November 13, 2023
How to win your startup SBIR/STTR grants
The lucrative world of government grants
Introduction
In this blog, we delve into the lucrative world of government grants, in particular, SBIR and STTR grants, as a means of catalyzing the success of your startup. These grants are an untapped capital source for many entrepreneurs and knowing how to secure them can provide significant leverage.
Understanding SBIR / STTR Grants
The Small Business Innovation Research (SBIR) Program is a United States government initiative to fund small businesses with innovative research that has commercial potential. To qualify for this grant, your firm must be a for-profit business with fewer than 500 employees. SBIR primarily funds projects in fields like health, education, and the environment.
On the other hand, the Small Business Technology Transfer (STTR) Program funds cooperative R&D projects involving a small business and a research institution. Like SBIR, it is limited to small, for-profit businesses, but a formal relationship with a research institution is necessary. Essentially, STTR grants focus on transferring research developments into marketable products.
Eligibility criteria require the company to be small (fewer than 500 employees), U.S.-based, with at least 50% equity held by U.S. citizens or permanent residents. The principal investigator (i.e., CEO or co-founder) must be legally employed by the company for a minimum of 20 hours per week and commit to at least a month of work for every six months of project duration.
The business must not be majority-owned by multiple venture capital, private equity, or hedge funds. Lastly, all funded work must be carried out in the United States.
How to Apply for SBIR / STTR Grants
Both programs have three stages: the project pitch, full proposal, and review stage. Official websites of these grants provide all critical dates and deadlines. It's vital to follow all guidelines during the application, providing rich and precise project descriptions that align with the program's goals.
Reviewers prioritize unique, innovation-driven proposals with a robust execution plan. Tailoring your proposal to meet program goals can amplify your success. Avoid generic proposals and focus on your project's relevance, feasibility, and economic potential.
The Project Pitch
This is a required part of the application process for Phase I funding from America’s Seed Fund. Startups and small businesses present an outline of their innovative technology project, enabling them to receive fast feedback from the National Science Foundation (NSF) as to whether their project aligns with the program's objectives. The Project Pitch must cover four key elements: The Technology Innovation, The Technical Objectives and Challenges, The Market Opportunity, and The Company and Team. Feedback from NSF can lead to a full proposal invitation, or valuable insights as to why the project does not fit the program. Notably, each business can only submit one Project Pitch at a time, with subsequent submissions awaiting response or resolution of a prior application.
A hack that can save you a lot of time here is to reach out to the program directors directly for quick feedback as the review process can take up to a month.
Case Studies
Numerous startups have scaled their operations using SBIR and STTR grants, reinforcing the immense potential of these grants. But don't expect this to be easy. Grants are known to be:
'Free' money you pay for in time (slow), acid reflux, lost sleep, total lack of communication, and having to deal with bureaucracy - anonymous founder
This is where Atom comes in, we speed up the process of finding and writing grants. You can get started here.
Conclusion
In summation, tapping into government grants like SBIR and STTR can significantly boost your startup’s growth and stability. Remember, applying requires diligence, innovation, and adherence to all requirements and Atom can help you every step of the way.
Take the leap. Explore SBIR/STTR grants with Atom and give your startup the financial push it needs.