Funding Too Good to Be True?

Even though this all sounds too good to be true, there are some checkmarks we have to hit in order to qualify for an SBIR application. The SBIR and STTR program comes in 3 different phases. First is typically Phase I, which is a lot of people are going for the first phase. This is all about establishing feasibility. So typically startups that have some sort of early stage results that need more funding to progress in their R&D might go for a Phase I. And the end of Phase I is to validate, do I have a technology that has commercial potential? And usually you can get anything from $300,000 in non-dilutive funding for a project period of about 1 to 2 years. If you're lucky to get Phase 1, you then progress to Phase 2, where you continue your R&D efforts and to take that prototype or proof of validation and translate that to something that's ready for some sort of commercialization, whether that's a pilot, getting ready for FDA approval, or even just working with a partnership to try and translate that into some sort of commercial market. So you can get anywhere from $1 million to even $2 to $2.5 million of non-dilutive funding in Phase 2 for a project period of 1 or even 2 years. So even though this all sounds too good to be true, there are some checkmarks we have to hit in order to qualify for an SBIR application. First, to qualify for this program, you have to be a U.S. small business. That means the majority ownership has to be at least owned by U.S. citizens or permanent residents. The PI must be primarily employed by the small business upon time of award. Next, these are highly innovative R&D applications, so we don't want to fund market research or anything to test out the market need. It's rather based on R&D for high-risk, high-innovative technologies. And so you also have to be small business, which they define that as company with less than 500 employees. And finally, something really important to note, even though it is strategic to go and apply for many SBIR applications, we cannot get multiple SBIR applications awarded under the same objectives. That's kind of considered double dipping, and that's also illegal.