Leveraging Americas Seed Fund Office of Investment Innovation

Leveraging America’s Seed Fund Office of Investment & Innovation

Goals → Meet federal research and development needs → Increase private-sector commercialization of innovation derived from federal research and development funding → Stimulate technological innovation → Foster and encourage participation in innovation and entrepreneurship by women and socially/economically disadvantaged individuals → Foster technology transfer through cooperative R&D between small businesses and research institutions (STTR)

Small Business Innovation Research (SBIR) → ~$2. 5 billion set-aside each year → 3. 2% of the extramural research budget for agencies with a budget greater than $100 million per year → ~5, 000 new awards each year

Small Business Technology Transfer (STTR) → ~$350 million set-aside each year → 0. 45% of the extramural research budget for agencies with a budget greater than $1 billion per year → Parallel program which requires small businesses to subcontract with a U. S. research institution

Best Things about SBIR/STTR → Non-Diluted Capital – The funding agency cannot take an equity position or ownership of your firm → IP/Data Rights protection – Government can’t share your reports or data with anyone outside of the federal government for 5 years (Do. D) or 4 years (other agencies) → Direct follow on Phase III awards – No need for further competition, which benefits both the government and small businesses

Agencies that Participate in SBIR & STTR Department of Agriculture (USDA) Department of Energy (DOE) Department of Commerce (Do. C) NIST, NOAA Department of Health and Human Services (HHS) Environmental Protection Agency (EPA) Department of Defense (Do. D) Department of Education (ED) Department of Homeland Security (DHS) Department of Transportation (DOT) National Aeronautics and Space Administration (NASA) National Science Foundation (NSF)

SBIR/STTR Budget by Agency: FY 2016 Agencies Department of Defense (Do. D)* Budget $1. 28 B Department of Health and Human Services (HHS)**, including the National Institutes of Health (NIH) $891. 0 M Department of Energy (DOE), including Advanced Research Projects Agency – Energy (ARPA-E) $228. 6 M National Science Foundation (NSF) $187. 7 M National Aeronautics and Space Administration (NASA) $183. 4 M U. S. Department of Agriculture (USDA) $28. 8 M Department of Homeland Security (DHS) $17. 0 M Department of Transportation (DOT) $11. 6 M Department of Commerce: National Oceanic and Atmospheric Administration (NOAA) $9. 2 M Department of Education (ED) $7. 5 M Environmental Protection Agency (EPA) $4. 9 M Department of Commerce: * Budgeted amount; other Agencies Obligated Amount National Institute of ** Provides grants and. Standards contracts and Technology (NIST) $3. 3 M NASA NSF DOE $188 M $183 M $229 M $891 M HHS $1. 288 B Do. D Grants Contracts SBIR: $2. 50 Billion STTR: $361 Million

Three Phase Process Phase III Concept Development 6 months – 1 year ~ $150, 000 Prototype Development 24 months ~ $1, 000 Commercialization No SBIR funding Solicitation to Award Process Find Solicitation Proposal Submission Evaluation Award Phase I

What does an SBIR/STTR firm look like? • Company must be for profit, U. S. owned and operated, and under 500 people • Work must be done in the U. S. • Focus is on performing R&D – Not purchasing equipment, commercializing a technology that has already been developed, or one that has very low risk and only needs capital

Principal Investigator (PI) → Must be employed by the small business (or partnering research institution for STTR) at time of award (check solicitation) → Should have appropriate expertise to oversee project scientifically and technically → Expertise of the PI and team are one of the three evaluation factors

Differences Between SBIR and STTR SBIR Partnering Permits partnering Requirement Principal Primary employment (>50%) Investigator must be with the small business May subcontract up to: Work 33% (Phase I) Requirement 50% (Phase II) Program 3. 2% (FY 16 - $2. 5 B) Size Majority VC Allowed by some agencies ownership 11 agencies Participating (extramural R&D budget > Agencies $100 M) STTR Requires a non-profit research institution partner PI may be employed by either the research institution partner or small business (check solicitation) Minimum: 40% Small Business 30% Research Institution Partner 0. 45% (FY 16 - $360 M) Not allowed 5 agencies (extramural R&D budget > $1 B) The small business is ALWAYS the applicant and awardee!

Contracting Agencies Granting Agencies § Agency establishes plans, protocols, requirements § Principal Investigator initiates approach § Highly focused topics § Less-specified topics § Procurement mechanism § Assistance mechanism § More fiscal requirements § More flexibility § Invoiced on progress § Allows upfront payment § Binding agreement between a § Funds support a public buyer and seller for purpose, best efforts in goods/services research Do. D, DHS, NASA, EPA, DOT, Do. ED NSF, Do. E, USDA, NIST

Required Registrations NASA HHS NSF DOE DOD DUNS x x x SAM. gov x x x Company Registry (SBIR. gov) x x x Grants. gov x e. RA Commons x Electronic Handbook (EHB) NSF Fast. Lane x x x Portfolio Analysis and Management System (PAMS) x fedconnect. net x Funding Accountability and Transparency Act Sub-award Reporting System x Do. D Submission Website x

Why We Work on America’s Seed Fund www. sbir. gov/news/success-stories

www. sbir. gov

Where to Begin? – Topic Searches → Keyword searches – Learn which agencies fund your technology area! www. sbir. gov/sbirsearch/topic/past

Where to Begin? – Award Searches → Identify successful firms → Identify agency investments in technology areas www. sbir. gov/sbirsearch/award/all

Online Tutorials → 55 Courses including: → Agency overviews → Program basics → Data rights → IP protection www. sbir. gov/tutori als

Connect to Your Network of Local Support → Federal and State Technology (FAST) partners → SBA District Offices → Small Business Development Centers (SBDCs) → Procurement Technical Assistance Centers (PTACs) → Women’s Business Centers www. sba. gov/tools/local-assistance

Stay In Touch Brittany. Sickler@sba. gov @SBIRgov #seedthefuture www. sbir. gov