Stacy L ChinFounder, KeepYourEquity · I get the government to write you checks

Biggest Red Flag in SBIR/STTR Grant Writing

20 May 2026 · 1 min

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In this advisory segment, the speaker warns that grant‑writing firms that charge low upfront fees but high incentive (success‑based) fees often signal inexperience or misaligned incentives. High‑quality firms typically require substantial upfront work and therefore charge appropriate fees. The low‑upfront model can lead to the work being delegated to junior writers who lack deep knowledge of the SBIR/STTR landscape. While rare exceptions exist—where a firm bets on a client after rigorous screening—these are uncommon. The overall message is that a seemingly low barrier to entry should prompt scrutiny of the fee structure and the firm’s expertise.

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Here's another red flag to watch out for in the grant writing industry: low upfront fees paired with high incentive fees. Sometimes these models signal inexperience or misalignment in incentives. High-quality grant writers and consulting firms rarely operate this way because they know strong work in the space requires significant time, expertise, and upfront effort that can't be entirely deferred to a future outcome. What often happens instead is that these engagements often get offloaded to junior writers or individuals who aren't deeply as familiar with the grant writing landscape. While there may be rare exceptions where a firm takes on a bet on a client, those situations often involve extremely rigorous through screening to ensure that the project has a high likelihood of success. So if the barrier of entry feels low, you should be asking why.