Alternative Funding: Bootstrapping to Survival and SuccessGovernment Funding SourcesPresented ByNick Lawrence

…AgendaAs a result of this presentation, you will learn…The THREE PRIMARY GOVERNMENT PROGRAMS and the SPECIFIC AGENCIES that provide financial aid to technology-driven small businessesWhere to go to receive the ADDITIONAL INFORMATION needed to participate in these federally-funded programsThe ADVANTAGES of participating in these federally-funded programs

To develop advanced technology that meet general requirements defined in periodic agency solicitations Provides up to $850,000 in early-stage R&D funding directly To small companies (or individual entrepreneurs who form a company) To small companies working cooperatively with researchers at universities and other research institutions Provides up to $600,000 in early-stage R&D funding …3 Primary Programs Company must attract outside investors Fast Track offers an opportunity to obtain a match of between $1 and $4 in DoD SBIR/STTR funds for every invested $1 Provides a higher probability of SBIR/STTR award than standard award

To develop advanced technology that meet general requirements defined in periodic agency solicitations

Provides up to $850,000 in early-stage R&D funding directly

To small companies (or individual entrepreneurs who form a company)

To small companies working cooperatively with researchers at universities and other research institutions

Provides up to $600,000 in early-stage R&D funding

Company must attract outside investors

Fast Track offers an opportunity to obtain a match of between $1 and $4 in DoD SBIR/STTR funds for every invested $1

Provides a higher probability of SBIR/STTR award than standard award

Related Requirement?Read Agency SolicitationCheck Other Fund SourcesSBIR FundingNoYesDiscuss w/ Agency ContactSubmitProposal…SBIR Program StructurePhase I (Concept Development) Awards of up to $100,000 for approximately 6 months support exploration of the technical merit or feasibility of an idea or technologyPhase II (Prototype Development) Awards of up to $750,000, for as many as 2 years. During this phase, the R&D work is performed and the developer evaluates commercialization potential. Only Phase I award winners are considered for Phase IIPhase III (Commercialization) No SBIR funds support this phase. The small business must find funding in the private sector or other non-SBIR federal agency funding

Phase I (Concept Development) Awards of up to $100,000 for approximately 6 months support exploration of the technical merit or feasibility of an idea or technology

Phase II (Prototype Development) Awards of up to $750,000, for as many as 2 years. During this phase, the R&D work is performed and the developer evaluates commercialization potential. Only Phase I award winners are considered for Phase II

Phase III (Commercialization) No SBIR funds support this phase. The small business must find funding in the private sector or other non-SBIR federal agency funding

…STTR Program Structure Phase I(Concept Development) Awards of up to $100,000 for approximately 1 year fund the exploration of the scientific, technical, and commercial feasibility of an idea or technology Phase II(Prototype Development) Awards of up to $500,000, for as long as 2 years, expand Phase I results. During this period, the R&D work is performed and the developer begins to consider commercial potential. Only Phase I award winners are considered for Phase II Phase III(Commercialization) No STTR funds support this phase. The small business must find funding in the private sector or other non-STTR federal agency funding

Phase I(Concept Development) Awards of up to $100,000 for approximately 1 year fund the exploration of the scientific, technical, and commercial feasibility of an idea or technology

Phase II(Prototype Development) Awards of up to $500,000, for as long as 2 years, expand Phase I results. During this period, the R&D work is performed and the developer begins to consider commercial potential. Only Phase I award winners are considered for Phase II

Phase III(Commercialization) No STTR funds support this phase. The small business must find funding in the private sector or other non-STTR federal agency funding

Phase 1 SBIR or STTR Contract AwardOutside Investment?SubmitStandard Phase 2 ProposalNoYesSubmitFAST Track, Phase 2 ProposalDiscuss w/ Agency Contact…FAST Track Program Structure Available to Phase 1 awardees that are able to attract outside investors Receive interim funding of $30,000 to $50,000 between phases I and II Be evaluated for phase II award under an expedited process Prevents any significant gaps in funding between phases I and II

Available to Phase 1 awardees that are able to attract outside investors

Receive interim funding of $30,000 to $50,000 between phases I and II

Be evaluated for phase II award under an expedited process

Prevents any significant gaps in funding between phases I and II

…Program SchedulesSBIR/STTR Solicitation Schedules can be found at:Web Site: http://www.dodsbir.net/

…Primary Sources of Defense-Related FundsFor additional information on defense related sources of funds :http://www.dtic.mil/ Central facility for the collection and dissemination of scientific and technical information for the Department of Defensehttp://www.fbodaily.comFedBizOpps (FBO) is the official listing of all Federal government contracting opportunities and awards over $25,000

…Primary Sources of Non-Defense Funds

For additional Information on non-defense related sources of funds:http://www.science.gov/ Science.gov is a gateway to authoritative selected science information provided by U.S. Government agencies, including research and development results (search topics & databases)http://www.pnl.gov/edo/sbir.stm A free service that provides bi-weekly notification of SBIR/STTR news and information

… SBIR & STTR Advantages There is a lot of government money available for technology development!! Companies retain the intellectual property rights to technologies they develop under these programs SBIR/STTR is for small businesses only (“Broad Agency Announcements” accept proposals from businesses of all sizes) While meeting contract requirements, Companies quickly develop critical management capability formal planning & scheduling management process financial control project/task tracking Companies have the opportunity to be mentored by highly qualified government technical representativesSBIR / STTR…the best kept secret for sources of funds and other assistance for small business

There is a lot of government money available for technology development!!

Companies retain the intellectual property rights to technologies they develop under these programs

SBIR/STTR is for small businesses only (“Broad Agency Announcements” accept proposals from businesses of all sizes)

While meeting contract requirements, Companies quickly develop critical management capability

formal planning & scheduling

management process

financial control

project/task tracking

Companies have the opportunity to be mentored by highly qualified government technical representatives