EWIB-Capital Region: Unlocking SBIR/STTR Funding to Jumpstart Your Start-up

On July 31, 2024, EWIB-Capital Region held a webinar overview of winning Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants to jumpstart early-stage technology startups presented by Nao Gamo, PhD, MedTech Entrepreneur. The key takeaways from the talk can be found below.

Introduction to SBIR and STTR
SBIR and STTR are often referred to as “America’s Seed Funds.” They are research grants for small businesses in the US that are available from twelve (12) government agencies, including NIH, NSF, Department of Defense, FDA, NASA, etc. These research grants are for technologies that still require some research and development to overcome some kind of risks or challenges until they can become commercialized as a product. There are several types of SBIR/ STTR grants, including (1) Phase I, to show the feasibility, technical merit and commercial potential of an innovation; (2) Phase II, to continue the R&D from Phase I, further develop the product and prepare to track the funding; (3) Fast-track, businesses apply for Phase I and II at the same time; and (4) Direct-to-Phase II, for projects already have the feasibility as shown in Phase I and ready to jump to Phase II.

Several factors must be considered before applying for SBIR and STTR funding, such as eligibility (small businesses must meet citizenship/ residency requirements), the business's goal must match the funding agency/ funding opportunity, the amount and duration of funding, the submission deadline, the expected start date of the award, the effort required, and any special requirements.

Grant proposal preparation
Once the business has decided to apply, it can start to prepare the grant proposal. The goal is to convince the reviewers that you know what you are doing and can complete the project by clearly defining the “Who, What, Where, When, Why.” Dr. Gamo recommends the company talk to the project officer/ manager to learn more about the grants. Also, the company must follow the instructions EXACTLY because if they are not properly done, that can be a reason for rejection without being reviewed. In addition, companies should start their application early, at least two months in advance, especially if they apply for the first time.

Grant Components 

1. Project Description/Research Strategy: Tell a compelling story, provide quantitative metrics, demonstrate preliminary data/ background, address the project’s weaknesses, and use graphics so reviewers can easily understand.
2. Commercialization Plan: Use I-Corps (customer discovery) to show market need and start building relationships with stakeholders (e.g., potential customers, distributors, investors) as this is helpful for letters of support.

Grant proposal submission
Different agencies have different procedures (e.g., NIH uses the eRA Commons portal while NSF uses the Research.gov portal). For NIH, the registration could take a couple of weeks to complete. Also, the company should allow at least one day to upload and double-check everything. If the company is working with a research institution, they may need to do extra paperwork and follow the internal deadline before the actual deadline. After submitting, download the final PDF file to ensure all information is correct.

After submitting a grant proposal

• If the proposal is rejected, it is important to get detailed feedback and check the rules for re-submission (e.g., when and how many times one can resubmit.)
• If the proposal is accepted, check the compliance guidelines and build a good track record of using the fund properly.

Additional tips and resources
These include getting mock reviews, getting advice and feedback, preparing backup plans, preparing for the funding gap between Phases I and II, and checking out available resources (e.g., BioHealth Innovation, TEDCO, NIH, and the Small Business Administration).

Speaker info
Dr. Nao Gamo is a neuroscientist-turned-entrepreneur with experience as a MedTech founder, business development consultant, and investment associate, guiding startups in a range of fields. After 15 years as an academic researcher in neuroscience, she is now the Founder and Chief Executive Officer of NaoCorp, LLC, where she provides grant consulting services for entrepreneurs, researchers, and clinicians with bio- and medical technology companies. She is the Vice President of Business Development at the MDC Studio, a startup studio building health and medical technology companies, and Associate at the Verte Family of Funds, a family of venture funds investing in high-growth companies located in opportunity zones. Dr. Gamo has been recognized as a RealLIST Connector 2021 (for “leaders growing Baltimore’s tech and entrepreneurship network”), Women In Bio Capital Region’s 2021–2022 Rising Star, and a finalist for the 3rd Annual BioBuzz Community Builder Award in 2022.

Submitted by Nhung Hoang