Earle Hager / The Neutrino Donut, LLC9:52 AM

Hello, everyone. I got here a little early, since traffic on the 405 is a little crazy. I am going to put some basic notes out on the SBIR program to start the discussion.2

The SBIR and STTR Programs
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are highly competitive programs that encourage domestic small businesses to engage in Federal Research/Research and Development (R/R&D) with the potential for commercialization. Through a competitive awards-based program, SBIR and STTR enable small businesses to explore their technological potential and provide the incentive to profit from its commercialization. By including qualified small businesses in the nation’s R&D arena, high-tech innovation is stimulated, and the United States gains entrepreneurial spirit as it meets its specific research and development needs.
Central to the STTR program is the partnership between small businesses and nonprofit research institutions. The STTR program requires the small business to formally collaborate with a research institution in Phase I and Phase II. STTR’s most important role is to bridge the gap between performance of basic science and commercialization of resulting innovations.

The mission of the SBIR/STTR programs is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.
The program’s goals are to:

• Stimulate technological innovation.
• Meet Federal research and development needs.
• Foster and encourage participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons.
• Increase private-sector commercialization of innovations derived from Federal research and development funding.

In addition, the STTR program aims to:

• Foster technology transfer through cooperative R&D between small businesses and research institutions.

Only United States small businesses are eligible to participate in the SBIR/STTR programs. A small business must meet the eligibility requirements set forth in 13 CFR 121.702 “What size and eligibility standards are applicable to the SBIR and STTR programs?” at the time of Phase I and II awards, which specify the following criteria

1. Organized for profit, with a place of business located in the United States
2. More than 50% owned and controlled by one or more individuals who are citizens or permanent resident aliens of the United States, or by other small business concerns that are each more than 50% owned and controlled by one or more individuals who are citizens or permanent resident aliens of the United States; and
3. No more than 500 employees, including affiliates

For SBIR awards from agencies using the authority under 15 U.S.C. 638(dd)(1), an awardee may be owned and controlled by more than one VC, hedge fund, or private equity firm so long as no one such firm owns a majority of the stock.
Phase I awardees with multiple prior awards must meet the benchmark requirements for progress toward commercialization.

Bottom line? About 3% of the Federal Research money goes to small businesses. There is a review process from each agency (NIH, DoE, NSF, etc) to validate the idea and the commercialization of the idea.

It is non-dliuted money. It’s free until you realize you have to work for it.

The process starts with an idea. The idea needs to be a technical innovation. After you have your idea, you need to understand the term “Topics.” A topic is an area of interest by one of the agencies.

This can be a project in development. Phase 1 is about validating the technology. Phase 2 is about commercializing the technology. That is where the product development occurs. In Phase 1, up to $300K, you can develop your prototype and test it for innovation. In Phase 2, you look to create a marketable model, with design and manufacturing partners (up to $1.5m).

You can be in the idea stage to start the SBIR process. The early stages have a low overhead to work with the agencies and determine next steps.

At this point, you should look to the NSF Quick Pitch information. This will give you an idea of what the agencies are looking for in the grants.2

1. The Technology Innovation. (up to 500 words)

2. The Technical Objectives and Challenges. (up to 500 words)
3. The Market Opportunity. (up to 250 words)
4. The Company and Team. (up to 250 words)

Put that together and you have a start. This document can be submitted to the NSF for a Phase 1 and start the conversation with other agencies on your idea.

https://seedfund.nsf.gov

seedfund.nsf.gov

America’s Seed Fund – NSF SBIR/STTR | NSF SBIR

America’s Seed Fund powered by the National Science Foundation (NSF SBIR/STTR) supports startups with research and development funding to create technologies.

If you do a good job on your application and get rejected, they will often give you feedback on what to fix in your application. That’s the good news. The next review team may be completely different and have a totally different perspective on what you need to work on. Bummer.

So, here’s the lesson. You have to be ready to move quickly on the grant process. The window is a few months and you have to get it submitted by the deadline. You have to want to get this done and accomplish your goals.

You define the issue in the grant. It will be based on the role of the university on whether new IP is created.
I have done projects in Hungary, India, Korea, Mexico, Portugal, Chile, Ukraine, Russia, Qatar and other countries. I have been to many of these countries, working with startups.

At The University of Texas, I was sent to Hungary to help review about 12 technologies. I had thick books with extended descriptions of the techs. I was in the Frankfort Airport for about 8 hours, read them all, and I saw the whole field. I saw the idea, the market, the steps, everything. It was when I realized I found my calling. I left all the binders and documentation in the trash because I saw it all. Chess players will look at a board and see everything. That’s what I saw. This has been my passion for over fifteen years. I have no plans to ever stop.