In this solo presentation, federal grants and contracting consultant Stacy Chin explains how federal contracting can provide far larger non‑dilutive funding than the SBIR/STTR programs—up to $50 million per contract—by turning the U.S. government into a direct customer for R&D work. She contrasts the modest, flexible SBIR/STTR grants (≈$1‑2 M) with the high‑stakes, high‑reward world of federal contracts, which demand proven capability, strict compliance, and long sales cycles. Chin outlines the five critical considerations for founders seeking federal contracts: (1) contracts favor more established companies with existing infrastructure; (2) extensive compliance and regulatory burdens (FAR, cybersecurity, audits, financial reporting); (3) intense competition requiring a meticulously crafted proposal narrative; (4) a protracted, multi‑stage sales process that can span months to a year; and (5) the strategic importance of building relationships with agency decision‑makers through networking, industry days, and direct outreach. She illustrates the upside with a real‑world case—a biotech client that secured a $25 M ARPA‑H contract—and invites viewers to leverage her consulting services at KeepEquity.co for templates, courses, and hands‑on support.
Chapters
If you've been following this channel, you'll know by now the founders can capture up to $2 million of non-diluted funding from the SBIR and the STTR program. But what if I told you there is a way to get even more money? I'm talking $5 million, $10 million, and even up to $50 million of non-diluted funding, all while keeping your equity. I know, sounds crazy, but it is possible, and it is through something called federal contracting. That's right, folks, welcome to the big leagues. In this video, we're diving into the world of federal contracting. I'm gonna break down the top 5 things you need to know when chasing those huge dollar amounts, and plus I'll share some real-life tactics I even use for my biotech client who landed a $25 million ARPA-H federal contract. So if you're ready to jump into the big leagues and go from $2 million all the way to $50 million, stick around and let's dive right in. Hey guys, welcome back to the channel. I am Stacy Chin, a professional federal grants and contracting consultant who has helped to raise over $40 million $1.5 billion of non-diluted funding for startups developing innovations in healthcare, climate, and defense. So federal contracting is like unlocking the next level of funding for R&D companies. Instead of just getting grants to fund your own research, federal contracts are a way for the government to pay you directly to deliver specific R&D work that they urgently need. Think about it as a way of the government becoming your biggest customer. Agencies like the Department of Defense, NASA, and the Department of Energy often use federal contracts as vehicle to deliver new innovations in cutting-edge areas, whether it's developing new technologies, testing prototypes, or running critical research projects. And the best part? You're not just looking in the $2 million range like the SBIR grants. We're talking big money, contracts even worth up to $50 million. So federal contracting is like the ultimate opportunity for R&D companies to partner with the government to solve big problems while massively scaling their businesses. Now, the biggest difference between federal contracting and going for after those SBIR and STTR grants comes down to the scale of the opportunity. With the SBIR and STTR grants, you're getting funding to support your projects and you're the one calling the shots on the research direction. You've got the flexibility and these grants usually cap around $1 to $2 million, making them an excellent opportunity to get non-dilutive funding for early-stage R&D companies. But if you're ready to play in the big leagues, federal contracting is where it's at. The catch? There is less flexibility. You're on their timeline, strict deadlines and deliverables. But if you're ready to scale and take on bigger projects, then federal contracting is the way to go. But just be aware you are stepping into a realm that requires a higher stakes and more structured game. So if I have piqued your interest in this non-dilutive funding world, in the next part of this video, I'm going to go over the 5 things you need to know when trying to go after those big federal contracts. And if you're able to land one of these contracts, they can become a huge game changer for you and your business. But there's some nuances that you have to be aware about that could be the difference of whether you land this massive deal or just end up missing out. So with that, let's dive right in. Now, the first thing you need to know when going after those federal contracts is that they're usually structured and set for more established companies. Why? Because the government is looking for contractors who can handle large-scale projects. Meet strict deadlines while delivering specific and often complex results. Federal contracting can also come with a ton of oversight and regulations that you have to follow, so that they're looking for companies with that experience and infrastructure already in place so that they have all the resources to back that up. But that doesn't mean smaller companies can't go after those big opportunities. But just know that if you're new into this game, these federal contracts will require a bigger lift. Think of it this way: federal contracting is when you're stepping into the big leagues and they're expecting you to have a proven track record and the ability to scale and deliver on time. Which leads to our second consideration, in which federal contracting requires a lot of compliance and regulations. When you secure a federal contract, there's a whole new level of accountability, financing, and paperwork that you have to deliver. And there are also strict rules on how you manage the contract spend the funds, and then report your progress. Things like the Federal Acquisition Regulations, or FAR, and other compliance measures means that you have to stay on top of your game, both on the legal and financial and even maybe administration side. And this includes everything from cybersecurity requirements to financial transparency and audits. And if you don't comply to those regulations, you might risk penalties or even worse, losing the contract overall. So before jumping in, make sure your company is ready to handle the added layer of complexity and oversight that comes with federal contracting. Our third consideration when going after federal contracting is to get ready for the intense competition. When going after federal contracts, you're not just competing with other small businesses, but often with other medium and even larger corporations with extensive experience. So to stand out, your proposal has to be on point. And this is important to show the government as to why your solution is the best one out there and how you can deliver the best results if rewarded. When preparing these applications, it's all about how to strategically position your narrative to show the government that you can deliver on time, deliver proven results, and to convince them that you will bring your A-game if you were to get awarded these federal contracts. A lot of work has to go into these applications to best differentiate yourselves from the competition. So if you're looking for help on how to best do that, make sure to reach out to us at KeepEquity.co and then we'll have a discussion to learn how we can best help you and support you in your federal contracting efforts. Another thing to know when going for these federal contracts are the long sales cycle. This isn't a quick game where you go and prepare a proposal and submit it to get a contract next week. Nope, we're talking months, sometimes even a year or more, from preparing your initial contract to when it's even awarded. And the process usually involves multiple steps. Usually there's a pre-solicitation, proposal submission, reviews, negotiations, and then waiting for the final decision. So you'll need the patience and the necessary resources to keep running your business during that timeframe. It's all about playing the long game when going after these federal contracts. So make sure you're ready to wait it out because the payoff can be huge. But you have to stay committed throughout the entire long process. And finally, when it comes to federal contracting, building relationships with governmental agencies can be a total game changer. This game is not about just writing, preparing, and then submitting a killer proposal. It's all about getting on the radar on the key decision makers behind the scenes. You can think of this as networking in any other business. You need to attend any industry days, reach out to contracting officers, and engage with agency representatives to best understand their specific needs. The more familiar they are with you and your company, and especially your capabilities and team, the more likely they will think of you when a contract opportunity comes up. And these relationships are so important. To help companies gain the necessary insights as to what the agencies are looking for. And this will give you a huge advantage over your competitors who are just submitting blind proposals. So in the federal contracting world, who you know can just be as important as what you know. So get out there and start building those connections. And with that, thank you for watching to the end of this video. If you found any of these tips helpful, please hit the like button and subscribe to this channel so that you can learn new ways to keep your equity throughout your fundraising journey. And also don't forget to check out our website at keepyourequity.co. We want resources, templates, courses, and advice so that you can secure non-diluted funding. Thank you so much for joining me today, and I'll see you in a video very soon.
