SBIR: Seed capital funding to move Missouri's innovations to market

Did you know that our federal government is the largest single source of early-stage technology financing in the United States? Each year it provides thousands of research topics ranging from medicine, human development, education, military applications, environment, agriculture and transportation to solicit proposals from entrepreneurs, small technology companies and research institutes for funding innovative ideas. It's true!

Eleven federal agencies provide funds to the Small Business Innovation Research (SBIR) program with approximately $2.5 billion each year available for early stage research and development (R&D) projects at U.S. technology companies with 500 or fewer employees. The purpose of the SBIR program is to harness the innovative talents of small technology companies and entrepreneurs for the benefit of the U.S. private sector and government markets.

As part of the SBIR program, each federal agency issues SBIR research solicitations once or twice a year, describing its R&D needs and inviting R&D proposals from small companies — firms organized for profit with 500 or fewer employees. In addition to research solicitations, several agencies will post new program announcements and requests for proposals sometimes on a weekly basis throughout the year. To review a complied list of agencies' announcements, register on the MoFAST Web site at www.mofast.net and follow the links to the Solicitation, dates, agencies subpage.

Many SBIR awards are made to small companies or entrepreneurs who demonstrate in a competitive proposal process that they can perform innovative R&D that serves the federal agency and that may have important commercial applications. An SBIR award provides up to approximately $850,000 in funding directly to small technology companies through a three-phase process.

Phase I: Entrepreneurs or small companies apply first for a six-month Phase I award up to $100,000 to test the scientific, technical and commercial merit and feasibility of a particular innovation. An entrepreneur can apply for a Phase I award without forming a company, but she will need to form a legal entity prior to accepting a Phase I award.

Phase II: If Phase I proves successful, the company may be invited to apply for a two-year Phase II award of up to $750,000 to further develop the innovation usually to the prototype stage.

Phase I and Phase II proposals are judged competitively on the basis of scientific, technical and commercial merit. A pool of reviewers judging the merits of the proposal can include technical scientists as well as business people.

Phase III: Following the completion of Phase II, small companies are expected to obtain funding from the private sector and/or non-SBIR government sources to develop the innovation into a product for sale in private sector and/or government markets.

A parallel program — the Small Business Technology Transfer (STTR) program — provides up to $600,000 in R&D funding directly to small companies working cooperatively with researchers at universities and other research institutions. Selecting solicitation topics and submitting proposals are very similar to the SBIR three-phase process.

For busy entrepreneurs and researchers, MoFAST has created a comprehensive Web site to assist Missouri's companies in developing competitive proposals to submit for SBIR/STTR funding opportunities. This Web site includes detailed information on the different programs, agency links, new program announcements, dates and assistance services.

To help Missouri innovators take advantage of these opportunities, University of Missouri Extension Business and Technology Development Programs and the Missouri Small Business Development Centers created the Missouri Federal and State Technology partnership program (MoFAST).

The goal of the MoFAST program is to help Missouri companies get SBIR/STTR awards by providing assistance, mentoring and financial support. The MoFAST staff can help you find solicitation topic(s) for your innovation, assist in the development of proposal(s) and submit competitive proposals to get SBIR/STTR awards that will provide funding to commercialize your innovations. Seasoned business specialists provide these services with specific expertise in SBIR programs, business assistance and development, corporate management and federal procurement procedures.

To learn more about how to access the MoFAST assistance centers, visit www.mofast.net. Please share this site with anyone you think may find it of benefit. This site was recently reorganized, and we appreciate feedback as to how we can make it even more beneficial for visitors.