SBIR/STTR Program

By: William A. Price Attorney at Law www.growthlaw.com 1-800-630-4780

Open/Released SolicitationsProgram Release Dates Accepts ProposalsClosing DatesDOT SBIR4 Apr 2011 4 Apr 2011 13 Jun 2011EPA 15 Mar 2011 15 Mar 2011 3 May 2011NSF SBIR 7 Mar 2011 10 May 2011 10 Jun 2011DoD STTR 2011.A 27 Jan 2011 28 Feb 2011 30 Mar 2011HHS/NIH SBIR/STTR (Grants)Non-AIDS Related TopicsPHS 2011-2 Omnibus 24 Jan 2011 5 Mar 2011 5 Apr 20115 Aug 20115 Dec 2011

HHS/NIH SBIR/STTR (Grants)AIDS Related Topics OnlyPHS 2011-2 Omnibus 24 Jan 2011 5 Mar 2011 7 May 20117 Sep 20117 Jan 2012

NIH SBIR/STTRSpecial FundingThe NIH frequently offers special SBIR/STTR grant opportunitiesthat are not part of their regular omnibus SBIR soliciation.View New & Current NIH SBIR RFAs & PAs

Future Solicitations** dates are subject to change gray cells denote estimated datesRelease dates after May 31, 2011are subject to SBIR Reauthorization

Program Release DatesAccepts Proposals Closing DatesDoD SBIR 2011.2 26 Apr 2011 26 May 2011

to 29 Jun 2011

DoD SBIR 2011.3 28 Jul 2011 29 Aug 2011to 28 Sep 2011

DoD STTR 2011.B 28 Jul 2011 29 Aug 2011 to 28 Sep 2011

SBIR vs STTR

SBIR: 2% of all R&D

Funds Small Business

applicant, US

owned

STTR: 0.5% of all

R&D Funds Small Business

Applicant Partners

With University

Applicant, Uses

Professor/Students

Know Your Customer

Clout And Knowledge Wins These Contests

DOD: Generals and program officersNIH: Doctors on your advisory panelNSF: Scientists in the Research Field

DARPA: Advanced Research Professionals

Agency Links

Dept. of Agriculture: USDA SBIR Home

Page Dept. of Commerce: DOC-NOAA SBIR

Pagese Technical Information Center

MDA SBIR Program Home Page

DTRA-Defense Threat Reduction Agency

Navy SBIR/STTR NGA-National

Geospatial Intelligence AgencyR

Chem-Bio Defense (CBD)

DARPA

More SBIR Agencies, 2011 FY SOCOM-Special

Operations CommandDOC-NIST Home Page

DOD SBIR Home Page

Air Force SBIR/STTR

Army SBIR/STTR

Agency Totals

11 SBIR Agencies 5 STTR Agencies, $2 billion grants for FY

2010

Phases And Grants

Phase I: Proof of Concept: up to $100k Phase II: Proof of use to sponsoring agency:

builds prototype: up to $750k Phase III: Commercialization: Unlimited public,

no private except for R&D

Your Proposal May Be Toast

700-850 Proposals/Solicitation (1500 last time)

15-20% of Phase I proposals funded 40% of Phase II proposals funded: 20% of

these get Phase IIB extensions and supplements to research

Remember, Cronies Win

Find Federal Lab

Researchers/needs Find SBIR review

panel members Find sponsoring

agency retirees/major contractors who need subcontractors

Grant Writing Help

Many Agencies Have Tutorials Many Grant Writing Contractors Many University Sponsored Research

Officers Can Do Budgets

NSF Suggestions

Proposal = Framework for Value Creation The Market: What is the gap or unserved

need in the market? What is the size of the servable market segment?

Customer Benefits: What are the specific/quantifiable benefits for the customers, if the gap/need is filled?

Your Solution What is your solution to fill the gap/need? What is the underlying science? What aspects

are of high technical risk? What are the quantitative success metrics? Do you have preliminary data to indicate

promise?

Your Path To Market

How is your solution better than the competition?

How will you make money by delivering the solution?

What will the commercialization pathway look like?

Your New Venture

How will you undertake the venture? How will you finance the venture? How will

you attract funding beyond SBIR/STTR funding?

Why is your team the most qualified technical AND business wise to undertake this venture?

Alternative Sources of Funds

Purchase Order Financing (Domestic):

3%/month, up to cost of inventory Purchase Order Financing (International):

SBA Guarantee, up to 6 months funded,

SBA loan rates (2% over prime) Accounts Receivable Financing: 80% or

so fundable, 3%/month cost of funds

Biggest Key To Success

Get A Customer!

Possible Customers

Sponsoring Agencies (EG Navy Surface Systems)

Major Component Contractors (after you get some grants, they could buy your company, before, you could be a subcontractor)

Private Industry That Needs A Widget

When Should I Use VC Money?

Juice Loan Rates (10x/2 years payoff) No repayment – they own you So do if you need to sell to the

whole world, and already have

$1 million in sales But wait: if you have that, who needs them?

Answer

Use VC's who have customer contacts Use VC's who have P/E affiliations Use VC's to hire big teams fast, where

partnering can't acquire talent

Alpha To Beta To Funding

SELL IT YOURSELF!

Step One: One or Two Credible Alpha Sites (Customer evangelists – they get it free!)

Step Two: Five $50,000 sales or relationships

(1,000 calls =100 meetings=5 sales. You can do this in a year.)

Result: $1.25 million in sales = Bankable