2. What is the SBIR/STTR Program?
A ~$2.6 Billion+ Federal Funding Program
SBIR: Small Business Innovation Research
STTR: Small Business Technology Transfer

3. SBIR/STTR Program Overview
Small Business Innovation Research (SBIR): a set-aside program created by Congress in 1982 for small business concerns to engage in Federal R&D -- with potential for commercialization. Small Business Technology Transfer (STTR): a set-aside program created by Congress in 1992 to facilitate cooperative R&D between small business concerns and U.S. research institutions -- with potential for commercialization.
3.2%
FY2019
0.45%
FY2019
SR: Updated to reflect FY2016

4. SBIR/STTR Budgets by Agency, FY 2016
Agencies with SBIR & STTR Programs
Budget
Department of Defense (DOD)
$ B
Department of Health and Human Services (HHS): National Institutes of Health (NIH)*
$891.0 M
Department of Energy (DOE), including Advanced Research Projects Agency (ARPA-E)
$228.6 M
National Science Foundation (NSF)
$187.7 M
National Aeronautics and Space Administration (NASA)
$ M
Agencies with SBIR Programs
Budget
U.S. Department of Agriculture (USDA)
$28.8 M
Department of Homeland Security (DHS):
$17.0 M
Department of Education (ED)*
$12.5 M
Department of Transportation (DOT)
$11.6 M
Department of Commerce (DOC): National Oceanic and Atmospheric Administration (NOAA) and National Institute of Standards and Technology (NIST)*
$7.5 M
Environmental Protection Agency (EPA)
$4.9 M
SR: Updated with new numbers
SBIR: $2.5B in FY16
STTR: $361 Million
Across all agencies
Grants
Contracts
*NIH and ED also issue contracts; Within DOC, NIST issues grants and NOAA issues contracts

5. Why SBIR/STTR?

6. Funding for Commercialization
Debt
Equity
Non-Dilutive

7. Goal of SBIR/STTR Programs
a.k.a. “Come Back When
Source: SBIR and the Phase III Challenge of Commercialization: Report of a Symposium. NAS, 2007.
Copyright © 2015 BBC Entrepreneurial Training & Consulting, LLC

8. SBIR/STTR: Why? Non-dilutive capital (‘free’ money) Peer review
3/27/2018
SBIR/STTR: Why?
Non-dilutive capital (‘free’ money)
Peer review
Validation of technology
Commercialization focus
Funds technology risk
Enables early transfer of technology and establishment of start-up companies
(c)BBC Entrepreneurial Training & Consulting

9. It’s not just another way to fund your research!
SBIR/STTR
It’s about more than just your cool science
It’s not just another way to fund your research!

11. In order to apply for an SBIR you need…
A small business
An address
A company bank account

12. SBIR/STTR: What do you need to apply?
An eligible small business concern (SBC)
A product to be developed
Based on technological innovation
Company controlled R&D facilities*
R&D personnel employed at the SBC*
An SBIR/STTR open solicitation
Discipline, energy, enthusiasm, the ability to follow directions, patience….
*described at time of application; implemented by time of award

13. You must have a small business
For-profit
US-owned and controlled
< 500 employees
Located in the U.S.
R&D must be performed in the U.S.
Company-controlled research space
(other rules regarding ownership and size)

14. In order to receive an SBIR/STTR Award…
People
Facilities
Other Resources

15. You Need a Project Team Company Employees* Domain expertise
Senior personnel
Other personnel
Independent Consultants
Specialized expertise
Subcontractors
Employees of another company/institution
Advisors
May or may not be compensated
Available “as needed”
* A Just in Time (JIT) requirement
Employees – senior vs. non-senior
Example of advisor – Univ professor (founder/advisor) not on project team
Use of Univ facility & equipment
Commercialization expertise

16. You Need a Principal Investigator
For an SBIR the PI MUST be employed by the small business and have 50% of their professional effort at the small business.
Note: ‘Qualifications’ of the PI vary somewhat by Agency.

17. You Need Company Facilities*
The research work to be performed by the awardee is to be conducted in:
Company-controlled
Research space
Suitable to do the work proposed
Some work may be done in other facilities
* A Just in Time (JIT) requirement

18. You need Other Resources
Other R&D Resources
Scientific Advisory Board
Commercialization/Business Resources
Company Management
Strategic Partners
Other funding/investors
Regulatory/Reimbursement guidance
Company Management Team
Community Support

19. Virtual Companies are not eligible

20. You must have a Project

21. SBIR/STTR: 3-Phase Competitive Program
PHASE I Feasibility Study
Award Guideline: $150K … varies by Agency … can rise to $225K
Duration: 6 months (SBIR)/12 months (STTR)
PHASE II Full Research, R&D to Prototype
Award Guideline: $1M (SBIR)/$1M (STTR) … varies by Agency … can rise to $1.5M, or more with waiver
Duration: 2 years
PHASE III Commercialization
Subsequent investment to achieve commercialization, or sale
Use of non-SBIR/STTR Funds

22. Phase III: Commercialization (no federal SBIR/STTR $$)
The Basics of SBIR: 3 Phases
3 Years, ~$1,150,000+
Phase I:
6 Months, $150K
Phase II:
2 Years, ~$1,000 K+
Phase III: Commercialization (no federal SBIR/STTR $$)

23. The Project Based on technological innovation:
What is the technological innovation that will enable the product to achieve the desired performance?
Is there risk of failure?
Will the product be revolutionary or evolutionary?
Not for commercializing technology that has already been developed, or one with low risk that only needs capital

24. SBIR/STTR is Hybrid R&D
In Contrast to Basic Research
Hypothesis-driven but it’s not an open-ended investigation of a technical field
Principal Investigator is key, but only one member of a multidisciplinary team
Knowledge or technological capability is not an end in itself but a step toward a specific product or service

25. You must have a Product

26. There must be a Product SBIR is always Product Development
What is the intended product?
What applications will it be used for?
Who will use it?
What has been done to date?
How much is left to do?

27. SBIR/STTR is Hybrid R&D
In Contrast to Product Development
Despite the well-defined, ultimate product or service, the project does not follow a typical step-by-step development path
Funding for product development is contingent on a “proof-of-concept”/feasibility

28. You must have Commercial Potential

29. Commercialization Questions
Credible Commercialization Strategy
Is there a market identified?
Has a competitive analysis been done?
How will the company generate revenue?
What additional resources will be required to achieve commercialization?
Have sources of those resources been identified?
Strategic Partners
Sources of capital

30. Commercialization
There is no such thing as the “Build it and they will come” Business Model

31. Know the Difference between SBIR & STTR

32. SBIR/STTR Program Overview
Small Business Innovation Research (SBIR): a set-aside program created by Congress in 1982 for small business concerns to engage in Federal R&D -- with potential for commercialization. Small Business Technology Transfer (STTR): a set-aside program created by Congress in 1992 to facilitate cooperative R&D between small business concerns and U.S. research institutions -- with potential for commercialization.
3.2%
FY2018
0.45%
FY2018
SR: Updated to reflect FY2016

33. SBIR vs. STTR
Relationship with a non-profit research institution:
SBIR allows but does not require the involvement of a non-profit research institution
STTR requires the involvement of a non-profit research institution
The Applicant Organization is always the Small Business.

34. SBIR vs. STTR: Who does the work?
‘Outsourcing’ limits:
SBIR: < 33% in a Phase I and 50% in a Phase II
STTR: > 40% at small business and > 30% at partner non-profit research institution
The applicant is always the small business

35. SBIR vs. STTR: Where is the PI?
Principal Investigator rules:
SBIR: PI at least 51% employed at small business
STTR: At small business or non-profit research partner. Must have an ‘official relationship’ with the small business and at least 10% effort on the project*
*Except for NSF

36. How do you choose ? Does the agency offer STTR?
Is the topic offered under both mechanisms?
If yes to both above:
Do a resource inventory – people and facilities
What do I have?
What do I need?
Where will the work be done?
Where will I fill the gaps?
Talk to the Agency

37. SBIR vs STTR

38. Federal SBIR/STTR Agencies Funding Life Sciences
National Science Foundation
Department of Defense
USDA
Education
NASA
National Institutes of Health …

39. National Institutes of Health

40. NIH Mission NIH Mission
To seek fundamental knowledge about the nature and behavior of living systems and the application of that knowledge to enhance health, lengthen life, and reduce illness and disability.

41. 27 Separate Institutes & Centers (IC) each with different:
NIH is organized into:
27 Separate Institutes & Centers (IC) each with different:
missions & priorities
budgets
ways of deciding which grants to fund
NIGMS
International Center
Clinical Center 42

42. NIH SBIR/STTR Budget Allocations FY2017
3.2% SBIR $814M
0.45% STTR $114M
Total FY17 $928M

43. Finding a home for your project

44. Is NIH Interested in my project?
Search NIH Reporter
Read Omnibus Solicitation Research Topics and Program Descriptions Document
Identify relevant NIH Institute/Center
Contact primary SBIR/STTR program director
Confirm interest and relevance

45. NIH Reporter

46. NIH RePORT

47. NIH Reporter

48. Who funds what I do?
Searched “BALANCE”, SBIR/STTR Projects

49. Searching Reporter

50. NIH SBIR/STTR Omnibus Solicitation

51. Program Descriptions and Research Topics

52. Program Descriptions and Research Topics

53. Program Descriptions and Research Topics

54. Program Officer/Research Contact

55. https://sbir.nih.gov/engage/ic-contacts

57. How do you introduce your project?
The “Elevator Pitch”
Imagine you are in an elevator with someone who is important to your business.
You have from the time you both get on until the time he/she gets out to convince that person that yours is a great business opportunity and warrants that person’s involvement.
Typically, elevator pitches are < 60 seconds in length.

58. Who are you talking to? Investor Customer Business partner
1/30/2018
Who are you talking to?
Investor
Customer
Business partner
Key politician
Someone who can help you network
Any other person who may be useful to help you realize your business opportunity, including:
SBIR/STTR Program Manager

59. The Formula - #1 WHAT you do WHOM you serve HOW you deliver
1/30/2018
The Formula - #1
WHAT you do
WHOM you serve
HOW you deliver
BENEFITS for clients
2 Sentences
Sentence #1: WHAT are you doing, and WHO are you doing it for.
Sentence #2: HOW are you delivering what the customer needs, and name the key BENEFIT or intended result.

60. The Formula - #2 FOR whom WHO need THE product THAT produces
1/30/2018
The Formula - #2
FOR whom
WHO need
THE product
THAT produces
Unlike competitors
OUR PRODUCT is different
2 Sentences – fill in the italicized prompts below
Sentence #1: FOR target customer, WHO statement of need, THE product name IS A product category, THAT statement of key benefit.
Sentence #2: UNLIKE, primary competitor or product, OUR PRODUCT statement of primary differentiation.

61. 1/30/2018
Example
For researchers and entrepreneurs who are seeking to launch a company, the SBIR/STTR program is a federal grant mechanism that provides non-dilutive grants and contracts to small businesses at the rate of $2.7B annually.
Unlike loans and other types of equity investments SBIR/STTR provides research and development funding that neither needs to be repaid, nor requires you to relinquish ownership in your company.

62. Example for an SBIR project
For manufacturers of body-worn electronic medical devices who want to offer a comfortable, cost effective form factor to measure vital signs continuously, our proposed solution, Form-Flex, is a printed electronics technology that provides the comfort of a flexible bandage with the performance of costly standard electronics. Unlike traditional electronic device formats that are heavy and rigid, Form-Flex will be both comfortable and cost-effective, encouraging greater day-to-day patient compliance.

63. Join the 2019 SHARPhub Cohort Program

64. What is the SHARPhub Cohort Program?
More intensive, personalized assistance for participants launching or advancing their companies
1:1 expert SBIR/STTR proposal development consulting
Weekly webinar series on SBIR/STTR proposal elements
MicroGrants up to $5,000 to assist with customer discovery and startup costs
Assistance with commercialization planning
Mentorship, 1:1 coaching, guidance and other practical resources
The path to market starts here!

65. Who can participate in 2019 Cohort cycle?
Evaluation criteria considered:
Attendance at SHARPhub or equivalent training
Startup School
Intensive SBIR/STTR Proposal Prep for NIH (3/1/2019)
Commercialization Planning for SBIR/STTR (4/12/2019)
Biotechnology innovation that’s developing or has been developed into a startup company
Company headquarters & R&D in Kansas
Fit of the technology to NIH SBIR/STTR requirements

66. How do I apply? Deadline for application: March 5, 2019
SHARPhub cohort application:

75. What is the Cohort timeline?
Key dates:
March 1: NIH SBIR/STTR Intensive Proposal Preparation workshop
March 5: Deadline for Cohort applications
Week of March 11: Cohort applicant phone interviews
March 20: Cohort acceptances communicated
March 21: Applications open to Cohort participants for MicroGrants
Applications continuously accepted until funds are depleted
April 12: NIH SBIR/STTR Commercialization Plan Preparation workshop
QUESTIONS? Contact Julie Nagel PhD:

76. Sustainable Heartland Accelerator Regional Partnership (SHARP) Hub
Partnership of the Central IDeA Region Institutions based in Kansas City Focused on mentoring, training and networking to help innovators accelerate the transfer of biomedical technology to the commercial market.