5 Questions to Consider Before Pursuing SBIR/STTR Funding
Collectively known as America’s Seed Fund, the Small Business Association (SBA) manages the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These are U.S. government-funded programs in place to help small businesses develop new technologies and commercialize them. The SBIR/STTR programs are the largest source of funding in the U.S., awarding billions annually to small businesses across America, without taking equity or intellectual property rights. For academic researchers, these funds represent a tremendous opportunity to advance their technology through research and development, making critical progress in their journey toward commercialization. When deciding if SBIR/STTR funding is right for you, it is important to consider several questions before you proceed.
Question 1: Is Your Technology Innovative?
You should be able to demonstrate that your technology presents a novel and new solution to a specific problem.
Question 2: Is Your Technology Commercially Viable?
According to the SBA, one of the four goals of the SBIR program is to: “Increase private sector commercialization of innovations derived from Federal R/R&D, thereby increasing competition, productivity, and economic growth.” Therefore, not only should your technology be innovative, it must be commercially viable.
Question 3: Is It Relevant To the Agency You Are Applying To?
You should be able to clearly demonstrate how your technology aligns with the specific agency’s needs and priorities. You’ll need to have a thorough understanding of the agency’s goals and be able to effectively communicate the relevance of your solution.
Question 4: Do You Have the Right Team?
You’ll need to be able to clearly and comprehensively explain your team’s technical expertise, management experience, industry experience, academic credentials, and any other relevant history that shows your team’s ability to be successful.
Question 5: What’s Your Commercialization Plan?
You should be able to clearly communicate a detailed roadmap for commercialization that includes: a strategy for transitioning from Phase I to Phase II, a realistic analysis of your market and your solution’s potential within it, a thorough understanding of your customers and value proposition, and details on strategic partnerships.
Key Points:
SBIR/STTR funds represent the largest source of non-dilutive funding in the U.S., awarding billions annually to small businesses across America, without taking equity or intellectual property rights.
Companies pursuing SBIR funding should be prepared to answer the following questions: Is your technology innovative? Is it commercially viable? Is it relevant to the agency at hand? Do you have the right team? Do you have a commercialization plan?
Deep Dive Resources:
Don't navigate the SBIR/STTR process alone. As West Virginia's FAST program partner, we provide academic researchers and small businesses free assistance to help them secure federal funding.
Reach out today to discover how we can help you shape your innovative idea into a winning proposal. Find more information and resources here.
