1. Dr. Lisa R. Sproul Hoverman State of Indiana Indiana Procurement Technical Assistance Center (PTAC) Office of Small Business and Entrepreneurship (OSBE)

2. Session Overview Introduction Goals of the SBIR/STTR Program Indiana SBIR/STTR Program Services Indiana Matching Funding for SBIR/STTR Awards Review Q & A

3. Introduction Who we are: Indiana Procurement Technical Assistance Center part of Indiana Office of Small Business and Entrepreneurship (OSBE), a state agency g under the Lieutenant Governor’s office Our purpose is to generate employment and improve the general economic condition of the state by assisting Indiana companies including those eligible for preferential consideration in obtaining and performing under local, state and federal government contracts SBIRs/STTRs are federal government grants and contracts that fall under this purpose

4. Introduction – SBIR/STTR SBIR (often pronounced ‘esber’): Small Business Innovation Research grant or contract STTR (often pronounced ‘ester’): Small business Technology Transfer grant or contract www.sbir.gov

5. Introduction to SBIR/STTR Federal SBIR/STTR program is a highly competitive program – administered by SBA encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) with the potential for commercialization. Competitive awards-based program, SBIR/STTR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. Funding is over 2 Phases, Commercialization is Phase III

6. Goal of the Federal SBIR/STTR Program Meet Federal research and development needs Increase private-sector commercialization of innovations derived from Federal research and development funding Stimulate technological innovation Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged persons

7. History of the SBIR/STTR Program Created by Roland Tibbetts at the National Science Foundation and signed as a Federal wide program in 1982 by Ronald Reagan SBIR programs have awarded over $40 billion to research- intensive American small businesses The 450,000 engineers and scientists involved are one of the largest STEM talent concentrations in the world 11 Federal Agencies participate annually in program

8. The Current SBIR/STTR Programs Small Business Innovation Research (SBIR) A set-aside program for small business to engage in Federal R&D – with potential for commercialization 2.9% of Federal agencies Extramural R&D budgets greater than $100M per year (FY 2015 ~ $2.0-2.5 Billion in summation of 11 participating agencies). Growing to 3.2% by 2017. Small Business Technology Transfer (STTR) A sister set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions – with potential for commercialization. 0.35% of the extramural research budget (>$250 million) for all agencies with a budget greater than $1B per year. Growing to.4% by 2017. QualcommSymantec iRobotGenzyme Nimble Systems NanoMech Lift LabsAdaptec Ecovative Design Children’s Progress Inc JENTEK Sensors SQUID SBIR/STTR Success Stories

9. Milestone-Driven Award Process Phase I | Feasibility Study or Prototype ~$150 thousand and 6 months Phase II | Full Research and Development Effort ~$1 million and 24 months Phase III | Commercialization Effort Private and Non-SBIR Allocated financing

10. Introduction to SBIR/STTR - 11 Funding Agencies SBIR + STTRSBIR Only* Department of Defense (DoD)Department of Agriculture (USDA) Department of Energy (DoE)Department of Commerce – National Institutes of Standards and Technology (NIST) Department of Health & Human Services (HHS)Department of Commerce – National Oceanic and Atmospheric Administration (NOAA) National Aeronautics & Space Administration (NASA)Department of Education (ED) National Science Foundation (NSF)Department of Homeland Security (DHS) Department of Transportation (DoT) Environmental Protection Agency (EPA)

11. FY 2014 in total ~ $2.4 Billion Obligated SBIR  4805 Total Awards  Phase I Awards | 67% of Awards | 26% of Funds | Average Size $158,304  Phase II Awards | 33% of Awards | 74% of Funds | Average Size $919,943  23% to women-owned, minority-owned or HUBZone-located small biz  2.5% pre-2011 | 3.2% by 2017 | Floor NOT Cap STTR  706 Total Awards  Phase I Awards | 70% of Awards | 33% of Funds | Average Size $189,530  Phase II Awards | 30% of Awards | 67% of Funds | Average Size $862,820  20% to women-owned, minority-owned or HUBZone-located small biz  0.3% pre-2011 | 0.6% by 2017 | Floor NOT Cap 11 SBIR & STTR in Brief Quick Stats Evaluation Phase I or II Award Solicitation Topics Proposal Submission Typical Application Process

12. Agencies with SBIR and STTR ProgramsBudget Department of Defense (DOD)$ 1.070 B Department of Health and Human Services (HHS), including the National Institutes of Health (NIH) $797.0 M Department of Energy (DOE), including Advanced Research Projects Agency – Energy (ARPA-E) $206.1M National Aeronautics and Space Administration (NASA) $ 180.1 M National Science Foundation (NSF)$176.0 M Agencies with SBIR ProgramsBudget U.S. Department of Agriculture (USDA)$20.3M Department of Homeland Security (DHS): Science and Technology Directorate (S&T) and Domestic Nuclear Detection Office (DNDO) $17.7 M Department of Commerce: National Oceanic and Atmospheric Administration (NOAA) and National Institute of Standards and Technology (NIST) $8.4M Department of Transportation (DOT)$7.9 M Department of Education (ED)$7.5 M Environmental Protection Agency (EPA)$4.2 M Estimated SBIR/STTR Budgets by Agency, FY2015 ~ $2.5 B in FY15 across all agencies 23 Sept 2015

13. Agencies are different Grants can be topics which you must respond to DoD, DOE, USDA, NASA, NOAA, and others Grants can be principal investigator led NIH, NSF, USDA, Dept. ED, others Grants have very different names and the end vehicle for giving you money may be a contract! Solicitations, Funding Opportunity Announcements (FOAs) and more

14. Review of the Introduction SBIR/STTR enables small businesses (SBs) to explore new technologies by providing the incentive of profit from commercialization Including Indiana small businesses in the Nation’s R&D arena, stimulates high-tech innovation in Indiana’s economy Indiana gains entrepreneurial spirit as it meets specific Federal R&D needs

15. Ideal Source of Funding for Commercialization Non-Dilutive vs. Debt Equity www.listonberries.com

16. Session Overview Introduction Goal of the Indiana SBIR/STTR Program Indiana SBIR/STTR Program Services Indiana Matching Funding for SBIR/STTR Awardees Review Q & A

17. Why State support for SBIR/STTR? SBIR/STTR Funding is largest source of seed funding for technologically innovative start-ups in the U.S. Indiana is incredibly underserved, despite our manufacturing history: IN has ~1115 SBIRs since 1983 CA has 31,247 IL has 2703 KY has 479 MA has 20,558 MI has 3121 MO has 797 OH has 5518 TN has 1253 WI has 1446 SBIR/STTR Funding is $1-3M over 2-3 years, this spans 3 Phases. Can be incredibly important source of funding for IN start-ups!

18. Snapshot Across the US for the Past 4 Fiscal Years Top total award dollars went primarily to 10 states: CA, MA, VA, MD, NY, CO, TX, PA, OH and FL

19. Goal of the IN SBIR/STTR Program Stimulate technological innovation in the IN private sector Strengthen the role of small Indiana businesses in meeting the Federal R&D needs Increase commercial application of Indiana Federally-supported research

20. Session Overview Introduction Goal of the Indiana SBIR/STTR Program Indiana SBIR/STTR Program Services Indiana Matching Funding for SBIR/STTR Awardees Review Q & A

21. Indiana SBIR/STTR Services The Indiana SBIR/STTR Program aids Indiana Small Businesses in: Vetting project(s) for SBIR/STTR Team Formation Solicitation Research & Matching Registration Requirements Aid Meeting with Federal Program Managers and Technical Points of Contacts (TPOCs) Writing Assistance* Tech Transfer Other, various www.diabetesmine.com

22. IN SBIR/STTR Services - 2015 Per Year Events2015 Metrics # of Clients Served with Counseling112 # of Client Submissions47 # of Winning Clients9 Amount of funding clients accomplished$4.2M # of Outreach Events28 IN SBIR/STTR Program Communication (Newsletter)Prototype Agency-specific WebinarsMajor 3 Granting Agency Webinar Overviews

23. IN SBIR/STTR Services - 2016 Per Year Events2016 Target Metrcis # of Clients Served with Counseling124 # of Client Submissions52 # of Winning Clients13-14 Amount of funding clients accomplished$4.6M # of Outreach Events30 IN SBIR/STTR Program Communication (Newsletter) Full Publication in Q1; Monthly thereafter FAST Grant1 st for IN PTAC-OSBE IN SBIR/STTR Intern ProgramEstablished in Q2 SBIR Pre and Post Award Packets Available for Distribution Major 5 Granting Agencies Packets established by end of Q2; Remaining Agencies by Q4 Agency-specific Webinars Major 5 Granting Agency Webinar Overviews; Major 3 In-depth

24. SBIR/STTR Grants – What do they look like? We provide samples upon request* NIH – 6 Page Research Strategy NSF – 15 Page Project Description DOD - ~ 2- Page R&D Strategy Others – vary between these Structured for a Small Business (not only academics!) to be able to digest and respond to! “We are looking for great ideas, not great grantsmanship” – Dr. Prakash Balan, Director SBIR NSF Programs, SBIR/STTR Summit and Showcase, Austin, TX, 12.2.15

25. What does an SBIR/STTR SB or entrepreneur look like? Doesn’t have to have yet formed the company Company must be for profit, US owned and operated, and under 500 people Typically they are primarily a R&D organization both in what they do and their staff. Average firm size is 9. As they get larger (over 30) you see balance or product development and sales in addition to R&D Focus is on performing R&D – Not for purchasing equipment, commercializing a technology that has already been developed, or one that has very low risk and only needs capital

26. SBIR/STTR Winning Applications Usually are prepared for over 3 months in advance Usually are in contact with the agency Technical Point of Contact (TPOC – DOD), Project Director (PD)/Manager (PM), etc. Have a formidable team – domain expertise, business expertise, program management Have vision and understand commercial applications These are not academic grants for basic R&D – they are grants to stimulate innovation and the economy – they expect and want the small business to be successful

27. What makes a Great SBIR/STTR Proposal? Evaluation Criteria addresses How well proposal addresses topic area Skills of PI and Team Potential to Commercialize Strong proposal hits all of these, provides clear details on how/why the approach address the Agencies need; Skills of the team; and describes how the firm will move the technology through the Phase’s and commercialize the technology in the way that Agency wants them to Understanding needs of the Agency and showing this Use SBIR.Gov and local IN PTAC and other resources to help you

28. What about IP? Small Business Concern Retains It Government can use at cost – pays no royalties to use Important for some agencies that you have IP protection – patent, provisional or utility patent

29. 29 Case Studies – Just Scratching The Surface Emanating from upstate NY, founded by two undergraduate students at Rensselaer Polytechnic Institute, came up with the idea to use mushrooms as the binding material for composite fabrication of biodegradable materials which in turn offer a promising solution to potentially eliminate petrol-based composites. They received some of their earliest funding via EPA and NSF SBIR Grants. IDA-STPI studied NSF's role in 3D Printing (along with leadership from NASA, DOD, etc...) shows that some of most crucial parts of the technology was financed via the SBIR/STTR program. Z-Corporation which emanated out of MIT labs and was recently acquired by 3D Systems, was one of the first 3D Printing companies to enter the market dating back to 1994 and receiving initial financing from NSF through various research financing opportunities including the SBIR/STTR program. FROM A COMPANY PERSPECTIVE

30. Session Overview Introduction Introduction to Federal SBIR/STTR Program Indiana SBIR/STTR Program Services Indiana Matching Funding for SBIR/STTR Awardees Review Q & A

31. Indiana Matching SBIR/STTR Funding OSBE PTAC partnership with the Indiana Economic Development Corporation (IEDC) and Elevate Ventures Indiana companies awarded Phase I SBIR/STTR funding can access matching awards up to an additional 50 cents for every federal dollar, up to $50,000 per award. More non-dilutive funding! Additional co-investment opportunities for select Phase II recipients and those moving to commercialization (Phase III) may also be available.

32. Review SBIR/STTR funding for SB Innovation is available Indiana offers SBIR/STTR application aid through PTAC SBIR/STTR Program Specialists Matching Funding ($50 K/award*) is available for Phase I awardees (*max of 3 matched awards/lifetime of company as of 2014 relaunch) www.smartgridcis.com

33. Review – Useful Links – How to Get Started! Open and Closed SBIR/STTR Topics: www.sbir.gov AND www.zyn.com Indiana SBIR/STTR Help: www.indianaptac.com/sbirsttr/ Indiana SBIR/STTR Phase I Matching Funding: http://www.elevateventures.com/programs/sbir-sttr-grants Indiana Database for University Research Expertise (INDURE) https://www.indure.org Purdue TAP http://tap.purdue.edu IP available for commercialization – search on Purdue and Crane! www.flintbox.com IP Challenges from Industry www.innocentive.com

34. Questions and Answers* www.masemp.com

35. Thank You for Attending! Dr. Lisa R. Sproul Hoverman Indiana PTAC, a part of OSBE lhoverman@osbe.in.gov

36. Upcoming IN SBIR/STTR Events see www.indianaptac.com Attend the SBIR Road Tour – August 19 in Indianapolis, IN!