1. Small Business Innovation Research & Small Business Technology Transfer
Henry Ahn
SBIR/STTR Program Director
The National Science Foundation

2. NSF SBIR/STTR Program Specifics
Agenda
SBIR/STTR Overview
NSF SBIR Stats
NSF SBIR/STTR Program Specifics
Unique Features of NSF SBIR
What We Fund/Do Not Fund
Review Process
Tips on Strengthening Proposal

3. WHAT IS THE NSF SBIR/STTR PROGRAM?
Photo Credit: Graphene Frontiers, LLC

4. The SBIR/STTR Program Congressionally mandated program
Overarching aim is to help build a strong national economy
Goals include:
stimulating technological innovation in the private sector
increasing the commercial application of federally supported research results
SBIR began at NSF in the 1970’s
STTR added in 1992
Currently 11 federal agencies participate

5. SBIR/STTR at NSF The NSF: NSF SBIR/STTR:
A federal agency that supports fundamental research and education across all fields of science and engineering, currently with a $7.5 billion budget
NSF SBIR/STTR:
An approximately $190 million program that aims to catalyze the commercialization of high-risk technological innovations
Funds roughly 400 companies each year

6. SBIR De-risks Later Investments
Academia
Industry
“Valley of Death”
--Phase I--
----Supplements-----
-----Phase II------
Resources Available ($)
Discovery
Development
Commercialization
Investors

8. SBIR v. STTR Special STTR Requirements SBIR
Cooperative research agreement between small business and university/non-profit research institution in place to protect intellectual property
A minimum of 40% of budget allocated to the small business; a minimum of 30% of the budget goes to the university/non-profit research institution; the remaining 30% can be distributed as appropriate for the project
SBIR
2/3 of budget allocated to the small business

9. Program Stats NSF SBIR/STTR Phase I Grantees
Company Size: ~ 92% of awardees have 10 or fewer employees
History: ~ 87% of awardees had never had a prior SBIR/STTR Phase II award from any agency
Company Age: ~ 78% of awardee companies were incorporated within the past 5 years
Start-up Creation: Many Phase I awardees have just formed their business based on the availability of SBIR funding
Based on 3-year average

10. Program Stats – Past 3 Years
Phase I: Average of 338 awards from 2,112 proposals received per year (16% funding rate)
Phase II: Average of 118 Phase II awards from 303 proposals received per year (39% funding rate)
About Phase II companies are acquired each year
About half of all Phase II grantees raise significant third-party funding during the Phase II award as a direct result of their NSF research (~ $60 million cumulative per year)

11. Grants That Go Beyond Funding
Recipients receive training and mentorship in key business areas
Connection to other small companies performing innovative R&D
Winning an SBIR/STTR award signals success to investors, partners and customers

12. PROGRAM SPECIFICS
Photo credit: DeviceFarm

13. Qualifications: Must be a Small Business
Set up as a for-profit organization
Has 500 or fewer employees (including affiliates)
Located in the US
>51% owned and controlled by US individuals (citizen or legal resident)

14. What’s Different about NSF SBIR
NSF won’t buy anything from you
We don’t identify the application or technology space
You identify the market need and propose a tech-based solution
Broad program topics cover almost every area of technology:
Educational Technologies & Applications
Information Technologies
Semiconductors and Photonic Devices & Materials
Internet of Things
Electronic Hardware, Robotics & Wireless Technologies
Advanced Manufacturing & Nanotechnology
Advanced Materials & Instrumentation
Chemical & Environmental Technologies
Biological Technologies
Smart Health and Biomedical Technologies
Topic fit is much less important than meeting the technical and commercial requirements of the solicitation

15. What We Fund R&D to overcome significant technical hurdles
Novel, proprietary
Prove feasibility/viability of a new product, process or service
High technical risk, early-stage development
A significant commercial opportunity
Game-changing technology in the chosen market/application space
Product-market fit validated by customers/partners

16. What We Don’t Fund
Basic research (i.e., research with the primary goal of knowledge creation)
Incremental (evolutionary) improvement to an existing product or service
Projects where:
There is no strong chance of commercial success
NSF funding can’t make a big impact on the company’s prospects
Analytical or “market” studies of existing technologies or products/services

17. LOGISTICAL INFORMATION
Photo Credit: National Institute of Allergy and Infectious Diseases, NIH

18. Basic Application Information
Applications require written proposals responding to a solicitation (solicitations released 90 days before the submission deadline)
Deadlines in June and December
Upcoming Deadline: June 14, 2017
Submitting a proposal to NSF does not constitute a public disclosure. All information is treated as confidential, and proprietary details may be marked.
Proposals are reviewed by technical and commercial experts; process may last 4-5 months
Awards begin about 6 months from submission

19. NSF SBIR Application Tips
Innovative product with significant societal impact
Strong evidence that the technology works as intended
Understanding of the market potential, customers and commercialization strategy
Support letters from potential partners, customers or investors
Strong management team/advisory board
Communication with PD’s strongly encouraged

20. Key Takeaways
Seed funding for high technical risk, high return innovations
Focus is on commercialization – important even at Phase I
NSF is not a customer – you identify the market need
Funding is only for R&D – you will need money beyond NSF funding
Pivots are OK, but must be evidence-based
Don’t stress over submission topic or sub-topic
Communicate with the Program Director
Start early!
Based on 3-year average

21. THANK YOU
Contact Us: @NSFSBIR Henry Ahn