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Securing SBIR|STTR Non-Dilutive Funding for Startups
- 1. SBIR|STTR Federal Funding Securing SBIR|STTR Non-Dilutive Funding For Startups & Small Businesses NARINE EMDJIAN Founder at iFundLab ifundlab.com narine@ifundlab.com
- 2. The Myth Start-up funding or VC funding is free because this money does not have to be returned and raising venture capital doesn’t change the way you run your business. But that is not true. 5% Only 5% of startups raise venture capital, The global venture funding decreases by 23% in 2022. Early-stage funding went down 22% from the average monthly funding in 2021. 2% Female founders secured only 2% of venture capital in the U.S. in 2021, the smallest share since 2016. Black and Latinx founders have received just 2.6% of VC funding so far in 2020 20% Most pre-seed & seed rounds will require up to 20% company’s equity dilution. ifundlab.com
- 3. Government spends ~$4 billion non-dilutive funding each year through 11 federal agencies 6,769 new awards have been made in FY21.Phase I success rate has been nearly ~16% and ~60% for Phase II How To Survive Valley Of Death? ifundlab.com Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) federal funding programs enable US-owned and operated small businesses to conduct research and development that has a strong potential for commercialization.
- 4. Dept of Health and Human Services (HHS/NIH/FDA, CDC) Department of Defense (DoD) Department of Energy (DOE) National Science Foundation (NSF) National Aeronautics & Space Admin. (NASA) Department of Agriculture (USDA) Department of Commerce (DoC) NIST, NOAA Department of Homeland Security (DHS) Environmental Protection Agency (EPA) Department of Transportation (DOT) Department of Education (ED) ifundlab.com SBIR & STTR By Participating Agencies
- 5. PERCENT OF BUDGET 3.2% of the extramural research budget for agencies. ~$3.4 billion minimum spend each year SBIR vs STTR SBIR VS STTR PARTNERSHIPS Stimulate R&D activities with potential for commercialization. Research partnerships are allowed PERCENT OF WORK Primary employment (> 50%) must be with the small business PERCENT OF BUDGET 0.45% of the extramural research budget for agencies. ~$450 million minimum spend each year PARTNERSHIPS Facilitate partnership between small businesses and U.S. research institutions with potential for commercializationPartnership with research institution is required PERCENT OF WORK 40% by small business 30% by research institution partner ifundlab.com
- 6. Continue R&D efforts initiated in Phase I Prototype Development/ Commercialization 24 months ~ $400,000 for – $1.5M Note: Only Phase I awardees are eligible for a Phase II award. PHASE II Concept Development/Idea Validation Technical Merit/Feasibility Study 6 months – 1 year ~ $50,000 – $275,000 PHASE I SBIR/STTR Phases Commercialization Additional R&D funds ~ $500,000 PHASE IIB ifundlab.com
- 7. HOWTO APPLY?
- 8. SOLICITATION ELIGIBILITY Application Process Have a strategy which funding to apply Determine the eligibility to eligible to submit applications Consider 6 weeks or more to complete the registration COMMUNICATION Talk through your idea with program managers Follow the instructions and guidelines Ensure no errors were flagged. Confirm with Program Manager SUBMIT/TRACK PREPARATION REGISTRATION ifundlab.com
- 9. ifundlab.com Where To Look For SBIR Opportunities https://www.sbir.gov/ https://www.grants.gov/ https://seedfund.nsf.gov/ https://sbir.cancer.gov https://seed.nih.gov/ https://www.navysbir.com/
- 10. 4-Steps To Verify Company's Eligibility SMALL BUSINESS Company is a small business based in the United States, (500 employees or less) organized forprofit 01 OWNERSHIP At least 50% of the Company should be owned and controlled by US individual(s) or permanent resident(s) 02 EQUITY The majority of the company should NOT be owned by venture capital operating companies, hedge funds, or private- equity firms 03 WORK R&D and other activities must be done in the U.S. Universities can only be subcontractors, not recipients, of SBIR/STTR awards 04 ifundlab.com
- 11. SAM Required Registration by Agencies NSF NIH DOE USDA EPA AGENCIES SBA GRANTS.GOV DUNS FASTLINE FEDCONNECT eRA COMMONS Start now! It can take 6 weeks or more to complete the registration process. ifundlab.com
- 12. How To Prepare Successful Application Follow the instructions and guideline UNDERSTAND AGENCY'S NEEDS PRESENT STRONG R&D CONCEPTS DEMONSTRATE INNOVATION USE MEASUREABLE MILESTONES STICK TO BUDGET ifundlab.com
- 13. Elements of a Proposal (NSF SBIR CASE) PROJECT SUMMARY Maximum one page and should be written in the third person, informative way PROJECT DESCRIPTION The core of the proposal, with a maximum of 15 pages. It should be built on 4 main sections - technical, intellectual merit, broader impacts, and commercial opportunity. BIOGRAPHICAL SKETCHES Biographical Sketches should be for each PI, co-PI (if STTR), and Senior Personnel (individuals with critical expertise who will be working on the project) BUDGET & BUDGET JUSTIFICATION The total budget shall not exceed $275,000 for the Phase I proposal CURRENT /PENDING SUPPORT All SBIR/STTR proposals submitted to NSF are required to include Current and Pending Support for each PI, co-PI (if STTR), and Senior Personnel FACILITIES & EQUIPMENT Purchase of equipment is NOT permitted in a Phase I project. I Required Project Pitch Invitation: Potential proposers must receive an invitation to submit a full NSF SBIR/STTR Phase I proposal ifundlab.com
- 14. Thank you! Narine Emdjian Federal Funding Expert Founder of iFundLab narine@ifundlab.com www.ifundlab.com