Stacy Chin explains how startups can partner with academic researchers to strengthen SBIR and STTR grant applications. The key difference: SBIR requires less than one-third outsourced work, while STTR requires more than one-third. Five steps include identifying aligned researchers, defining clear roles, getting university approval, coordinating budgeting, and preparing a subcontractor agreement.
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Have you ever considered partnering with an academic researcher to pursue an SBIR or STTR grant? Because there may be times when engaging with an academic subcontractor can give your application a competitive leg up to secure non-diluted funding. So in this video, I'm going to share why you may want to partner up with a research university to apply for SBIR or STTR grant opportunities and the extra steps required for your application. Let's dive right in to find out how to make the most out of these partnerships. Hey guys, welcome back to the channel. I'm Stacy Chin from keepyourequity.co, and our mission is to startups secure non-dilutive funding. We specialize in science tech startups by helping them to secure funding from federal programs, those from the SBIR and the STTR. If you'd like to learn more about these programs, I'll leave a link to another video in the description below. And we also advise other private and public businesses as well as NGOs in navigating the federal grants and contract opportunities. So pursuing collaborations between startups and academia can be a great way to foster innovation and technological advance. And for that reason, startups may want to team up with an academic researcher to pursue SBIR and STTR grants. And these federal programs also encourage such collaborations, such as a way to transfer technologies from the research laboratories to the marketplace by bridging the gap between basic science and commercialization. So if you are a startup founder trying to figure out whether or not to pursue this path, here are some reasons for your consideration. First, academic institutions offer an access to research facilities and intellectual resources that can enhance your research and development capabilities of a small business. Second, this provides startups with an opportunity to work with academics with specialized expertise, which can elevate the technical merit of the grant. And third, these collaborations also enable startups to tap into a wider network of research talent. I know many startups have hired graduate research students directly from their collaborative lab after their training was completed. And finally, partnering with a reputable academic institution can also give startups with credibility to attract further investments and partnerships. Now, if you do decide to partner with an academic researcher to pursue one of these SBIR or STTR grants, likely they'll be added on as a subcontractor, especially if they'll be actively involved in the proposal efforts and contributing intellectually to the R&D strategy. A subcontractor refers to an external organization, usually a U.S. research hospital or academic university, that the grant recipient— typically a small business— contracts to perform a portion of the work outlined in the grant. And this subcontracted work is usually specialized or require expertise, facilities, or resources that the startup does not have currently in-house. Now, if the startup decides to outsource less than one-third of the proposal efforts to the subcontractor, you may likely pursue an SBIR grant opportunity. However, if the outsourced work requires more than one-third of the effort, then you may want to consider pursuing an STTR opportunity instead. I have another video that goes over what the differences are between SBIR and the STTR, so make sure you check it out in the description below. Now, if you do decide to work with an academic subcontractor within your SBIR/STTR grant, there are several additional considerations that you must include in your application. So in the next part of this video, I'm going to walk you through the 5 key considerations to make sure all the paperwork is there to prepare a really strong and competitive grant. But before we get into it, I have one huge favor to ask you. We learned that 90% of you viewers have not yet subscribed to this channel, and my goal is to get that down to 70%. So if you find any of these tips, resources, or videos helpful, I would greatly appreciate it if you like this video video and subscribe to this channel because it helps us out a lot. And by doing so, we'll continue working hard behind the scenes to empower you startup founders with the necessary knowledge to raise non-diluted funding so that we can support your journey towards commercialization. All right, now let's jump into it. Now, the first thing you want to do is to identify an academic researcher who shares your startup's vision and is excited to collaborate with you on your SBIR or STTR project. Look for experts whose skills complement your project and shows genuine interest in partnering with you. Foster open communication, share your startup's objectives, and alignment with the researcher's interests. Next, outline the roles and contributions of each party involved in the grant. Develop a game plan to define the technical objectives or specific aims. Strategize how to allocate your R&D efforts effectively. And by outlining these responsibilities in advance, you can then optimize your R&D strategy to maximize your chances of achieving your project's goal. So once you both hash out a game plan, inform your academic collaborators, research university, institution, or hospital about your intentions to pursue an SBIR or STTR grant. You simply cannot bypass a protocol walls of the university and cut your academic partner a check if awarded. That will be considered as a conflict of interest and a huge no-go. And that's because very likely your academic collaborator will be using the university's resources and facilities to carry out the project. So to navigate that effectively, make sure to collaborate with their university's grants office to ensure transparency and compliance to the relevant policies and procedures to prevent any conflicts of interest. Next, work with the academic collaborator and their grants management department to navigate any paperwork, budgeting requirements, and documentations for your SBIR/STTR application. Each university operates under their own internal systems when engaging with startups seeking SBIR/STTR grants. Therefore, understanding these processes will ensure compliance to increase your chances of securing these approvals. Finally, ask your academic collaborator and the grants management department for their help in preparing a subcontractor budget and budget justification. And this should be separate from your own startup's own budget and budget justification. And you also want to request a letter of intent, which is a document that helps to confirm a consortium agreement from them. And this is a mandatory document to include in your SBIR/STTR application if you are proposing a subcontractor agreement. Usually each university has their own format and template that outlines the terms of the subcontractor arrangement, and this letter is usually the last thing they're going to prepare for you that you'll need to include in your SBIR/STTR application once they have reviewed all the paperwork internally and approved the academic collaborator's budget proposal efforts and level of engagement. And with that, thank you so much for watching till the end of this video. I hope you found these tips helpful in navigating the complexities when partnering with an academic researcher and securing SBIR or STTR grant applications. If you haven't done so, I would greatly appreciate if you like this video, subscribe to this channel, and don't forget to check out our website at keepyourequity.co for more resources, advice, templates, and courses to help support you in your non-dilutive fundraising journey. Thank you so much for watching to the end of this video, and I'll see you in another one very soon.
