1.
Robert-Allen Baker
Innovation Policy and Program Analyst
October 23 , 2014
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) are sister programs

2.
 From 15 USC 638 (e)(10) – the SBIR/STTR statute
◦ the term "commercialization" means--
(A) the process of developing products, processes,
technologies, or services; and
(B) the production and delivery (whether by the originating
party or by others) of products, processes, technologies, or
services for sale to or use by the Federal Government or
commercial markets
 Federal Agency commercialization metrics:
◦ Transition results in sale or license of a technology product or
process
◦ Commercialization revenues exceed SBIR/STTR investment
◦ Technology product or process advances mission of the Agency to
benefit society

3.
Inventor
Customer

4.
Discovery
Phase I Phase II Phase III
Proof-of
Concept
SBIR
Product
Design
Product
Development
Manufacturing/
Delivery
Idea Pre-seed
Funding
Seed
Funding
Expansion/Mezzanine
Operating Cap.
Friends and Family
Angels
Venture Funds
Start-up
Funding
Seed Funds
Founder
Institutional Equity
Loans / Bonds
Angel Groups

5.
Angels Provide ~90% of Outside Equity for Startups
Angel Investors (2014)
• $24.8 billion
• 70, 730 deals
• 23,460 seed (2012)
• 22,129 early stage
• 21,441 expansion
• > 268,000 individuals
Venture Capital (2014)
• $20.7 billion
• 2,099 deals
• 280 seed (2012)
• 1,647 early stage
• 1,796 later/expansion
• 522 active firms
Sources: Center for Venture Research/ UNH; NVCA 2013 Yearbook; PwC MoneyTree

6.
$1.50
$1.00
$0.50
$0.00
$980K
2010 2011 2012
Median Round Size Mean Round Size
6
*Angel rounds include angels & angel groups only
$900K
$990K
$500K
$625K $600K
$M

7.
 Congressional passion for small business innovation dates to the
passage of an SBIR statute in 1983, followed by STTR in 1992.
 SBIR/STTR reauthorization in 2011 focused on the importance of
commercializing technology, delivering innovation to customers.
 At ~$2.3B, SBIR/STTR is the largest Federal program available to
help small business inventors negotiate the innovation ecosystem
-- >145,000 awards since 1985, averaging 10 patents/day.
 For innovation investors, SBIR/STTR ris non-diluted funding used
to reduce risk, accelerate technology, and preserve your IP rights.
 The Fall National SBIR/STTR Conference in Austin on Nov. 11 -13
is the entry way into SBIR/STTR for entrepreneurs.

8.
 PHASE I
 Feasibility Study
 ~$150K six-month award (SBIR)
 ~$150K up to 12-months (STTR)
• PHASE II
 Full research to prototype
 $1M+ via two-year award
• PHASE III - Goal of Program
 Commercialization stage
 Funded with non-SBIR/STTR $
 Can be funded by the Agency or
Private Sector or both
8

9.
9

10.
NASA Phase II supplements:

11.
12
% of Phase I
Awardees
35%
30%
25%
20%
15%
10%
5%
0%
2009 2010 2011 2012
First time DOE
winners
First-time DOE
applicants

12.
 Free, continuous support by skilled entrepreneurial support
providers accompanies most SBIR/STTR awards:
◦ Phase I assistance
 Commercialization readiness assessment
 Focused assistance with development of Phase II commercialization plans
◦ Phase II assistance
 Flexible offerings to meet a variety of commercialization needs in DoD
Agencies and Civilian Agencies alike
 Market research on customers
 Investor introductions
 Company-selected commercialization assistance vendor
◦ Reauthorization permits companies to select their own vendors to
provide $5K/year commercialization assistance in Phases I and II.
◦ Company must include this vendor as a subcontractor or consultant in
their Phase I or II application

13.
What requirements does a RIF project satisfy?
 Satisfy an operational or national security need:
◦ Accelerate or enhance military capability
◦ In support of major defense acquisition program
 Reduce:
◦ Technical risk
◦ Cost: Development, acquisition, sustainment, or lifecycle
 Completed within 24 months of award
 Cost is not more than $3 million
Selection Preference to Small Business Proposals

14.
 As an inventor, your priority must be to identify customers for a
technology adapted by you to meet their needs and requirements.
 As an SBIR/STTR awardee, your priorities must be to:
◦ … help fulfill the mission of your funding Agency.
◦ … leverage non-SBIR/STTR resources to mature your technology and
productize it for potential customers you’ve identified.
 As a small business principal, your priority must be to fairly
appraise your strengths and weaknesses, and build a team that
allows you to aggressively market your invention.
 And yes, we ARE here to help ……

15.
 The “SBIR Gateway” at www.zyn.com provides direct links to
every Federal Agency SBIR/STTR program, other
commercialization resources, and SBIR/STTR news.
 http://www.youtube.com/user/NSFInnovationIIP offers useful
webinars such as How to Successfully Apply to the NSF
SBIR/STTR Program.
 http://www.navysbir.com/how2videos.htm offers “SBIR
University” tutorials on numerous subjects for beginners and
experienced entrepreneurs alike – including summaries of all
Federal Agency SBIR and STTR programs.
 http://www.sbtc.org is a policy portal on commercialization
issues, offering illuminating white papers and other
documents.

16.
Questions?