In this short advisory talk, Stacy L. Chin urges deep‑tech, hard‑tech, and biotech founders to consider the U.S. Small Business Innovation Research (SBIR) program as a source of non‑dilutive seed capital. She explains that SBIR is a federal initiative that distributes billions of dollars annually to high‑risk, innovative startups, offering up to $2 million in awards without taking equity. Chin cites historic breakthroughs—LASIK eye surgery, 3D printing—that originated from SBIR funding, underscoring its industry‑shaping potential. She notes the program’s competitive nature, with Phase I success rates typically 10‑15% (up to 24% for agencies like the Air Force). To reduce application effort, she highlights the NSF and DOE “project pitch” process that quickly indicates fit. While SBIR isn’t a replacement for venture capital, she positions it as a complementary, low‑cost financing option that many founders overlook, urging them to add it to their fundraising radar.
Chapters
I haven't really seen a lot of people talk about this before, but please tell me you deep tech founders know that the US government gives out billions of dollars to startups every year. If you haven't heard of it, it's called the SBIR program, which is kind of America's seed fund. And this is a federally funded program designed specifically for high-risk innovative projects, kind of like what you're working on. You know, the kind of technologies that VCs call a little bit too risky or too early. And that's why the SBIR program is literally wild. You can actually get up to $2 million of non-dilutive funding, that means giving up 0% of your equity, zero dilution. And this is not some sort of obscure grant or a scam that no one's ever heard before. For instance, the SBIR program funded LASIK eye surgery, it funded 3D printing and other technologies that shaped entire industries, which actually started with this program. But most founders shockingly have no idea this exists, and then they just go straight into a VC or angel round, giving away 20, 30, 50% of their equity for $100 grand, but the money is sitting right there. And yeah, there's a catch. You do have to apply. And yes, this is really competitive. For instance, Phase 1 success rates can hover anywhere from 10 to 15%, but other agencies like the DOW Air Force can hit up to 24%. But here's the thing. If you're building something genuinely innovative, those odds aren't really too bad, especially compared to the odds of landing a VC check right now. And also, really cool thing, NSF and DOE have this process called the project pitch. So you'll know whether your technology is a fit within a couple weeks, and that's helpful so you don't waste months of time writing a full application. Now, I'm not saying the SBIR program is going to replace venture capital, but if you're working in deep tech, hard tech, biotech, or anything else that the US government cares about, the SBIR program should be on your radar, at least in my opinion. Because let's face it, raising startup money is really hard. So why are you making it harder on yourself by ignoring this free capital that's available for you right now?
