NSF SBIR program and I-CorpsPresentation Transcript
The National Science Foundation Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR) Programs Errol Arkilic [email_address] Office of Integrative Activities Division of Industrial Innovation and Partnerships
Sources of Funding for Innovation 12/22/11 Valhalla Confidential Venture Capital Angels / Friends & Family Private Equity Company Profits Non-profits / Grants The Government Commercial Banks
Small Business Investors Accelerate Innovation Innovation Spectrum ENG NSF GOALI I/UCRC PFI ERC NSF STTR NSF SBIR Industry Valley of Death -----------II-R---- ------II-B--------------------- ------------- Supplements Resources Available ($) Discovery Development Commercialization Level of Development Unbridgable Gulf of Death I-Corps
The design, invention, development and/or implementation of new or altered products, services, processes, systems, organizational structures, or business models for the purpose of creating new value for customers and financial returns for the firm Innovation* *Innovation Measurement A Report to the Secretary of Commerce January 2008
To promote the progress of science and engineering; to advance the national health, prosperity, and welfare; and to secure the national defense
What is your Enterprise Risk Profile? (are you NSF SBIR material) Venture Capital Threshold Angel Capital Threshold Economic Development Funds Threshold NSF SBIR/STTR Threshold Technology Risk Market Risk People Risk Finance Risk Friends, Family (and Fools) Threshold Senior Debt Threshold
SBIR Program Information
NSF ~$120 million at NSF (for Phase I, Phase II, Phase IIB combined)
Federal ~$2.6 billion total in FY11 (11 agencies)
SBIR = 2.5% and STTR = 0.3% of NSF budget
Applicant must be a for-profit Small Business
(500 or fewer employees) located in the U.S.
At least 51% U.S.- owned by individuals and independently operated
PI’s primary employment is with small business during the project
Must be high-payback innovations involving high risk* and commercial potential
Demonstrate strategic partnerships with research collaborators, customers and equity investors
We do NOT fund
Evolutionary optimization of existing products and processes or modifications to broaden the scope of an existing product, process or application
Analytical or “market” studies of technologies
* From the market viewpoint
NSF SBIR Program
$120 M/year in chunks of $150K (Phase I) and $500K (Phase II)
Biotech and Chemical Technologies – 3 Program Managers
Information and Communications Technology – 3 Program Managers
Nano/Advanced Materials and Manufacturing – 4 Program Managers
Education Applications – 1 Program Manager
Placing bets on high-risk/high-impact innovation research
NOT Basic Research
NOT Equity Investment
NOT contract R&D
Solicitation released twice per year (in Sept. and March)
Two due dates: Dec. and June
All proposals are externally-reviewed
Reviewers: Equity Investors, Industrial, Academic
Reviews: Technology and Commercial reviewers
Dialog encouraged throughout the process
Decision made three-four months after proposal receipt
Cash in the bank 6 mos after proposal receipt
After the cash, immersion in NSF network
Review Criteria (Technical)
A sound approach to establish technical & commercial feasibility
Technical Team qualifications
Sufficient access to resources
Review Criteria (Commercial)
What may be the commercial and societal benefits of the proposed activity?
If the benefit is primarily commercial, does the potential impact warrant significant NSF support?
Does the business team possess the relevant skills to commercialize the proposed innovation?
In what business skill areas is the team lacking and how do they plan to fill these gaps?
Has the proposing firm successfully commercialized SBIR/STTR-supported technology where prior awards have been made? (Or, has the firm been successful at commercializing technology that has not received SBIR/STTR support?)
Evaluate the competitive advantage of this technology vs. alternate technologies that can meet the same market needs.
Does the proposal lead to enabling technologies (instrumentation, software, etc.) for further innovation?
How well is the proposed activity positioned to attract further funding from non-SBIR sources once the SBIR project ends?