SBIR & STTR Grants Non-dilutive Funding of Research for Small Businesses June 25, 2014 @UC Irvine School of Medicine (Orange) Molly B. Schmid, Ph.D. Senior Counselor, TriTech SBDC 2013 MB 2013 Schmid MB Schmid 1
Presentation Outline Characteristics of SBIR/STTR grants Preparing to apply for an SBIR/STTR grant Do you qualify for SBIR/STTR Award? Preparing the SBIR/STTR Proposal Who is the Principal Investigator How likely is it that you will receive an SBIR award if you submit a proposal? TriTech SBIR Counseling services How TriTech can help Ideas for being an academic and starting a company 2
Why Academics Should Care about SBIR/STTR Grants If you are interested in starting a company or have an existing company If your students are interested in starting a company around your research interests Many similarities in grantsmanship between SBIR/STTR proposals and other types of proposals to support research NON-dilutive funding (you retain equity) Typically no matching fund requirement for Phase I, II grants 3
CHARACTERISTICS OF SBIR/STTR GRANTS 4/10/2013 4
Characteristics of SBIR/STTR grants 12 federal agencies administer SBIR/STTR programs Only US-based small business are eligible SBIR solicitations require description of commercial applications Government can be customer (e.g., military, biodefense) Small businesses eligible for MANY other federal grants SBIR/STTR funds reserved for small businesses 5
Characteristics of SBIR/STTR grants SBIR Small Business Innovative Research STTR Small-business Technology Transfer Collaboration required between university & small business PI can be university researcher Grants in phases Phase I typically technical proof of principal/concept Amounts vary, 6-12 mo s, $75-150K common Phase II complete research, development Amounts vary, 24 mo s, $750K- 1.5MM common Phase III commercialization Typically unfunded, though there may be non-cash, in-kind aid to commercialization activities Small businesses eligible for MANY other federal grants, but SBIR/STTR reserved for only small businesses 6
Federal Agencies with SBIR Programs In 2012, the following federal agencies had SBIR programs: Department of Agriculture Department of Commerce - National Institute of Standards and Technology Department of Commerce - National Oceanic and Atmospheric Administration Department of Defense Department of Education Department of Energy Department of Health and Human Services Department of Homeland Security Department of Transportation Environmental Protection Agency National Aeronautics and Space Administration National Science Foundation Each agency manages its SBIR/STTR programs 7
PREPARING TO APPLY FOR AN SBIR/STTR GRANT 4/10/2013 8
Do You Qualify for SBIR/STTR Award? Company structure, ownership Organized, For- profit, U.S.-based business Ownership changing requirements Past: At least 51% U.S.- owned by individuals (this precluded companies majority owned by venture funds) To come soon: Agency-by-agency implementation allowing some companies with majority fund ownership. Check specifics of funding opportunity 500 employees or fewer including affiliates PI s primary employment with the small business At the time of award and for the duration of the project period STTR can have academic PI (but there must be 51% employee of business) Proposed work must occur in US Exceptionally difficult/impossible to overcome this 4/10/2013 9
Preparing the SBIR/STTR Proposal - cont d - Identify SBIR/STTR funding opportunities www.sbir.gov Aggregates all agencies Non-SBIR/STTR funding opportunities http://www.grants.gov/applicants/find_grant_opportunit ies.jsp Identify specific solicitation(s) Deadlines for Letter of Intent, Pre-application if required All details needed to prepare proposals are provided in specific solicitations Often 50-100 pgs, sometimes 2 or more separate documents Register on electronic submission systems This may take 6-8 weeks! 10
This is an overview - Always check the specific agency solicitation! Characteristics of SBIR/STTR Awards Agency > DoD NASA DoT EPA DoE DHS DoC- NOAA DoC- NIST NSF USDA DoED NIH Award Type (Contract, Grant) C C C C G C C C G G G/C G/C Max. Award Amount Phase I 150K a 125K SBIR/ 100K STTR 150K 80K 150K 100K 95K 90K 150K 70-100K 100K 150K b 6 mo/ (12 mo STTR) 8 mo 6 mo 6 mo Time of Phase I 6 mo 6 mo/ (12 mo STTR) 6 mo 6 mo 9 mo 6 Mo 6 mo 6 mo Award Amount Phase 300- II 1MM 750K 1MM 300K 1MM 750K 400K 300K 500K 450K 500K 1MM Time of Phase II 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo Review Process I I I I E I I I E E I E Research Topics S S S S S S S S B B S B Gap Funding Y N N N Y N N N Y Y N Y Communication R R R R R R R R O O O O Recent Success rates (Ph I, 2010) 16% 22% 9% 7% 14% 17% 8% 18% 17% 14% 20% Recent Success rates (Ph II, 2010) 73% 50% 70% 61% 33% 67% 41% 29% 62% 23% 41% Avg mo's - Phase I proposal deadline and start of award 5.8 4.9 4.2 9 7.1 4 6.3 6.1 6.5 9.5 7.6 9.9 a
This is an overview - Always check the specific agency solicitation! Characteristics of SBIR/STTR Awards Agency > DoD NASA DoT EPA DoE DHS DoC- NOAA DoC- NIST NSF USDA DoED NIH Award Type (Contract, Grant) C C C C G C C C G G G/C G/C Max. Award Amount Phase I 125K SBIR/ 100K STTR 150K 80K 150K 100K 95K 90K 150K 70-100K 100K 150K b 150K a 6 mo/ SOME AGENCIES - CONTRACTS 6 mo/ (12 (12 mo Time of Phase I 6 mo mo STTR) 6 mo 6 mo 9 mo 6 Mo 6 mo 6 mo STTR) 8 mo 6 mo 6 mo Award Amount Phase OTHER AGENCIES - 300- GRANTS II 1MM 750K 1MM 300K 1MM 750K 400K 300K 500K 450K 500K 1MM Time of Phase II 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo Review Process I I I I E I I I E E I E Research Topics S S S S S S S S B B S B Gap Funding Y N N N Y N N N Y Y N Y Communication R R R R R R R R O O O O Recent Success rates (Ph I, 2010) 16% 22% 9% 7% 14% 17% 8% 18% 17% 14% 20% Recent Success rates (Ph II, 2010) 73% 50% 70% 61% 33% 67% 41% 29% 62% 23% 41% Avg mo's - Phase I proposal deadline and start of award 5.8 4.9 4.2 9 7.1 4 6.3 6.1 6.5 9.5 7.6 9.9 a
This is an overview - Always check the specific agency solicitation! Characteristics of SBIR/STTR Awards Agency > DoD NASA DoT EPA DoE DHS DoC- NOAA DoC- NIST NSF USDA DoED NIH Award Type (Contract, Grant) C C C C G C C C G G G/C G/C Max. Award Amount Phase I 150K a 125K SBIR/ 100K STTR 150K 80K 150K 100K 95K 90K 150K 70-100K 100K 150K b 6 mo/ Time of Phase I 6 mo 6 mo/ (12 mo STTR) 6 mo 6 mo 9 mo 6 Mo 6 mo 6 mo (12 mo STTR) 8 mo 6 mo 6 mo Award Amount Phase 300- II 1MM 750K 1MM 300K 1MM 750K 400K 300K 500K 450K 500K 1MM Time of Phase II 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo Review Process I I I I E I I I E E I E PHASED STRUCTURE Research Topics S S S S S S S S B B S B Gap Funding Y N N N Y N N N Y Y N Y Communication PHASE R I R 6-9 MONTHS, R R R $100-150K R R R proof O of O O O Recent Success rates concept (Ph I, 2010) 16% 22% 9% 7% 14% 17% 8% 18% 17% 14% 20% Recent Success rates (Ph II, 2010) 73% 50% 70% 61% 33% 67% 41% 29% 62% 23% 41% PHASE II 2 YRS, $750K - $1.5mm Avg mo's - Phase I proposal deadline and start of award 5.8 4.9 4.2 9 7.1 4 6.3 6.1 6.5 9.5 7.6 9.9 a
This is an overview - Always check the specific agency solicitation! Characteristics of SBIR/STTR Awards Agency > DoD NASA DoT EPA DoE DHS DoC- NOAA DoC- NIST NSF USDA DoED NIH Award Type (Contract, Grant) C C C C G C C C G G G/C G/C Max. Award Amount Phase I 125K SBIR/ 100K STTR 150K 80K 150K 100K 95K 90K 150K 70-100K 100K 150K b 150K a 6 mo/ SOME AGENCIES SPECIFIC TOPICS (DOD) 6 mo/ (12 (12 mo Time of Phase I 6 mo mo STTR) 6 mo 6 mo 9 mo 6 Mo 6 mo 6 mo STTR) 8 mo 6 mo 6 mo Award Amount Phase OTHER AGENCIES BROAD 300-TOPICS (NIH) II 1MM 750K 1MM 300K 1MM 750K 400K 300K 500K 450K 500K 1MM Time of Phase II 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo Review Process I I I I E I I I E E I E Research Topics S S S S S S S S B B S B Gap Funding Y N N N Y N N N Y Y N Y Communication R R R R R R R R O O O O Recent Success rates (Ph I, 2010) 16% 22% 9% 7% 14% 17% 8% 18% 17% 14% 20% Recent Success rates (Ph II, 2010) 73% 50% 70% 61% 33% 67% 41% 29% 62% 23% 41% Avg mo's - Phase I proposal deadline and start of award 5.8 4.9 4.2 9 7.1 4 6.3 6.1 6.5 9.5 7.6 9.9 a
Preparing the SBIR/STTR Proposal Identify proposal PI SBIR must be employed 51% by small business Proposal is technical Reviewers need evidence that PI will be good project leader for proposed activities Who will guide technical activities, decisions, manage technical staff? In my experience (NIH) Over-extended CEO sometimes receives criticism MBA-CEO without technical credentials often receives criticism Strong proposal will overcome this Consider STTR mechanism, where academic can be co-pi Intent to be with company throughout grant period Who will write proposal? Technical document 6-25pg research plan Budget Company must submit the proposal (not the university) Company must register in electronic submission systems 15
Check the Details - NIH SBIR and STTR Omnibus Solicitations Defines scope (broad), institutes (all), eligibility, deadlines (standard deadlines: Apr 5, Aug 5, Dec 5; <AIDS different>) Not all NIH Institutes will fund clinical trials through SBIR or STTR Omnibus Solicitations NO: NIAID, NINDS YES: NIMH, NCCAM Special FOA s for SBIR-funded Exploratory Clinical Trials http://grants.nih.gov/grants/funding/sbirsttr1/2014-2_sbir-sttr-topics.pdf http://grants.nih.gov/grants/guide/pa-files/pa-14-071.html http://grants.nih.gov/grants/guide/pa-files/pa-14-072.html 4/10/2013 16
How likely is it that you will receive an SBIR award if they submit a proposal? DoC- NOAA DoC- NIST NSF USDA DoED NIH Agency > DoD NASA DoT EPA DoE DHS Recent Success rates (Ph I, 2010) 16% 22% 9% 7% 14% 17% 8% 18% 17% 14% 20% Recent Success rates (Ph II, 2010) 73% 50% 70% 61% 33% 67% 41% 29% 62% 23% 41% Research Topics S S S S S S S S B B S B Resubmissions often allowed, and often higher % success than average Talking with agency personnel often helps understand competitiveness, especially with agencies that solicit Specific (rather than Broad) Research topics 17
Activities to Help Your Success Take advantage (or make) opportunities to talk with people in the relevant federal agency(s) Especially important for agencies that solicit applications for specific research topics Take advantage of opportunities to attend SBIR/STTR workshops Frequent reference to SOLICITATION when writing Format, etc MUST be correct Criteria for evaluation make information easy for reviewer to find, understand Plan ahead! First-time grant writers should start at least 1 month in advance, set aside sufficient time (100h) 18
TRITECH, OCTANE, CONNECT ORGANIZATIONS THAT CAN HELP! 4/10/2013 19
TriTech SBDC TriTech Small Business Development Center Orange County, Inland Empire geographic area Serving high potential early-stage companies Counselors to help small companies grow Experienced C-level business people Wide range of technical expertise Services designed to help early-stage companies Identify funding sources Identify professional service providers that are entrepreneurfriendly (lawyers, accountants, etc) Identify All free of charge to the entrepreneur! 20
TriTech SBIR/STTR Counseling Services What we can do Strategize how to break down projects into Phase I, II Inform on administrative issues Edit, feedback, counsel on the written proposal What we can t do Write the proposal PI is responsible for the work Technical nature of proposal requires knowledgeable PI to write the scientific background, workplan, commercialization, budget Options exist for outside grant writers (costs will vary, $5-10 + K)» Why do you want this option? ( Intimidated good answer; Too busy less good answer) Perform the administrative tasks 21
Advice from Awardees* Don t judge an agency s interests by its name Understand agency s mission & needs Get to know your agency Program Manager Read solicitation and follow instructions Don t depend solely on SBIR funding Don t go it alone - use support systems Have an outcome Win or lose - get and review evaluations Be PERSISTENT 1/23/2013 22 *From 2013 MB SBIR_STTR Schmid Overview ppt, Goodnight/Eiden NIH 1995-2000
For Information & Advice Online www.sbir.gov NIH and other agency websites Information about application & review processes Guides to better grant writing In person TriTech www.tritechsbdc.org OCTANe www.octaneoc.org CONNECT www.connect.org There is no reason to do it alone! 4/10/2013 23
CONTACT INFO TriTech Consulting: www.tritechsbdc.org mbschmid@verizon.net MOLLY B. SCHMID, PH.D. 4/10/2013 24
This is an overview - Always check the specific agency solicitation! Characteristics of SBIR/STTR Awards Agency > DoD NASA DoT EPA DoE DHS DoC- NOAA DoC- NIST NSF USDA DoED NIH Award Type (Contract, Grant) C C C C G C C C G G G/C G/C Max. Award Amount Phase I 150K a 125K SBIR/ 100K STTR 150K 80K 150K 100K 95K 90K 150K 70-100K 100K 150K b 6 mo/ (12 mo STTR) 8 mo 6 mo 6 mo Time of Phase I 6 mo 6 mo/ (12 mo STTR) 6 mo 6 mo 9 mo 6 Mo 6 mo 6 mo Award Amount Phase 300- II 1MM 750K 1MM 300K 1MM 750K 400K 300K 500K 450K 500K 1MM Time of Phase II 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo 24 mo Review Process I I I I E I I I E E I E Research Topics S S S S S S S S B B S B Gap Funding Y N N N Y N N N Y Y N Y Communication R R R R R R R R O O O O Recent Success rates (Ph I, 2010) 16% 22% 9% 7% 14% 17% 8% 18% 17% 14% 20% Recent Success rates (Ph II, 2010) 73% 50% 70% 61% 33% 67% 41% 29% 62% 23% 41% Avg mo's - Phase I proposal deadline and start of award 5.8 4.9 4.2 9 7.1 4 6.3 6.1 6.5 9.5 7.6 9.9 a