not comply with the rules or submit incomplete applications will not be assessed.

Support for Applicants
Equality, Diversity, and Inclusion (EDI) is central to the MusicFutures programme. We aim to ensure applying and participating is accessible and inclusive.

Reasonable adjustments may include:
– Alternative submission formats
– Video or audio responses instead of written answers
– Accessible webinars with written/visual materials

Individual requests for adjustments will be supported wherever possible and equitable.