1. Using Crane's inventions to start a business SBIR/STTR Funding Fundamentals Accessing America’s Seed Funds in Indiana Lisa R. Sproul Hoverman, PhD State of IN SBIR/STTR Program Director

2. Session Overview Introduction & America’s Seed Funds
State of IN Support for SBIR/STTR
Indiana SBIR/STTR Program Services
Indiana Matching Funding for SBIR/STTR Awardees
Review
Q & A

3. Introduction – Who we Are
Indiana Procurement Technical Assistance Center (PTAC) - part of Indiana Economic Development Corporation (IEDC) administers support for Federal SBIR/STTR Program in IN
PTAC 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

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

6. Introduction- Terminology
SBIR/STTR grants are usually for STEEAM Small Businesses (SB)
STEEAM stands for Science, Technology, Engineering, Education, Agriculture, and Mathematics – perfect for supporting inventions from Crane
FY stands for Fiscal Year
PI stands for Principal Investigator
R/R&D stands for Research/Research & Development

7. Introduction to SBIR/STTR
$2.8B+ in non-dilutive funding/year
Exclusively set aside for SBs
Administered by SBA
Encourages domestic SBs to engage in high-risk R/R&D with strong commercialization potential
Competitive awards-based program
Enables SBs to explore technological potential
Provides incentive to profit from commercialization
Funding over 2 Phases, commercialization is Phase III
Funding success is about 25% for first time applicants!
Structured so SBs can respond themselves
You can write this grant!

8. Goal of the SBIR/STTR Program
Meet Federal R/R&D needs
Increase private-sector commercialization of innovations derived from Federal R/R&D funding – like those inventions from Crane
Stimulate technological innovation
Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged persons

9. History of SBIR/STTR Program
Created by Roland Tibbetts at the National Science Foundation and signed as a Federal program in 1982
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

10. The Current SBIR/STTR Programs
Qualcomm
Symantec
iRobot
Genzyme
Nimble Systems
NanoMech
Lift Labs
Adaptec
Trellis Growing Systems
PIttMoss
Techshot
Speak Modalities
The Current SBIR/STTR Programs
Small Business Innovation Research (SBIR)
Set-aside program for SB to engage in R&D – with potential for commercialization
3.2 % of Federal agencies Extramural R&D budgets greater than $100M per year (FY 2016 ~ $ Billion in summation of 11 participating agencies).
Small Business Technology Transfer (STTR)
Sister set-aside program to facilitate cooperative R&D between SB and U.S. research institutions – with potential for commercialization.
0.4% of the extramural research budget (>$250 million) for all agencies with a budget greater than $1B per year.

11. SBIR/STTR Differences
SBIR applicants must perform 67% of the work, and can only subcontract 33%. No partnering required for SBIR.
Principal Investigator/Project Lead must work at company >51% of time (most agencies).
Intellectual Property (IP) is with the SB only.
STTR differs from SBIR in several ways, including:
SB must partner with a research institution and award them 30% of the work.
The SB must perform at least 40% of the work; additional 30% can be further subcontracted.
PI/Project Lead can work at company part time (most agencies).
STTR requires the SB and its partnering institution to establish IP agreement detailing the allocation of intellectual property rights and rights to carry out follow-on research, development or commercialization activities.

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

13. The11 SBIR Funding Agencies
SBIR + STTR
SBIR 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) (NIH administers the SBIR/STTR Program for all of 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)

14. SBIR/STTR Agency Funding FY2016
~ $2.8 B in FY17
across all agencies
23 Sept 2015

15. SBIR/STTR Agency Budgets FY2016
Agencies with SBIR and STTR Programs
Budget
Department of Defense (DOD)
$1.070B
Department of Health and Human Services (HHS), including the National Institutes of Health (NIH)
$797.0M
Department of Energy (DOE), including Advanced Research Projects Agency – Energy (ARPA-E)
$206.1M
National Aeronautics and Space Administration (NASA)
$180.1M
National Science Foundation (NSF)
$176.0M
Agencies with SBIR Programs
Budget
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)
$7.9M
Department of Education (ED)
$7.5M
Environmental Protection Agency (EPA)
$4.2M
23 Sept 2015

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

17. Review of the Introduction
SBIR/STTR enables SBs in STEEAM to explore new technologies by providing the incentive of profit from commercialization in non-dilutive funding!
You can license (more on this upcoming!) inventions from federal funded R&D labs (federal labs, universities, other non-profit research institutions (i.e. Scripps))

18. Session Overview Introduction & America’s Seed Funds
State of IN Support for SBIR/STTR
Indiana SBIR/STTR Program Services
Indiana Matching Funding for SBIR/STTR Awardees
Review
Q & A

19. Session Overview Introduction & America’s Seed Funds
State of IN Support for SBIR/STTR
Indiana SBIR/STTR Program Services
Indiana Matching Funding for SBIR/STTR Awardees
Review
Q & A

20. Why State Support for SBIR/STTR?
We want our SBs Competing at the highest level and for federal funding!
Largest source of seed funding for STEEAM innovative start-ups in U.S
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! So Let’s Pursue it!
We want to be a good home for Crane and other federally funded institutions (IU, Notre Dame, Purdue, USI)

21. Ideal Source of Funding
Non-Dilutive vs.
Debt
Equity

22. Goals of the IN SBIR/STTR Program
Increase # of SBIR/STTR Awards to IN SBs
Bring more federal money into IN
Help IN SBs find, pursue, and win SBIR/STTRs
Enable IN SBs to startup without giving up equity
Stimulate technological innovation in IN private sector
Strengthen the role of Hoosier SB in meeting the national R&D needs
Increase commercial application of Indiana Federally-supported research

23. Ideal Source of Funding
Non-Dilutive vs.
Debt
Equity

24. Session Overview Introduction & America’s Seed Funds
Goal of the Indiana SBIR/STTR Program
Indiana SBIR/STTR Program Services
Indiana Matching Funding for SBIR/STTR Awardees
Review
Q & A

25. Indiana SBIR/STTR Services
The IN SBIR/STTR Program aids IN SBs* for FREE** 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
Post Award Support
Other, Various
* Must be based in IN, or have 50% of assets here
**We are a Tax-Payer funded resource

26. SBIR/STTR Grants – The Look
We provide samples upon request*
Some Typical Phase I Grants:
DOD - 20 Page R&D Strategy
NIH – 6 Page Research Strategy
NSF – 15 Page Project & Commercialization Description
Others – vary between these
Structured for a SB to be able to 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,

27. The Look of an SBIR/STTR SB
A formed company*
For profit, US owned and operated, and under 500 people (51% or more US citizen or Legal Resident Alien owned)
Average firm size is 9
Focus is on performing highly innovative R&D
Funding not for purchasing equipment, commercializing technology previously developed, or one that is very low risk and only needs capital

28. SBIR/STTR Winning Applications
Prepared for 2-3 months in advance
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

29. A Great SBIR/STTR Proposal
Addresses the Evaluation Criteria
Clearly details how/why the approach address the Agency’s need
Skills of PI and Team
Appropriate for technology and commercialization path
Potential to Commercialize
Describes how the firm will move the technology through the Phases to commercialization of the technology
Shows understanding of the needs of the Agency
Uses SBIR.Gov, Agency offerings, SBIR Program, and other aids

30. Intellectual Property (IP)
Small Business Concern Retains IP
Important for some agencies that you have IP protection – patent, provisional or utility patent
NIH is increasingly concerned with this!

31. Case Studies – Here! Aerodyn Combustion Anderson Custom Electronics
Applied Logistics Services
Candent Technologies
Createability
Indiana Integrated Circuits
ITAMCO
Stimulus Engineering
Techshot
Victor Technologies
Wolf Technical Services
XADS (Xtreme Alternative Defense Systems)

32. Session Overview Introduction & America’s Seed Funds
Goal of the Indiana SBIR/STTR Program
Indiana SBIR/STTR Program Services
Indiana Matching Funding for SBIR/STTR Awardees
Review
Q & A

33. IN Matching SBIR/STTR Funding
More non-dilutive funding
Indiana Economic Development Corporation (IEDC) - Elevate Ventures administer
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 from 21st Century Fund
No strings attached, must use on project
Additional co-investment opportunities for select Phase II recipients and those moving to commercialization (Phase III) may also be available.

34. Review SBIR/STTR funding for SB innovation is available
Non-dilutive!
IN offers SBIR/STTR Free Aid
Matching Funding ($50 K/award*) is available for Phase I awardees
MORE Non-dilutive Funding!
*max of 3 matched awards/lifetime of company

35. Useful Links – How to Get Started!
Open and Closed SBIR/STTR Topics:
Agency Websites – Google agency + SBIR (‘NIH SBIR’)
Indiana SBIR/STTR Help:
Patent Help
Indiana SBIR/STTR Phase I Matching Funding:
click on ‘Entrepreneurs’>’Investment/Funding’ and click ‘Apply’ under SBIR/STTR in the ‘Ideation Section.’
Find an Expert:
Indiana Database for University Research Expertise (INDURE) -
Purdue TAP -
Find a Mentor:
Find IP Available for Commercialization:
(can search on Purdue and Crane as examples)

36. Homework; Next Steps I will get back to you within a week with matches
See if there is a grant for you!
me at
Introduce yourself and technology in the
Attach an Executive Summary that covers:
An overview of your company and the chosen team
The technology/innovation you can provide/develop
The market opportunity (ies), value proposition, and customers;
The competition; 
What you would accomplish in 6 months to 1 year, given $ K of funding from DoD, NIH, NSF, etc.
I will get back to you within a week with matches

37. Questions and Answers*

38. Thank You for Attending!
Lisa R. Sproul Hoverman, PhD me with your company overview for a matched grant!