The Texas State SBDC presented this Spectrum program at the Austin Chamber of Commerce on January 15, 2015. Heath Naquin, Executive Director of the NSF I-Corps Node and Lisa Kurek, Managing Partner at BBC Entrepreneurial Training & Consulting were the main speakers. Additional information about the Spectrum technology commercialization program at Texas State SBDC is available at www.AustinSmallBusinessAnswers.com

9. SW I-Corps Node
Heath Naquin
Executive Director

11. $7 Billion

12. “How can we increase the economic
impact of the research dollars
invested every year?”

14. NSF Created the Innovation Corps
(I-Corps™)
A set of activities and programs that
prepares scientists and engineers to
extend their focus beyond the
laboratory and broadens the impact
of select basic-research projects.

15. The primary goal of NSF I-Corps is to
foster entrepreneurship that will lead
to the commercialization of technology
that has been supported previously by
NSF-funded research.

16. Seven I-Corps Nodes
• 2014- UT, TAMU, Rice – Southwest
• 2014-USC, UCLA, Cal Tech – S. California
• Michigan – Midwest
• Georgia Tech – Southeast
• CUNY, NYU, Columbia – Northeast
• Maryland, GWU, Virginia Tech – D.C.
• Stanford, Berkley – Bay Area

17. SW I-Corps Regional Node

18. Key Objectives: SW Node
• Deliver national cohort training
• Integrate I-Corps programs and activities into
institutions across the state and region
• Build I-Corps Teams Applications Regionally
• Drive I-Corps methodologies into new areas such
as K-12 and community colleges
• Promote the I-Corps program nationally
• Feed the NSF Small Business Innovation Research
(SBIR) and Small Business Technology Transfer
(STTR) programs

19. Partner Institutions

20. 3 Distinct Components of I-Corps
• I-Corps Team Program
– Individual Team grant awards
• I-Corps Sites Program
– academic institutions that catalyze the engagement of
multiple, local teams in technology transition and
strengthen local innovation.
• I-Corps Node Program
– hubs for education, infrastructure and research that
engage academic scientists and engineers in
innovation; they also deliver the I-Corps Curriculum to
I-Corps Teams.

21. I-Corps Teams
• 6-month grant program
• $50,000 to develop Go/No Go
• 6-week intensive, hands-on effort
• Focus:
– Customer Discovery
– Testing product market fit for innovations
– Providing Structured Education on Evidence-based
Entrepreneurship
– Building towards commercialization outcomes

22. The Grant
• $50,000 in granted funds
– Cap of $5,000 in IDC
• Expectations for use of funds:
– Student Support
– Travel to support Customer Discovery
– Early Prototype Materials and Equipment
– Fees to attend workshop
– Reasonably Justified Expenses to Advance
Commercialization Efforts

23. Application Process
• 3 Person Teams
– PI (Must have current or Previous NSF Funding)
– Entrepreneurial Lead
– Business Mentor
• 1 Page Executive Summary
• 2 Interviews
• Invited to Apply or Wait
• About 1 month from Start to Finish for Process

24. Expected Outcomes
• 100 Customer Discovery Interviews by team
• Clear go/no go decision
• Transition plan if a Go
– New start-up business Creation
– Technology Licensing
– SBIR Proposal around Venture
• MVP-Minimum Viable Product if possible

25. I-Corps Results
• 371 Teams have completed Program
• More than 88 SBIR’s awarded
• More than 171 Companies Created and still
operating
• Expansion of Program to include
– NIH
– DOE
– Mexico!

26. Questions?

27. Key Contacts
Heath Naquin:
Executive Director, SW I-Corps Node
Office of the Vice President for Research
The University of Texas at Austin
hnaquin@austin.utexas.edu

28. Developing the Business of
Technology
SBIR/STTR Funding:
Ready, Set, Apply!
Presenter:
Lisa M. Kurek
Managing Partner
734.930.9741
lisa@bbcetc.com
Copyright © 2015 BBC Entrepreneurial Training & Consulting, LLC

29. What We Do
BBC works with technology-based entrepreneurs and companies on strategies to
advance R&D efforts to commercialization. Through training courses and one-on-one
counseling, the BBC team coaches clients in:
Technology Assessment
Commercialization Planning
SBIR/STTR/Other Research Grant Assistance
Entrepreneurial Training
Grant/Contract Management
Tech-Based Economic Development Programs
The BBC team is nationally recognized for its success in helping clients win federal
funding through the Small Business Innovation Research (SBIR) and Small Business
Technology Transfer (STTR) programs, and use it tactically to propel growth.

30. SBIR/STTR

31. What are SBIR* and STTR**?
Support small business to:
Stimulate technological innovation to
̶ Develop products with commercial merit
$2.5 billion of federal funding to:
* – Small Business Innovation Research
** – Small Business Technology Transfer

32. Where does SBIR/STTR Fit?
Debt
Equity
Non-Dilutive
Component of a Funding Strategy
32

33. SBIR/STTR: Getting Prepared
Your company is eligible
You have determined you have a suitable project
Product development
Technological Innovation
You have or will have the appropriate resources
Research facilities
Research personnel
Funding cycles match with your commercialization
goals
Are You Ready?

34. Goal of SBIR/STTR Programs
Source: SBIR and the Phase III Challenge of Commercialization: Report of a Symposium. NAS, 2007.
a.k.a. “Come Back When

35. The Basics of SBIR: 3 Phases
35
3 Years, ~$1,150,000+
Phase I:
6 Months, $150K
Phase II:
2 Years, ~$1,000 K+
Phase III: Commercialization (no federal SBIR/STTR $$)

36. SBIR/STTR: Planning 3 Phases
Phase I Goal = FEASIBILITY
Feasibility of what? Whatever you hope to accomplish in Phase II!
Phase II Goal = Further R&D
How far? You decide based on…
ULITMATE GOAL= COMMERCIALIZATION!
Goals
36

37. Key Questions…
The Project
What do you need the money for?
The Company (there has to be one…)
Who owns it?
What resources does it have?
̶ Facilities
̶ People
Where will it get what it needs?
37

38. The Project – QUESTIONS:
$ for PRODUCT Development
What is the intended product?
What applications will it be used for?
What has been done to date?
How much is left to do?
38

39. The Project – QUESTIONS:
Based on “technological innovation”
What is the technological innovation that will
enable the product to achieve the desired
performance?
How certain are you that it will work?
Is there risk of failure?
Will the product be revolutionary or evolutionary?
39

40. The Project – QUESTIONS:
Credible Commercialization Strategy
Is there a market identified?
Has a competitive analysis been done?
How will the company generate revenue?
What additional resources will be required to achieve
commercialization?
Have sources of those resources been identified?
̶ Strategic Partners
̶ Sources of capital
40

41. The Company – QUESTIONS:
A for-profit entity?
Who owns the company?
May need to refer to cap table
Who controls the company?
Does the company have its own research facilities?
Is there a qualified PI with primary
employment at the company?
41

42. Eligibility for Funding
Small business
For-profit
U. S. owned and controlled
< 500 employees
Located in the U.S.
R&D must be performed in the U.S.
42

43. Resources: Facilities Requirement
The research work to be performed by the awardee
is to be conducted in:
Company controlled
Research space
Suitable to do the work proposed
43

44. Resources: Where is the PI?
SBIR: PI at least 51% EMPLOYED at small
business at the time of and for the duration of the
award
STTR: At small business or non-profit research
partner. Must have an ‘official relationship’ with the
small business and at least 10% effort on the project
(except for NSF)
** APPLICANT IS ALWAYS THE SMALL BUSINESS**
Principal Investigator Rules
44

45. SBIR/STTR

46. DO YOUR HOMEWORK
46

47. What is SBIR/STTR….
Mandated by legislation (NDAA FY2012)
Current authorization for 6 years through 2017
Separate legislation for SBIR and STTR
Applies to agencies with extramural research budgets that
exceed certain thresholds
SBIR applicable to 11 Agencies
STTR applicable to 5 of the 11 SBIR agencies
Participation mandatory
SBA “oversees” program implementation and compliance
SBIR/STTR Policy Directive
Small Business Size Regulations
47

48. Participating Federal Agencies*
SBIR and STTR SBIR Only
DOD - $1,200 m USDA - $19 m
HHS - $690 m DOT - $4 m
NASA - $204 m EPA - $7 m
DOE - $164 m DOC - $9 m
NSF - $124 m DoED - $8 m
DHS - $23 m
48
TOTAL: >$2.4 B FY 2011
DoD, 49%
HHS, 28%
NASA, 8%
DoE, 7%
NSF, 5%
Others, 3%

49. Agency Differences
Receipt dates, number & timing of solicitations
Type of award (grant or contract)
Proposal review process
R&D topic areas
$ of award (both Phase I and II’s)
Proposal success rates
Profit or fee allowed
Gap funding provided (competing continuation
grants)
Payment types & schedules
49

50. Key Agency Difference…

51. Agency Differences -- Grants vs. Contracts
Grants – Investigated Initiated Topics
HHS (95% $$), NSF, USDA, DOE, ED
Some agencies might have topic areas (aka “buckets”)
Open communications
External peer review
Contracts – Agency-specified topics
DoD, NASA, DHS, EPA, DOT, DOC, ED, HHS (5% $$)
Must respond to a topic
Limited time to prepare ( 8-12 weeks)
Limited communications during open solicitation
Internal review

52. SBIR/STTR Deadlines

53. 53
SBIR Information: SBIR.gov
Links to all 11 agencies
Search past awards
Current/past solicitations
www.sbir.gov

54. Search Past Awards

56. Agency Specific Homework
Read Agency Website – in
detail!
Search agency-specific
database of funded projects
Review current (if open) and
past solicitations
Talk to Agency Personnel
Drill Down to the Agency Level

57. GRANTING AGENCIES

58. Contracting Agencies

59. For More Agency Information
2015 National SBIR/STTR Conferences
June (DC?) and November (Austin?)
Co-located with TechConnect World & National
Innovation Summit
NIH SBIR/STTR Conference
Seattle, WA, October (tba) 2015
59

60. SBIR/STTR

61. SBIR/STTR Proposal Preparation
Acquire preliminary data
Conduct scientific literature search and
market research
Plan experiments/R&D activities
Develop commercialization strategy
Convene the technical team
Secure facilities and other resources
Key Planning Steps

62. SBIR/STTR Proposal Preparation
What you are going to do?
Why is it worth doing?
Who is going to do the work?
Where are you going to do the work?
How much will it cost?
Primary Questions to be Answered

63. Important Reminder
READ THE ENTIRE SOLICITATION!
Information provided by agencies is subject to
change without notification.
Skipping this step can have dire consequences!
Before you begin:

64. SBIR/STTR - Most Common Pitfall
64
Year 1 Year 2 Year 3 Year 4
Product
Development
Business
Development
Year 1 Year 2 Year 3 Year 4
Product
Development
Business
Development

65. Keys to Success
1. Be under-confident and over-prepared
2. Start early
3. Submit early
4. Be under-confident and over-prepared
“There is no grantsmanship that will turn a bad
idea into a good one, but there are many
ways to disguise a good one.”

66. What are SBIR* and STTR**?
Support small business to:
Stimulate technological innovation to
̶ Develop products with commercial merit
$2.5 billion of federal funding to:
* – Small Business Innovation Research
** – Small Business Technology Transfer

67. BBC’s Grant Assistance
Assistance in identifying appropriate solicitations
Guidance on proposal preparation, including
assessments of technical objectives and hypotheses,
and drafting supporting documents Detailed technical
reviews of proposals with extensive feedback
Review and edits on draft and final versions
How-to information on agency registrations and
electronic submission
Post-submission support, from filing assurances and
developing in-house grant support systems, to proposal
revision and resubmission
67

68. BBC Team
Lisa M. Kurek, MS – Managing Partner
Michael P. Kurek, PhD, MBA – Partner
Andrea Johanson, PhD – Principal Consultant
Becky Aistrup, – Principal Consultant
Kris Bergman – Consultant, Grants and Contract Management
Jayne Berkaw – Director, Marketing and Outreach
68

69. Next steps? Visit www.bbcetc.com
SBIR/STTR Assessment

70. Developing the Business of
Technology
SBIR/STTR Funding:
Ready, Set, Apply!
Presenter:
Lisa M. Kurek
Managing Partner
734.930.9741
lisa@bbcetc.com
Copyright © 2015 BBC Entrepreneurial Training & Consulting, LLC

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