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SBIR/STTR ProgramWhat it is and why you should care

Constanza PachonPresident & COO Larta Institute

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A mission-driven accelerator for technologies

that feed, fuel, and heal the world.

Larta Institute est. 1993

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Larta Institute est. 1993

• Exclusive Commercialization partner for the SBIR/STTR programs at NIH, USDA, NSF, NIST, and NOAA.

• 2016 Tibbets Award winner for excellence in support of the SBIR/STTR Program.

SBIR/STTR program support

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CAPS• Commercialization

Accelerator Programs

Events• Ag Innovation Showcase

• GAIN

Outreach • 55 blog stories/year

Network

• 100+ mentors

• 60+ Industry advisors

• 350+ companies/year

10,000+ENTREPRENEURS ASSISTED ACROSS TECHNOLOGY SECTORS

700+STRATEGIC INTRODUCTIONS FACILITATED ANNUALLY

Larta Institute est. 1993

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The SBIR/STTR Program

Small Business Innovation Research (SBIR)

Small Business Technology TRansfer(STTR)

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SBIR/STTR Program

• A component of the U.S. Federal Extramural R&D (~$75B/Y)– Federal Labs– Universities– Large Businesses– Small Business (~2.5B/Y)

What is SBIR?

SBIR/STTR

• SBIR

– 3.2% set aside

– 11 agencies

• STTR

– 0.45% set aside

– 5 agencies DOD

HHS

DOENASA NSF All

Others

Source: DOE SBIR Office

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SBIR/STTR Program

Increased

• use of small businesses to meet federal R&D needs

• technological innovation

• commercialization of federally-funded R&D

• innovation/entrepreneurship by under-represented

groups

• tech transfer between small business and research

institutions

Program Goals

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SBIR/STTR Program

How SBIR works

Phase I

• PROOF OF CONCEPT

• Up to $225,000

• 6-12 months

Phase II

• PROTOTYPES OR PROCESSES

• Up to $1,500,000

• 2 years

Phase III

• COMMERCIALIZATION

• non-SBIR/STTR funds

• A highly competitive

process

• A Commercialization

Plan is key to

transition from PI to

PII

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SBIR/STTR Program

Why you should care

Grants require

• No repayment

• No equity dilution

• No cost sharing

IP Covenants

• Grantee retains patent rights

• Royalty-free license for Federal

Government

Access to:

• Seed funding for high-risk

projects

• Credibility when seeking

funding or partners

• Commercialization

Assistance Programs

(CAPs)

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SBIR/STTR Program

• A for-profit business located/operating in the U.S.

– If a joint venture, <50% participation by foreign entities

– >50% owned by VCs acceptable for some opportunities

• >50% owned by citizens/ permanent residents of the

U.S.

• ≤500 employees, including affiliates

• + for STTR

– collaboration with a research institution

– Minimum 30% of R&D performed by research institution

Eligibility

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SBIR/STTR Program

How to apply

Assess Fit

• Eligibility

• Agency topics

• SBIR/STTR conference

• Agency PMs

• Agency notices

• Internal resources

Comply w/ Mechanics

• Registrations

• Instructions

• Deadlines

• Internal accounting system

Write Proposal

• Project Narrative

• Budget

• Key Personnel

• Commercialization Plan

• Data Management Plan

First you have to have commercialization in mind

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SBIR/STTR Program

How to apply

Assess Fit

• Check Eligibility

• Review Agency topics

• Attend SBIR/STTR conference

• Speak with agency PMs

• Subscribe to agency notices

• Align internal resources

WWW. SBIR.GOV

Personnel/time

commitment

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SBIR/STTR Program

How to apply

Comply with Mechanics

• Complete registrations

• Abide by agency

instructions

• Meet Deadlines

• Set up internal accounting

system

– EIN <1 w

– DUNS <1 w

– SAM ≤3 ws

– SBA 1 d

– Grants.gov ≤2 ws

– Agency-specific site ≤2 ws

– Content

– Formats

– LOT & Proposals

– Cost accounting/timekeeping

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SBIR/STTR Program

How to apply

Write a Winning Proposal

• Project Narrative

• Budget

• Key Personnel

• Commercialization Plan

• Data Management Plan

– Unmet need

– Innovative

– Commercial potential

– Patentable

– Business model

– Path to market

– Justifiable budget

– Right expertise and

experience

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SBIR/STTR Program

Most common pitfalls

Assess Fit

• Responding to wrong agency/topic

• Underestimating time and resources needed

• Not filling internal gaps

Comply w/ Mechanics

• Starting process not early enough

• Letting registration lapse

• Not reading instructions thoroughly

• Submitting on the same day

Write Proposal

• No statement of need

• Untested hypothesis

• Underestimating Commercialization plan

• No testimonials /LOS

• No graphics or charts

• No pro forma financials

Thank you!

Constanza Pachon, President and COOcpachon@larta.org