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SBIRSBIR – Seed Capital for – Seed Capital for Innovative Small BusinessesInnovative Small Businesses
Senator Enzi’s Senator Enzi’s Fifth Annual Inventors ConferenceFifth Annual Inventors Conference
Cheyenne Holiday InnCheyenne Holiday InnApril 20-21, 2006April 20-21, 2006
Financing start-ups is one of the Financing start-ups is one of the greatest challenges facing greatest challenges facing
innovators in launching new innovators in launching new products and venturesproducts and ventures
The most common sources of The most common sources of start-up capital are…start-up capital are…
Personal savingsPersonal savingsCredit cardsCredit cardsSelling assets (boats & other toys)Selling assets (boats & other toys)Second mortgagesSecond mortgagesLoans & investments from family, friends and …..Loans & investments from family, friends and …..Suppliers, vendors, other businessesSuppliers, vendors, other businessesCommercial bank loansCommercial bank loansPrivate investors, AngelsPrivate investors, AngelsGovernment GrantsGovernment GrantsVenture CapitalVenture Capital
GOVERNMENT GRANTSGOVERNMENT GRANTS
SBIRSBIRSSmall mall BBusiness usiness IInnovation nnovation RResearchesearch
the largest, most accessible source of the largest, most accessible source of
SEED CAPITALSEED CAPITAL for the nation’s innovative for the nation’s innovative
small businessessmall businesses
$2.2 Billion in 2006$2.2 Billion in 2006
SBIRSBIRProgram HighlightsProgram Highlights
National Competition Sponsored by 11 Federal National Competition Sponsored by 11 Federal AgenciesAgencies2.5% R&D Funding Set-Aside for Small 2.5% R&D Funding Set-Aside for Small Businesses to Develop Innovative New Businesses to Develop Innovative New Products and ServicesProducts and ServicesProvide Federal Agencies with Innovative Provide Federal Agencies with Innovative ConceptsConceptsStimulate Innovation & Job Creation in the Stimulate Innovation & Job Creation in the Nation’s Small Business SectorNation’s Small Business Sector
……andandthis capital is in the form ofthis capital is in the form of
grants grants andand contracts contractsno repaymentno repayment
no debt serviceno debt serviceno equity forfeiture no equity forfeiture
no IP forfeitureno IP forfeiture
SBIR is a 3-Phase ProgramSBIR is a 3-Phase Program
PHASE IPHASE I Feasibility Study Feasibility Study Up to $100K and 6-month AwardUp to $100K and 6-month Award
PHASE IIPHASE II Prototype DevelopmentPrototype Development Up to $750K and 2-year AwardUp to $750K and 2-year Award
PHASE IIIPHASE III Commercialization StageCommercialization Stage Use of non-SBIR/STTR FundsUse of non-SBIR/STTR Funds
SBIR PROGRAM ELIGIBILITYSBIR PROGRAM ELIGIBILITY
Small business organized for profitSmall business organized for profit
At Least 51% U.S. owned and At Least 51% U.S. owned and independently operatedindependently operated
Located in the U.S.Located in the U.S.
Fewer than 500 employeesFewer than 500 employees
Principal Investigator (PI) primarily Principal Investigator (PI) primarily employed with the small businessemployed with the small business
DODDOD SBIR/STTRSBIR/STTR
HHSHHS SBIR/STTRSBIR/STTR
NASA NASA SBIR/STTRSBIR/STTR
DOE DOE SBIR/STTRSBIR/STTR
NSF NSF SBIR/STTRSBIR/STTR
DHSDHS SBIR/STTR SBIR/STTR
USDAUSDA SBIRSBIR
DOCDOC SBIRSBIR
EDED SBIRSBIR
EPAEPA SBIRSBIR
DOTDOT SBIRSBIR
11 SBIR/STTR Participating Agencies11 SBIR/STTR Participating Agencies
TOTAL ~ $2.2 B
CAUTION…..CAUTION…..
No two agency No two agency programs are alike!!!programs are alike!!!
Agency DifferencesAgency Differences
GrantingGranting Agencies Agencies Investigator initiatesInvestigator initiates approachapproach Less-specific topicsLess-specific topics More flexibilityMore flexibility
DOD HHS/NIHNASA EDEPA DOT
DOC
ContractingContracting Agencies Agencies Agency establishes plans,Agency establishes plans, protocols, requirements protocols, requirements Highly focused topicsHighly focused topics ProcurementProcurement mechanism mechanism for DOD and NASAfor DOD and NASA More fiscal requirementsMore fiscal requirements
HHS/NIH NSF ED USDA DOE
More Agency DifferencesMore Agency Differences
Number and Timing of SolicitationsNumber and Timing of SolicitationsProposal Due DatesProposal Due Dates
Dollar Amount of Award (Phase I and II)Dollar Amount of Award (Phase I and II)
Proposal Preparation InstructionsProposal Preparation InstructionsProposal Submission Process (electronic/hard copy)Proposal Submission Process (electronic/hard copy)
Financial details Financial details (e.g., Indirect Cost Rates, Gap Funding)(e.g., Indirect Cost Rates, Gap Funding)
Proposal Review Process (Peer/Internal) Proposal Review Process (Peer/Internal) Proposal Success RatesProposal Success Rates
How do I participate?How do I participate?
Annually, each agency releases an Annually, each agency releases an electronic electronic SolicitationSolicitation listing topics listing topics
Small business selects Small business selects topictopic best suited best suited for their for their innovative conceptinnovative concept
Small business Small business prepares a proposalprepares a proposal following following solicitation guidelinessolicitation guidelines
Submit proposalSubmit proposal on or before due date. on or before due date.
next…next…
Agency Agency reviewsreviews proposals (peer/internal) proposals (peer/internal)Proposals are Proposals are ranked ranked by review scoresby review scores determined bydetermined by quality, responsiveness and quality, responsiveness and team qualificationsteam qualificationsAwards assigned according toAwards assigned according to ranking ranking until until funding is spentfunding is spentSmall business is Small business is notified of awardnotified of awardProcess is Process is lengthy (6-12 mos.)lengthy (6-12 mos.) and and agency agency specificspecific
These programs are These programs are very competitive…very competitive…
Depending on the agency, Depending on the agency, 8-15%8-15% of the Phase I proposals and of the Phase I proposals and
40-50%40-50% of the Phase II proposals of the Phase II proposals are funded…are funded…
These programs are These programs are very competitive…very competitive…
Depending on the agency, Depending on the agency, 8-15%8-15% of the Phase I proposals and of the Phase I proposals and
40-50%40-50% of the Phase II proposals of the Phase II proposals are funded…are funded…
……and not forand not for everyoneeveryone
Principal Investigator and Principal Investigator and teamteam must be must be qualifiedqualifiedConcept must be Concept must be innovative innovative and address a specific and address a specific topic of interest to the federal agencytopic of interest to the federal agencyInnovation must have Innovation must have commercialcommercial potential potentialOnlyOnly research and development research and development - - no no sales, sales, marketing or manufacturing costsmarketing or manufacturing costsProposal preparation is a Proposal preparation is a daunting taskdaunting taskComputer literacy Computer literacy requiredrequired
How has How has Wyoming Wyoming performed in performed in this national competition?this national competition?
During the first During the first 17 years 17 years of this of this 24 year24 year program, program, Wyoming Wyoming small businesses received small businesses received a total of a total of $5.5 million$5.5 million..
10%10% of the national of the national per capitaper capita average average
During the past During the past 7 years7 years
WyomingWyoming small businesses have received small businesses have received a total of a total of $23 million$23 million
110%110% of the national of the national per capitaper capita average average
How was thisHow was this turn-aroundturn-around achieved?achieved?
TheTheWyoming SBIR/STTR InitiativeWyoming SBIR/STTR Initiative
(WSSI)(WSSI)
an economic an economic diversificationdiversification program program
funded byfunded byThe Wyoming Business CouncilThe Wyoming Business Council
and administered byand administered byThe University of Wyoming Office of Research The University of Wyoming Office of Research
and Economic Developmentand Economic Development
The WSSI MissionThe WSSI Mission
To To encourage encourage andand assist assist all all eligibleeligible Wyoming Wyoming residentsresidents to to participateparticipate in the in the
SBIR SBIR andand STTR STTR programs programs
What does the What does the WSSIWSSI do? do?
Provides Provides state-wide outreachstate-wide outreach on an on an individual basis to encourage small individual basis to encourage small business SBIR & STTR participationbusiness SBIR & STTR participation
Conducts Conducts state-wide conferences and state-wide conferences and workshopsworkshops providing opportunities to providing opportunities to meet with federal agency program meet with federal agency program specialists and Wyoming award winners.specialists and Wyoming award winners.
TheThe WSSI WSSI alsoalso……
Provides Provides one-on-one guidanceone-on-one guidance in the in the preparation of preparation of competitive proposals.competitive proposals.
Publishes a monthlyPublishes a monthly e-newsletter e-newsletter with with current information on agency solicitations, current information on agency solicitations, due dates, regional and national due dates, regional and national conferences and workshops, a listing of conferences and workshops, a listing of additional resources, and other additional resources, and other SBIR/STTR news and topics of interest. SBIR/STTR news and topics of interest.
But of greatest importance to But of greatest importance to Wyoming residents…Wyoming residents…
the the WSSIWSSI administers theadministers theinnovative, popular and innovative, popular and
very successful…very successful…
WSSIWSSIPhase 0 ProgramPhase 0 Program
If If YouYou Decide Decide You’re You’re Going To ParticipateGoing To Participate
In The SBIR Grant In The SBIR Grant Process…Process…
Then you will want to take advantage of Then you will want to take advantage of thethe
WSSI Phase 0 ProgramWSSI Phase 0 Program
$5,000$5,000Planning Planning GrantGrant
NoNo Payback Of Funds Payback Of Funds
$120,000/year$120,000/year from the Wyoming from the Wyoming
Business CouncilBusiness Council
Administered through the UW Administered through the UW
Research OfficeResearch Office
Typically Two $5,000 Typically Two $5,000 awards/monthawards/month
2005 – 50% award rate!2005 – 50% award rate!
Phase 0 WSSIPhase 0 WSSI
Modeled After The Federal ProgramModeled After The Federal Program
Competitive ProcessCompetitive Process
Prepares You For the SBIR CompetitionPrepares You For the SBIR Competition
Reviewer FeedbackReviewer Feedback
Where To Where To BeginBegin……
www.uwyo.edu/sbir
WSSI Phase 0WSSI Phase 0
Solicitation on Web Site Solicitation on Web Site
Phase 0 Template Provided Phase 0 Template Provided
Sample Phase 0 Provided Sample Phase 0 Provided
Phase 0 ProcessPhase 0 Process
Submit Submit electronicallyelectronically by 5:00 p.m. the by 5:00 p.m. the first of each month first of each month (regardless)(regardless)
ReceiveReceive Email Verification of Receipt Email Verification of Receipt
Proposals Proposals Evaluated Evaluated (3 reviewers)(3 reviewers)
Funding Recommendations MadeFunding Recommendations Made
Awards announcedAwards announced about the 10 about the 10thth of of each montheach month
Phase 0 Process cont.Phase 0 Process cont.
If Chosen For AwardIf Chosen For Award– Receive Contract, Reviewer Comments, Receive Contract, Reviewer Comments,
Assigned a MentorAssigned a Mentor– Receive $2,500 up frontReceive $2,500 up front– Receive $2,500 after Contract is fulfilledReceive $2,500 after Contract is fulfilled
Draft Reviews Completed By MentorDraft Reviews Completed By MentorMentor Paid In FullMentor Paid In FullProof of Submission to Target AgencyProof of Submission to Target AgencyFinal Copy of Proposal Submitted to WSSIFinal Copy of Proposal Submitted to WSSI
If Not Chosen For AwardIf Not Chosen For Award– Receive Review Comments, Encouraged to Receive Review Comments, Encouraged to
ResubmitResubmit
Tricks To Winning?Tricks To Winning?
Read the SolicitationRead the Solicitation– Evaluation CriteriaEvaluation Criteria
Follow the Instructions!!!Follow the Instructions!!!
Use the TemplateUse the Template– Follow the Format Follow the Format
Ask QuestionsAsk Questions
WSSI Electronic NewsletterWSSI Electronic Newsletter
– Updates Updates (award winners, etc.)(award winners, etc.)
– Agency Openings/ClosingsAgency Openings/Closings
– Upcoming Conferences, etc.Upcoming Conferences, etc.
Sign Up for the WSSI Electronic Sign Up for the WSSI Electronic
Newsletter on the WSSI Web SiteNewsletter on the WSSI Web Site
www.uwyo.edu/sbirwww.uwyo.edu/sbir
or contactor contact
Eugene (Gene) WatsonEugene (Gene) Watson
Program ManagerProgram Manager
307-742-7162307-742-7162
307-760-0456 cell307-760-0456 cell
[email protected]@wyoming.com
Kelly Haigler CornishKelly Haigler Cornish
Outreach CoordinatorOutreach Coordinator
307-766-2520307-766-2520
1-866-703-3280 toll-free1-866-703-3280 toll-free
[email protected]@uwyo.edu
……or or contact the staffcontact the staff of of these these partner organizationspartner organizations
located in located in six regional offices six regional offices throughout Wyomingthroughout Wyoming
- Manufacturing-WorksManufacturing-Works- Wyoming Business CouncilWyoming Business Council - Wyoming Small BusinessWyoming Small Business Development Development
CentersCenters
Questions?Questions?
