1. Financing Your Startup in the Information Security Space Through Government Funds Errol Arkilic The National Science Foundation Division of Industrial Innovation & Partnerships Division of Industrial Innovation & Partnerships

2. Division of Industrial Innovation and Partnerships  Five Programs:  Partnerships for Innovation (PFI)  Industry/University Collaborative Research Centers (I/UCRC)  Grant Opportunities for Academic Liaison with Industry (GOALI)  Small Business Innovation Research (SBIR)  Small Business Technology Transfer (STTR)

3. The NSF Mission  To promote the progress of science; to advance the national health, prosperity, and welfare; and to secure the national defense

4. Financing your Startup: Big Themes “Research is turning money into knowledge. Innovation is turning knowledge into money” - Geoff Nicholson VP 3M retired Common misunderstanding between finance community and lead entrepreneurs: Perspective on Risk

5. Technology Risk Market Risk People Risk Finance Risk Enterprise risk signature Angel Capital Threshold NSF SBIR/STTR Threshold Friends And Family Threshold Strategic Partners Threshold Venture Capital Threshold

6. Take Away  There is Rationale behind the positions of the different types of resources available!  Know your potential funding partner  Stated needs  Real needs  Culture  Debt, Equity, Contract, Grants  Technology Risk: A finer cut

7. What is your technology stage Innovation/ Translational Research Productization Market Penetration Growth Public Sector Private Sector ? Academic Research Basic Research Initial Commercialization Mature Resources Available Technology Maturity Level

8. Private effort to move out of “the gap”

9. SBIR and BAA programs  SBIR/STTR  Set aside  Department/Agency Culture  Customer/Investor  Grant/Contract  Justifies single-source contracts (post SBIR)  BAA  Contract R&D  More Resources… but

10.  DODDefense  HHSHealth  NASASpace  DOEEnergy  NSF~$100 Million  DHSHomeLand Security  USDAAgriculture  DOCCommerce  EPAEnvironment  DOTTransportation  DoEDEducation SBIR Participating Agencies TOTAL ~ $2.3B Est. FY 2006

11. Take Aways  Programs with the same name are different!  Contact the program prior to submission

12. Financing Your Startup  First, Second and Third Question: Do you having something to justify “starting up”  Fourth Question: What is your “Risk Signature”?  Corollary:Where are you in the development cycle?  Fifth Question: Where are you geographically?

13. Thank You For more information Contact: Errol Arkilic earkilic@nsf.gov

14. Useful Links: http://www.zyn.com/sbir/ http://www.sbirworld.comhttp://www.nsf.gov/div/index.jsp?org=IIP