SBIR 101:Funding Critical Innovations
SBIR funding is accessible to awide range of innovators • Small US-citizen owned company or   start-up with new IP • Resea...
Grants are an overlooked source ofearly stage funding• Federal SBIR/STTR grants to build and  test innovative new products...
SBIR Innovation Model                     Private Sector Investment/                      Non-SBIR Federal Funds          ...
The SBIR program provides smallbusinesses the opportunity topropose innovative ideas thatmeet federal R&D needs•   Small B...
The STTR program is SBIR’s sisterprogram, encouraging cooperativeR&D between small businessesand research institutions• Sm...
Both SBIR and STTR allow you totest the feasibility of ideas withcommercial potential• Congress has mandated that agencies...
SBIR provides funding for high-riskR&D and enables you to prove yourconcept • First level of investment • Verification of ...
SBIR builds value in your businessfor the owners of your business• Not dilutive like equity investment• No future debt acc...
Funding for SBIR projects differ by agency and solicitation• Phase I---from $70K for proof of concept  (current NSF is $15...
SBIR and STTR fund direct project work in several areas• Exploitation of scientific breakthroughs• Innovative use of emerg...
11 agencies host SBIR programs,and 6 host STTR programs•   Agriculture•   Commerce•   Defense - also STTR•   Education•   ...
To be eligible for SBIR/STTR,companies must be US-owned andindependently operated• For-profit firm with fewer than 500 emp...
To apply, the first step is to identifyall topics that relate to yourcompany’s R&D interests                 www.zyn.com  ...
The second step is to reviewsolicitation information for theopportunities you have selected• Pre-solicitation announcement...
The third step is to contact eachagency to learn why the agency isfunding your topic• Treat each agency as you would treat...
Tactical strategies are necessary tobe competitive – you will need aplan to win•   Have a clear vision of the customer•   ...
You must be prepared to sell thevalue of your idea• An investor is an investor• Evaluate how you fit the funder’s needs• U...
The proposal will require more than‘filling out a form’—write for yourreader!• Proposal quality is key• The text should be...
ITAC SBIR specialists can lead youthrough the SBIR/STTR mazeWe can:• Help you find the right opportunity• Match you with a...
Thank you, and feel free tocontact me with any questions orfor a copy of this presentationColleen GibneyTechnology Project...
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Introduction to sbir program 032510

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How to fund early stage technology ideas

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Introduction to sbir program 032510

  1. 1. SBIR 101:Funding Critical Innovations
  2. 2. SBIR funding is accessible to awide range of innovators • Small US-citizen owned company or start-up with new IP • Researcher* with an applied technology but no funding to create a prototype • Inventor with concept funded out of your own pocket *Restrictions apply
  3. 3. Grants are an overlooked source ofearly stage funding• Federal SBIR/STTR grants to build and test innovative new products• State NYSERDA grants—energy-related• TIP, ARPA-e…
  4. 4. SBIR Innovation Model Private Sector Investment/ Non-SBIR Federal Funds (before/during/after) PHASE III PHASE II Product PHASE I Research Development Feasibility towards to Research Prototype Commercial Market TaxesFederal Investment
  5. 5. The SBIR program provides smallbusinesses the opportunity topropose innovative ideas thatmeet federal R&D needs• Small Business Innovation Research• Highly competitive• Three-phase award system• The Government is your customer for now
  6. 6. The STTR program is SBIR’s sisterprogram, encouraging cooperativeR&D between small businessesand research institutions• Small Business Technology Transfer Program• Works like SBIR, but a research partner is required
  7. 7. Both SBIR and STTR allow you totest the feasibility of ideas withcommercial potential• Congress has mandated that agencies with significant external R&D budgets reserve a percentage for SBIR and STTR• SBIR permits research institution partners• STTR requires research institution partners
  8. 8. SBIR provides funding for high-riskR&D and enables you to prove yourconcept • First level of investment • Verification of your innovative technology • Peer-reviewed • Reduces technological risk for investors (angels/VCs will NOT fund R&D) • Has grown increasingly competitive • Under a CR; rules may change in 2011
  9. 9. SBIR builds value in your businessfor the owners of your business• Not dilutive like equity investment• No future debt accrued• Inventors retain 100% intellectual property and commercialization rights• Licensing and royalties=future revenue streams
  10. 10. Funding for SBIR projects differ by agency and solicitation• Phase I---from $70K for proof of concept (current NSF is $150K)• Phase II---$750K- $1.5 million to build out• Phase III---commercialization opportunities with agencies and private firms (usually no cash)
  11. 11. SBIR and STTR fund direct project work in several areas• Exploitation of scientific breakthroughs• Innovative use of emerging technologies• New application or major improvements to existing technologies• Commoditized technology won’t be accepted
  12. 12. 11 agencies host SBIR programs,and 6 host STTR programs• Agriculture• Commerce• Defense - also STTR• Education• Energy - also STTR• EPA• Health and Human Services - – National Institutes of Health - also STTR – Health Care Financing Administration• Homeland Security- also STTR• Transportation• National Aeronautics and Space Administration - also STTR• National Science Foundation - also STTR
  13. 13. To be eligible for SBIR/STTR,companies must be US-owned andindependently operated• For-profit firm with fewer than 500 employees• Not dominant in the proposed field of operation• PI employed by the business over 50% time – For SBIR; STTR depends on the agency• Research direction must be controlled by the SBIR grantee
  14. 14. To apply, the first step is to identifyall topics that relate to yourcompany’s R&D interests www.zyn.com www.sbir.gov • Links to SBIR information resources • SBIR/STTR solicitation schedules
  15. 15. The second step is to reviewsolicitation information for theopportunities you have selected• Pre-solicitation announcements• Guidelines – Requirements - technical and personnel – Award amounts – Application and submission details• Research funded in the past• Sample or model proposals- be careful!
  16. 16. The third step is to contact eachagency to learn why the agency isfunding your topic• Treat each agency as you would treat any customer• Technical questions allowed before release date• Only administrative questions after release date• DOD has a pre-release period• HHS and Agriculture not concerned about release date restrictions
  17. 17. Tactical strategies are necessary tobe competitive – you will need aplan to win• Have a clear vision of the customer• Leverage federal and state resources• Leverage relationships with outside organizations• Consider the use of experts• Leverage personal resources• Ask for letters from potential customers
  18. 18. You must be prepared to sell thevalue of your idea• An investor is an investor• Evaluate how you fit the funder’s needs• Understand the funder’s motives and values• Be able to articulate how your approach is different from competing technologies• Show that you know your market
  19. 19. The proposal will require more than‘filling out a form’—write for yourreader!• Proposal quality is key• The text should be engaging and easy to read, but avoid marketing-speak• Don’t make the reader dig for information; highlight key points• Use pictures, tables and figures
  20. 20. ITAC SBIR specialists can lead youthrough the SBIR/STTR mazeWe can:• Help you find the right opportunity• Match you with a research lab partner• Match you with a small business• Advise you on proposal strategy• Read your proposal with commentsWe can’t:• Write the proposal for you
  21. 21. Thank you, and feel free tocontact me with any questions orfor a copy of this presentationColleen GibneyTechnology Project ManagerITAC ITAC www.ITAC.org CGibney@ITAC.org 212-442-2990Special thanks to Marcene Sonneborn, TDO

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