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

Urgent Funding Needs: Here's Why SBIR Grants Might Not Be Your Best Bet!

18 May 2023 · 1 min

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In this advisory segment, Stacy Chin explains that pursuing SBIR (Small Business Innovation Research) funding demands a lengthy, resource‑intensive application process and faces intense competition. She argues that startups with limited staff, time, or capital may find the effort disproportionate to the potential payoff. Consequently, she recommends that such companies prioritize alternative financing options that better match their available resources and timelines rather than investing heavily in SBIR applications.

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Pursuing SBIR funding can be a time-consuming and resource-intensive process. Applying for these grants can take anywhere from months at a time and also requires significant efforts to prepare a really strong application. Additionally, the competition is fierce, so there's no guarantees that you will get SBIR funding even after your first, second, or third submission. So if your startup is stretched really thin and is short on time and resources, then pursuing SBIR funding may not be feasible for you and your startup. And this is especially especially true if you are a small startup without that many employees or resources to fully dedicate the time and effort needed to pursue these applications. So instead of spending all your time and resources applying for SBIR funding, it may be more productive to focus on other funding sources that might be better aligned with your startup's available resources, times, and needs.