Deep-tech Founders, check out SBIRs before pursuing VC funding

Stacy L. Chin, who raised $50 million in SBIR grants for deep-tech startups, walks through how to get federal funding before VC. Match your tech to an agency like NSF or NIH, write a Phase 1 proposal around a real problem, and expect 10-20% acceptance rates. Phase 1 grants run $200-500k, Phase 2 up to $2M.
Chapters
I've raised over $50 million of non-dilutive SBIR funding for deep tech startups, and I'm going to teach you how to do that in less than 90 seconds. So if you're building something in AI, robotics, deep tech, or medical devices, and if you hit that same wall, you know, that wall where VCs want proof that your tech works, but that proof costs money that you don't really have, then the SBIR program might solve that issue for you. SBIR stands for Small Business Innovation Research, and this is backed by the U.S. federal government to give out non-dilutive funding for founders developing deep tech innovations. And this SBIR program has funded things like LASIK and the Doppler radar and MRI technologies. For instance, between 2016 and 2025, the National Science Foundation alone has dropped over $2 billion just in deep tech Startups, and those companies went on to attract nearly $30 billion in private follow-on investments. So if you're looking for non-dilutive SBIR funding, here's how to snag some of those dollars and how to win. First, match your technology to the right and appropriate U.S. federal agency. The National Science Foundation funds fundamental groundbreaking research. The Department of War funds defense and dual-use applications. The National Institutes of Health funds healthcare innovations. You know the drill. Second, when you write your SBIR Phase 1 application, make sure it hits these 3 things: a clear technical problem that the agency cares about, a feasible solution that you can deliver in 6 to 12 months, and of course, proof that your team can actually execute the proposal efforts. Third, know your numbers and the odds you have to securing these applications. Most U.S. federal agencies might have SBIR programs with acceptance rates anywhere from 10 to even 20%, but some programs like AFTRS can can hit nearly up to 30% and sometimes 40%. So apply strategically. Phase 1 can get you anywhere from $200,000 to even $500,000 of funding, whereas Phase 2 can even reach up to $2 million. And between those 2 alone, that should be enough runway for you to prove your technology and to de-risk those next steps for those investors. So if I were you, stop waiting for angels or venture capitalists to take a chance on an unproven technology. Use SBIR If you're interested in more content like this, make sure to follow along and share this post with another founder so you both can learn how to keep your equity throughout your fundraising journey.
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