Stacy L ChinFounder, KeepYourEquity · I get the government to write you checks

The SBIR Funding Opportunity Founders Keep Ignoring

27 Sept 2026 · 1 min

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In this monologue, Stacy L. Chin expresses surprise that many deep‑tech founders are unaware of the Small Business Innovation Research (SBIR) program, which can provide substantial non‑dilutive funding. She argues that founders often jump straight to pre‑seed rounds, raising a few hundred thousand dollars from VCs or angels and surrendering 20‑30% or more of their equity. By contrast, SBIR offers sizable grants that require only a competitive application. Stacy notes that Phase 1 SBIR success rates typically hover between 10% and 15%, but she contends that for truly novel, breakthrough innovations those odds are acceptable. The overall message is a warning and a call to action for founders to consider SBIR as a viable early‑stage financing alternative.

Chapters

I'm so shocked how so many deep tech founders have no idea this opportunity exists. And because of that, they go straight to a pre-seed round to raise a couple hundred thousand dollars with VCs or angels while giving up 20, 30, or even the majority of their company away. Meanwhile, there's so much money just sitting right there for you guys. And now the catch is that yes, you have to apply, and yes, these SBIR programs are wildly competitive. So for instance, Phase 1 success rates can range anywhere from like 10 to 15%. But here's the thing, if you're developing brand new innovation and something that's wildly different, those odds to me aren't really that bad.