Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Rainbows, Unicorns & Uncle Sam: Funding for your startup


Published on

SBIR (Small Business Innovation Research) grants are viable source of funding for startups. They sound too good to be true, but it's a real program and an accidentally well kept secret.

Published in: Business, Technology
  • WONDERFUL JOB!.... STARTUPS...Send your pitchdeck to over 5700 of VC's and Angel's with just 1 click. Visit:
    Are you sure you want to  Yes  No
    Your message goes here

Rainbows, Unicorns & Uncle Sam: Funding for your startup

  1. 1. SBIR It’s Like The Easiest $$$ Eva! Rainbows, Unicorns & Uncle Sam: Free Money for your Startup by Nicholas Napp is licensed under a Creative Commons Attribution- ShareAlike 3.0 Unported License .
  2. 2. SBWhat? <ul><li>SBIR = Small Business Innovation & Research </li></ul><ul><li>Federally mandated grant program </li></ul><ul><ul><li>All agencies with $100M or more must set aside 2.5% of their budget for SBIR programs </li></ul></ul><ul><ul><li>$2+B in awards per year </li></ul></ul><ul><ul><li>For small, US based companies </li></ul></ul><ul><ul><li>DOD, HHS, NASA, DOE, NSF, DHS, USDA, DOC, ED, EPA, DOT </li></ul></ul><ul><li>Companion program for tech transfer opportunities (STTR) </li></ul>
  3. 3. Why Should You Care? <ul><li>Phase 1 is typically $100k - $150k </li></ul><ul><ul><li>Odds of getting a Phase 1 are ~1:8 </li></ul></ul><ul><li>Phase 2 is $500k or more </li></ul><ul><ul><li>Odds of getting a Phase 2 are 1:3 </li></ul></ul><ul><li>Phase 3… </li></ul><ul><ul><li>You’re on your own </li></ul></ul><ul><li>It’s a grant!!! </li></ul><ul><ul><li>No equity participation </li></ul></ul><ul><ul><li>Relatively few strings attached </li></ul></ul>
  4. 4. My Assumptions <ul><li>Too slow </li></ul><ul><li>Too stupid </li></ul><ul><li>Unlikely to be a fit for anything I was interested in working on </li></ul><ul><li>a.k.a. A Giant Waste of Time </li></ul>
  5. 5. The Reality <ul><li>Very Responsive </li></ul><ul><li>Program Manager very well informed </li></ul><ul><li>Some agencies have very broad mandates </li></ul><ul><li>Painful dotting of i’s and crossing of t’s </li></ul><ul><li>But a very viable funding source </li></ul>
  6. 6. Typical NSF Topics <ul><li>Very, very broad </li></ul><ul><ul><li>Biological and Chemical Technologies </li></ul></ul><ul><ul><li>Education Applications </li></ul></ul><ul><ul><li>Electronics, Information & Communications Technologies </li></ul></ul><ul><ul><li>Nanotechnology, Advanced Materials & Manufacturing </li></ul></ul><ul><li>[Click links to see detailed topic lists] </li></ul>
  7. 7. No Two Agencies Are The Same <ul><li>DoD & NIH have bigger budgets </li></ul><ul><ul><li>Phase 2 can be $1M or more </li></ul></ul><ul><li>Nasa tends to be very specific </li></ul><ul><ul><li>e.g. Glue for Space Shuttle tiles </li></ul></ul><ul><li>Different process, different procedures </li></ul><ul><ul><li>Application process </li></ul></ul><ul><ul><li>Budgets </li></ul></ul><ul><ul><li>Allowable costs </li></ul></ul><ul><ul><li>Overall goals </li></ul></ul>
  8. 8. Phase 1 / NSF Specific <ul><li>Feasibility Study, not a full product </li></ul><ul><ul><li>Research focused </li></ul></ul><ul><ul><li>High risk scientific research </li></ul></ul><ul><ul><li>Broad societal impact </li></ul></ul><ul><ul><li>Commercial potential </li></ul></ul><ul><li>Six Month Project </li></ul><ul><li>$150k budget, with strings attached </li></ul><ul><li>~30 pages in standard proposal </li></ul>
  9. 9. Timeline / NSF Specific May 2009 Initial contact with Program Manager Jun 9, 2009 Proposal due Sept 24, 2009 Request for additional info & conference call Oct 2, 2009 Conference call & decision to fund Nov 17, 2009 Formal notification Jan 1, 2010 Grant begins Jan 4, 2010 Money in bank (approx 2/3 upfront) June 30, 2010 Grant ends
  10. 10. Budget / NSF Specific * Mandatory allocations with set %’s & limits * * *
  11. 11. Metrics: Compare & Contrast PREVIOUS STARTUP MOVEABLECODE Time spent trying to raise money 18 months 1 month + waiting time VC Angel play (in principal) Yes Yes Within scope of NSF SBIR Yes Yes # Business Plans / Exec Summaries / PPT Decks 10+ / 15+ / 30+ 0 / 1 / 2 Meetings: Bullshit vs Productive 30 : 1 0 : 1 % of Soul Sold or Destroyed 25% 0% Actual Money Raised $20k $200k Equity given up ~15% 0%
  12. 12. Other Key Points… <ul><li>Takes a long time to write – you can’t do it in a week </li></ul><ul><li>Next NSF SBIR Deadline is June 10, 2011 </li></ul><ul><li>Attend an SBIR overview class </li></ul><ul><li>Many agencies have matching funds available </li></ul><ul><ul><li>NSF has $550k for $1.1M in investment or customer revenue </li></ul></ul>
  13. 13. Useful Links <ul><li> </li></ul><ul><li> </li></ul><ul><li>& </li></ul>