The company uses the performing arts to encourage communication, and laughter through its Clowndoctors project for children and Elderflowers for people with dementia.
The multi-year grant from the Paul Hamlyn Foundation (PHF) will fund founder Magdalena Schamberger to research new ways of working with dementia patients. Hearts and Minds will test how the work might take place in community settings , and involve family members more.
The cash is one of seven awards made under the PHF's Breakthrough Fund for cultural entrepreneurs.
PHF trustee James Lingwood said: "The panel met some inspiring individuals and groups with potentially game-changing ideas."