Are you developing innovative technology? Are you looking for funding for your R&D? Are you interested in pursuing an SBIR or STTR opportunity but aren't sure where to start? You've come to the right place! At InterKn, our mission is to educate entrepreneurs and researchers about alternative innovation funding. In this short presentation, we discuss everything you need to know about the SBIR Program and how you can use it to fund your project past proof-of-concept and on to a commercially viable product! For more free information on innovation funding resources, visit us at https://www.interkn.com.

1. Presented by
Go to https://www.interkn.com for more free
innovation funding information.

2. What we’re going to review?
• About the SBIR Program
• Basics of the Program
• History, Structure, Eligibility, Analytics
• Strategy for Applying
• Selecting the right agency
• How to position your idea/proposal
• Getting the most from this presentation
• Problems/How to Navigate
• Questions

3. What are the SBIR and STTR Programs?
Approximately $2 Billion in Federal Funding that:
Supports Small Businesses Stimulates Technology Innovation Commercializes Products

4. Small Business R&D,
0.06% of the Federal Budget
The Federal Budget Galaxy

5. 88%, SBIR
12%, STTR
Small Business R&D,
0.06% of the Federal Budget

6. What are the SBIR and STTR Programs?
SBIR Program
(Small Business Innovative Research)
• Stimulate technological innovation
through Federal Research and
Development (R&D)
• Foster job creation and
participation in innovation and
entrepreneurship through small
businesses in the US.
• Increase private sector
commercialization of innovations
derived from federal R&D.
STTR Program
(Small Business Technology Transfer)
• Stimulate technological innovation
through Federal Research and
Development (R&D)
• Foster technology transfer through
cooperative R&D between small
businesses and research
institutions.
• Increase private sector
commercialization of innovations
derived from federal R&D.

7. How are the SBIR and STTR Programs Funded?
SBIR Program
(Any Agency with R&D Budget > $100 Million)
• Required to allocate 3.0% of
their R&D Budget to these
Programs
STTR Program
(Any Agency with R&D Budget > $1 Billion)
• Required to allocate .45% of
their R&D Budget to these
Programs

8. Goal of the SBIR/STTR Programs
(Not an alternative to funding basic research)
Valley of Death
Idea
Product

9. Goal of Traditional Seed Financing
Isn’t that the same image? What’s the difference between the two?
Valley of Death
Idea
Product

10. VC and Traditional Funding
Debt
Financing
Traditional Funding Dollars
Payback
Diluted
Equity
Equity
Financing

11. SBIR/STTR Funding
Federal
Agencies
SBIR/STTR Award Dollars
Payback
Diluted
Equity
Federal
Budget

12. History of the SBIR Program

13. Modern Day SBIR Program
- Authorized as part of NDAA in
2016
- Separate Legislation for SBIR/STTR
- Funding directly proportional to
agencies existing extramural
research budget (ie. Money spent
on R&D outside of Gov facilities)

14. SBIR/STTR Structure – Levels of Authority
Congress
Small Business
Administration (SBA)
Federal Agencies
Legislation Establishing and Re-Authorizing the
Program
• R&D Budgets for Participants
• Funding Levels
• Program Intent and Goals
• Eligibility
Translates law into Policy Directives
• Clarifies eligibility rules
• Establishes general policies
• Oversees compliance
Customize the programs to fit their mission
• Technological Innovation Requirements
• Award Mechanisms and Size of Awards
• Duration of Projects

15. What type of awards are the SBIR and STTR?
Grants
• Assistance
• Scope is well-defined, no formal deliverables
• Progress/Final Reports
• Broad Topics
• Agency contact is unlimited
• No Phase III opportunities
Contracts
• Procurement
• Well-defined, legally binding statement of work,
obligations, responsibilities
• Specific deliverables defined
• Topic-specific response
• Agency contact limited
• Phase III opportunities

16. Granting vs. Contracts Agencies
National Science Foundation
(NSF)
Granting Agency
2 Award Cycles Annually
External Peer Review Evaluation of Proposals
Broad Topic Areas
Applicant Specific Deliverables
NSF will NEVER be a customer
Department of Defense
(DoD)
Contracting Agency
3 Award Cycles Annually
Internal Evaluation Process of Proposals
Specific, Detailed Topics
DoD – Defined Deliverables
DoD is a Prospective Customer

17. Three Phased Program
Phase I Phase II Phase III
Feasibility Development Commercialization
Program
Budget
Duration
Program
Budget
Duration
Program
Budget
Duration
SBIR/STTR SBIR/STTR Non-SBIR/STTR
$150,000*
6 Months
$1,000,000*
2 Years
???
???
* Agencies have authority to exceed budget by 50%

18. Product Lifecycle Structure and Reducing RiskRisk
ProductLifecycle
Phase I Phase II Phase III
Idea
Proof of Concept
Prototype
Product
Customers
Prelim Data
Feasibility
Product Development
Commercialization

19. Alternative and Supplemental Programs
Phase I Phase II Phase III
Phase IB Program
Provides additional
Phase I dollars
Fast Track Program
Apply for Phase I & II
Simultaneously
Phase IIB Program
Provides additional
Phase II dollars
Direct to Phase II
Bypass Phase I
Commercialization
Readiness Programs
Continued funding to
build business and
marketing strategy
* Agency Specific, not all have these programs

20. Am I eligible for this money?
• For-Profit?
• < 500 Employees
• Not Majority Owned by VC, PE, or
Large Company > 500 employess
• U.S. Owned (>50%)
• U.S. Located
• Plan to work R&D in the U.S.

21. Is your entity eligible for this money?
• Individual Proprietor
• Partnership
• Limited Liability Corporation (LLCs)
• Corporations (C, S)
• Joint Venture
• Association
• Trust
• Cooperative

22. Agency Analytics (11 Participating)
SBIR Total STTR Total
DOA 22,541,521 22,541,521 1% 100%
DOC 10,041,617 10,041,617 1% 100%
DOD 675,796,000 91,758,768 767,554,768 40% 88%
ED 11,991,440 11,991,440 1% 100%
DOE 206,950,457 27,862,995 234,813,452 12% 88%
DHHS 454,709,162 63,741,190 518,450,352 27% 88%
DHS 28,721,993 28,721,993 2% 100%
DOT 11,294,370 11,294,370 1% 100%
EPA 4,488,479 4,488,479 0% 100%
NASA 147,419,493 21,814,164 169,233,657 9% 87%
NSF 108,485,789 19,104,502 127,590,291 7% 85%
Total 1,682,440,320 224,506,616 1,906,946,936 100%
SBIR % of
Total Spent
Amount of Awards 2015
Agency % of
Total Spent
Grand Total
AgencyDOA
1%
DOC
1%
DOD
40%
ED
1%DOE
12%
DHHS
27%
DHS
1%
DOT
1%
EPA
0%
NASA
9%
NSF
7%
* 5 Agencies make up 95.3% of the awarded dollars

23. InterKn ESCAPE Plan to Applying
 Eligibility
 Suitability
 Capability
 Applicability
 Packability
 Excitability

24. Eligibility
 For-Profit
 A majority (>50%) of the firm’s equity (ie. Stock, including options)
must be owned and controlled by:
1. One or more individuals who are US Citizens or, permanent resident aliens
2. Other for-profit small business concerns (13 C.F.R. §121.105)
3. A combination of (1) and (2) above
4. Multiple venture capital operating companies, hedge funds, private equity
firms, or any combination of these, so long as no one such firm owns or
controls more than 50% of the equity
 Less than 500 employees for applicant and affiliate companies
including:
1. Full-time, part-time and other basis
2. Temp Leased Employees from Agency
3. Based on average for each pay period in previous 12 months

25. Suitability
Do you meet the objectives and means of the Agency?
 For Research and Development
 What is the intended product or service?
 What has been done?
 Is it a Technological Innovation
 How is your proposed solution different from
what is currently available?
 Is this revolutionary or evolutionary?
 Have a credible commercialization strategy
 Have you identified the market and competitors?
 Do you have the resources currently or identified
to achieve a product?
 How do you generate revenue?

26. Capability
Principal Investigator (PI) or Project
Director (PD)
• Qualified
• Employed (W-2) >50% by the small
business at the time of award and
for duration of the project
• Legal right to work in U.S.
• Devote Majority of time to the
project
• STTR Requires ‘official relationship’
and at least 10% LOE (except NSF)
Facility
• U.S. Owned and Located
• Dedicated space suitable to
perform the work level of effort

27. Applicability
• What Agency/Agencies fund your Innovation?
• What is the Agency’s technologies of interest?
• Do they have open solicitations? Match your
capabilities?
• What is the timing of their solicitation match
our forecast?
• Do they have budget for follow on work?
• Do I fully understand their solicitation process?
• What are their evaluation criteria?
• What are the success rates?

28. Packability
Principal
Investigator
Other
Employees
Advisors/Letts
of Support
ConsultantSubcontractors

29. Packability - The Team
Consultants / Subcontractors
* The employment of faculty and students by the small business
may also occur.
Letters of Support
• Most agencies allow up to three
letters of support.
• Crucial to supporting
commercialization strategy and
market validity
• What is the biggest factor found
between SBIR proposal and
award?
Company RI SubK
SBIR ≥ 67% - ≤ 33%
STTR ≥ 40% ≥ 30% ≤ 30%
Company RI SubK
SBIR ≥ 50% - ≤ 50%
STTR ≥ 40% ≥ 30% ≤ 30%
Phase I
Phase II

30. Excitability
• Have you submitted pre proposal
feedback or LOI?
• Does the Program Manager, Director,
TPOC consider you proposal agency
priority? Even applicable or fundable?
• Have they seen your Company/PI before?
• Did you speak with them at a conference,
road tour or through a webinar?

31. STTR Insight
Potential Advantages
• Company lack credible PI
• No qualified researcher employed
• Cannot leave university (tenured)
• Access to Facility or Tools
• Lab space/Equipment
• Institutional Review Boards (IRB)
• Animal Welfare Committees
• Higher % of Subcontract $$$s
• Company and partner must sign
intellectual property (IP)
agreement
• “Budget and Certification of
Research Institution” form required
• Virtual Companies do not qualify
• Cognizant of conflict of interest and
future issues down the road with
licensing
Collaboration for Non-Profit

32. ESCAPE plan … Now what… Compliance
Fraud, Waste, and Abuse
Fraud includes any false representation about a
material fact or any intentional deception designed
to deprive the United States unlawfully of something
of value or to secure from the United States a
benefit, privilege, allowance, or consideration to
which an individual or business is not entitled.
Waste includes extravagant, careless or needless
expenditure of Government funds, or the
consumption of Government property, that results
from deficient practices, systems, controls, or
decisions.
Abuse includes any intentional or improper use of
Government resources, such as misuse of rank,
position, or authority or resources.
Know the rules!!

33. So why SBIR/STTR?
Positives
+ Fund “High-Risk” Broad Projects
+ Non-Dilutive Funding
+ Company Retains IP and Data
+ Increased Visibility
+ Multiple Awards
+ Open Competition
+ ~$2 Billion Dollars
Negatives
- National Competition
- Limited funding per project
- Focus is on R&D
- Long proposal timelines
- Proposal/Grant Writing Experience
- No National Recognition
- No guarantee of success

34. Problems with SBIR/STTR
• Lack of consistent information,
disparate, conflicting
• Helping with the “Now what” after
• Cumbersome and convoluted process
• Not well publicized
• Support for small business is lacking

35. In closing…. Be Strategic
Agency
Project
Company

36. About InterKn
Michael Pansky OUR MISSION
To accelerate innovation by
delivering non-traditional funding
opportunities to innovative
companies and research
institutions
THE PROBLEM
No single tool or service
provides a holistic view of what
is important to companies
seeking SBIR financing all the
way to growth stage funding

37. Find funding for free
Michael Pansky
At InterKn, we believe finding
funding should be easy. That’s why
our funding search is simple,
intuitive, and most importantly,
free. Search a capability, find
opportunities, and get funded. Try it
yourself at https://www.interkn.com