This document provides information about leveraging SBIR/STTR funding for early-stage technology development. It discusses the basics of SBIR/STTR programs, why they should be part of financing tactics, and best practices for competing for this funding. It also describes Montana's extensive innovation ecosystem and resources for technical assistance through the Montana Innovation Partnership.

2. Leveraging SBIR/STTR funding for your
early-stage technology development
1) SBIR/STTR basics – what they are, who and what is right for
this type of funding
2) Why these programs should be part of your financing tactics
for your business and best practices for successfully
competing for this funding
Ann Peterson
Program Director
ann.peterson@montana.edu

3. MontanaInnovation
Ecosystem
Montana has an extensive and highly collaborative
innovation ecosystem supporting high-tech development
• Montana Bioscience Alliance
• Montana Bioscience Cluster Initiative
• Lab and university partnerships
• Accelerators
• Broad local and state support fostering economic
development
• MonTec and future incubator spaces
• Montana Innovation Partnership powered by MSU
TechLink Center
 45% success rate for MTIP clients
submitting SBIR/STTR applications
 Montana ranks #13 among all states
and territories for number of
SBIR/STTR awards per capita.
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4. montanainnovationpartnership.org
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Montana’s source for free
SBIR/STTR technical
assistance through the
Federal and State Technology
(FAST) Partnership Program
Funded by:

5. SBIR 101
What is SBIR and who is right for it?
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6. Small Business Innovation Research
Small Business Technology Transfer
• Congressionally mandated program
• Currently ~$4 billion in federal set-asides
• 3.2% SBIR for federal agencies with an extramural R&D budget > $100million
• 0.45% STTR for those with extramural R&D > $1billion
• Stimulate technological innovation in the private sector
• Strengthen role of small business in meeting Federal Research/Research & Development needs
• Increase private sector commercialization of innovations developed through Federal SBIR/STTR R&D
• Increase small business participation in Federal Research/R&D
• Foster and encourage socially and economically disadvantaged small business and women-owned business concerns in the
areas of technological innovation

8. A few winners

9. Why consider
SBIR/STTR
 Non-dilutive seed funding for early-
stage applied translational r&d and
prototype development
 Clarity on your product
development plans and initial go-to-
market strategies
 De-risks for later investors
 Intellectual property and data rights
protection for 20 years *
 Direct follow-on Phase III awards –
no need for further competition
* See § 8(b)(4) of the SBIR/STTR Policy Directive

10. Who and which technologies are right and how will
our proposal be reviewed?
Small Business Innovation
Something that
 is new or improved
 has marketable potential
and includes
 the development of new
technology
 the refinement of existing
technology
 or the development of new
applications for existing technology
Research
 Intellectual Merit – Strength of
the scientific/technical approach
 Impact – Potential to benefit
society and achieve a specific
outcome
 Company/Team – Ability to
competently carry out the
project AND suited to aggressive
commercialization
US based and majority US owned
For profit
Under 500 employees, including all
affiliates
Focus for funding is on performing
R&D – Not purchasing equipment,
commercializing a technology that
has already been developed, or
one that has very low risk and only
needs capital

11. Three Phase Program Structure
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Commercialization
Discovery Prototyping
Phase I Phase II Phase III
Feasibility and Concept
Development
3-12 months
~ $50K - $275K+
Research and
development
24 months
~$500K - $1.7million
Not SBIR funding
Transition to an agency
program or sales into
private sector
Range of additional support:
“Phase 0” assistance
Phase IIB
Direct-to-Phase II
FastTrack
TABA – technical and business assistance
I-Corps
Commercialization Readiness

12. NIH SBIR/STTR Program Phases and Funding Levels

13. Differences between SBIR and STTR
SBIR STTR
Small Business
(applicant)
67%
Sub-contract
33%
Discretionary
30%
Research Institution
30%
Small Business
(applicant)
40%
PI must be
employed
>50% by SBC
PI can be
employed
by either
SBC or RI
(NSF
excluded)
A RI must be involved with an STTR.
Only DOD, DOE, NASA, NIH, NSF, USDA
Extramural r&d budgets >$1Billion.
You may include a research institution
(RI) as a sub-awardee but it is not
required.

14. Contracts vs Grants
GRANT
• Funds support a public purpose
• Investigator-initiated approach
• Less specific topics
• Cannot be used for classified work
• Allows up-front payment
• Q&A about the solicitation are not made public
CONTRACT
• Binding agreement between buyer and seller
• Agency defines scope of work
• Focused topics
• Must be used for classified work
• Invoice upon progress
• During the open solicitation (after pre-solicitation
period), Q&A about the solicitation are made public
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HHS/NIH, NSF, Energy, USDA, NOAA, NIST, ED Department of Defense, NASA, DHS, DOT, EPA
HHS and ED sometimes issue contracts as well.

15. Let’s go!
Pursuing SBIR/STTR for your business

16. Make the leap from scientist to tech founder
• Describe your customers
• Beachhead or first adopters of
your technology
• Longer term addressable market
• Describe the current problem
• Who does it impact, what are
the costs of not adequately
addressing it
• Describe your value proposition

17. Consider multiple
agencies
Space
Technology
Electronics Artificial
Intelligence
Education/
Training
Energy Environment &
Natural
Resources
Life
Sciences
DOD
• • • • • • •
DOE
• • • • • •
NASA
• • • • • • •
NIH
• • • • • •
NSF
• • • • • • •
DOT
• • • • •
EPA
• • • • • •
DoEd
• • • • • •
USDA
• • • • • •
DOC
• • • • • •
DHS
• • • • •
© 2022 Greenwood Consulting Group, Inc.

18. You will be pitching to the agency investor - get to know them
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FAQs, Tutorials,
Award lists (companies and
funded projects by agency)
SBIR.gov
Their specific program rules, what
they fund, their review process
Agency’s SBIR site
Understand the research objectives and
goals of that agency
Agency’s strategic objectives

19. Speakwiththe
topicauthor
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Access to topic authors varies by
agency
NIH program directors are
accessible throughout the year!
Draft your Specific Aims or short
brief about your 2-3 technical
objectives and reach out with a
polite request for a 15-minute
conversation.
Tutorial from SBIR.gov with
guidance here:
https://www.sbir.gov/tutorials/fin
ding-topics/tutorial-2

20. Define clear
technical
objectives,
follow
instructions,
andorganize
yourproposal
preparation
process
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21. Builda Stellar
Team!
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Individuals who will help
you:
 Protect your intellectual
property
 Craft sound sales and
business strategies
 Provide specialized
technical expertise
 Comply with government
accounting requirements

22. Leverage your
ecosystemforbusiness
andtechnicalsupport
• SBA programs like FAST and Small
Business Development Corporations
(SBDCs)
• Procurement Technical Assistance
Centers (PTACs)
• Manufacturing Extension Partnerships
• State Commerce and Economic
Development offices
• Angel and VC network
• Regional accelerators and incubators
• Universities
• Industry Alliances
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23. Thank you!
Ann Peterson
406.994.7788
ann.peterson@montana.edu
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24. Please check out our next event!
https://tinyurl.com/imapctwalunch