Support letters boost SBIR proposals by proving the problem is real and the market wants your solution. NSF recently banned them from Phase I applications, so you'll need a different strategy to show credibility and validation.
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Startups need to provide letters of support in their SBIR applications because they add great credibility and validation for the proposed project. And these letters can demonstrate strong backing from industry experts or key opinion leaders, potential customers, and key stakeholders. And although most SBIR applications make these letters of support optional, I like to consider them as a mandatory component of the proposal because they are a great way to emphasize that the problem you're trying to solve is real and that your solution has market validation and can make a great impact if successful. Now, it is important to note that there has been a lot new changes with this new NSF SBIR solicitation within their Phase I application, where they're not accepting letters of support for any Phase I SBIR or STTR proposals.