Small Investment Business Opportunities

							Small Business Innovation
Research/Small Business
Technology Transfer
Opportunities at the
National Science Foundation
         Winslow Sargeant, Ph.D.
   Former SBIR/STTR Program Manager
          STTR/SBIR-HBCU/MI
           Technical Conference
                AAMURI
             Huntsville, AL
           January 30-31, 2006
Origins of Federal
SBIR/STTR Programs
   Federal Research & Development Needs can
    be met by:
       Small Business
       Academia, Federal Labs
       Large Business
   Small Business is a key contributor to the
    Economy of the Nation
       Job Creation
       Wealth Creation
Employment of Scientists
and Engineers*
                                   Education
                                   Sector
36%                18.50%
               E
                                   Government
                                   Sector
      S
                       13%
                   G
                                   Large
                                   Business/Industry
                                   Sector
           L                       Small
                                   Business/Industry
          32.50%                   Sector
                   * Data from NSF Science Indicators
NSF’s Vision
Enabling the Nation’s future
 through discovery, learning, and
 innovation…*




*Joe Bordogna, fomer Deputy Director of the National
 Science Foundation
NSF “Unique” Features
   Phase I Grantees Workshop
       Commercialization Planning Assistance
   Phase II Grantees Conference
       Networking Opportunities
          Among small businesses

          With investors

   Phase IIA
       Scientific/Engineering Research Supplement
            Small pilot program co-funded by the Centers of
             Research Excellence in Science and Technology
             (CREST) Program (NSF Education & Human Resources
             Directorate)
             minority institution subcontract (must be CREST
             grantee)
   NSF “Unique” Features
          (cont)
 Phase   IIB
   Commercialization Incentive   Supplement
    with 3rd Party Match
 RAHSS
   Research    opportunities for High School
  students
 SBIR   MatchMaker
   Connecting   NSF Phase II Grantees with
   Investors
   SBIR “Innovation” Model
                     Private Sector Investment/
                      Non-SBIR Federal Funds
                        (before/during/after!)


                                                   PHASE III
                          PHASE II
   PHASE I                                          Product
                          Research
  Feasibility                                     Development
                           towards
  Research                                             to
                          Prototype
    100k                                          Commercial
                             500k
                                                    Market



                                         Taxes


Federal Investment
    SBIR / STTR Participating
            Agencies
                   DOD    SBIR/STTR
                   HHS    SBIR/STTR
                   NASA   SBIR/STTR
                   DOE    SBIR/STTR
                   NSF    SBIR/STTR ~104M
                   DHS    SBIR
                   USDA   SBIR
                   DOC    SBIR
                   ED     SBIR
                   EPA    SBIR
TOTAL ~ $2.0+ B    DOT    SBIR
  Est. FY 2006
Doing Business with NSF
 NSF is not the Final Customer
 NSF is not buying your
  product/process/software or your intellectual
  property
 NSF has broad market driven technology
  topics:
  you pose the problem, propose the
  solution, and identify the opportunity
 NSF wants to see you successfully
  commercialize your high-tech research
 You need investment dollars beyond NSF
  SBIR/STTR
SBIR/STTR Phased
Project Structure
   Phase I Feasibility Research – ~10-15%
    success rate at NSF
       SBIR – 6 months – up to $100,000
       STTR – 12 months – up to $100,000
   Phase II – Concept Development – ~30-40%
    success rate at NSF
       SBIR/STTR – 24 months up to $500,000
   Phase IIB unique to NSF – Matches Third
    Party Investment
       NSF - $50,000 to $500,000 (Phase II + Phase IIB= 1M max)
       Investor - $100,000 to $1,000,000
   Phase III – Commercial Application: Non
    SBIR, primarily Private Funding
Partnerships Opportunities
in SBIR/STTR
   SBIR – Partnership Optional
       Small Business “Prime” (I.e., Grantee)
       Phase I up to 1/3 of budget can be out-sourced
       Phase II up to ½ of budget can be out-sourced
   STTR – Partnership Required
       40% to 70% of the research by the Small
        Business
       30% to 60% of the research by
        Academia/FFRDC* (I.e., Subawardee)


 *Federally Funded Research and Development Centers
Faculty Partnership in Small
Business
 Faculty members can own small firms
 Faculty members can be “Senior Personnel”
  on the grant budget
 Faculty members can consult
 Faculty members can be Principal
  Investigators (with official leave from
  university)
 Faculty members can be part of a university
  subcontract
 University laboratories can provide analytical
  testing and other support services
Roles for Students &
Teachers in Small Business
Grants Unique to NSF
 Supplemental Grants to SBIR/STTR
  companies
 REU – Research Experience for
  Undergraduates and RAHSS****
       Typically $6,000 support per student
       Up to 2 students per year/per grant
   RET – Research Experience for Teachers
    (K –12 & Community College Faculty)
       Typically $10,000 support per teacher
       Up to 2 teachers per year/per grant
SBIR/STTR Solicitation Topics
   Investment Focused (VCs, Angels)
       Biotechnology (BT)
       Electronics (EL)
       Information Based Technology (IT)
   Industrial Market Driven (Strategic
    Partners)
       Advanced Materials and Manufacturing (AM)
       Chemical Based Technology (CT)
   Special Topics in Response to National
    Needs
       Security Technologies (ST)
       Manufacturing Innovation (MI)
       Emerging Opportunities (EO)
            Solicitation Topics
 12-18 month planning cycle
 Expect for that each Solicitation will offer
  1 or more topics that represent:
       Investment business focused technologies
       Market driven technologies
       Special Topics in Response to National Needs
    Keep a watch on the topic offerings of the
    current solicitation for opportunities most
    relevant to you
       Next Solicitation release: by March 1, 2006 for
        June 13, 2006 deadline
       Topics: Manufacturing Innovation, Advanced
        Materials, Information Technologies,
        Emerging Opportunities.
Phase I Submissions
 FY07 Solicitation #1 opens on or before March 1,
   2006
  4 Topics:
       Deadline June 13, 2006
 FY07 Solicitation #2 opens on or before
   September 1, 2006
  Topics to be announced

  Deadline sometime early December 2006

 Electronic (via the NSF FastLane Submission
   System)
  Can submit up to 1 month prior to the
   deadline
  Register company immediately

  Submit at least 3 to 5 days before the deadline
NSF Merit Review Process
   NSF “Peer Review”
       Typically reviewed at onsite panel meetings
       Panelists come from
        Academia/Industry/Government Labs
 Phase I – all proposals receive a minimum of
  3 expert technical reviews
 Phase II – all proposals receive in-depth
  extensive reviews
       A minimum of 3 expert technical reviews
       A minimum of 3 expert commercial reviews
NSF Merit Review Criteria
   Intellectual Merit
       Quality of the Research
            Novelty of the idea (not incremental research)(may lie in
             application)
            Major advance to current technology
            Soundness of Science/Engineering
            Awareness/understanding of prior art and value-added
   Broader Impact
       Commercialization Potential
       Benefit to society
       Market Focused
            Who is the Customer?
SBIR/STTR
Commercialization History –
Very Important Part of the
Review!
 Revenue   from SBIR/STTR Funding
 Previous SBIR/STTR Phase II Awards
 Follow-on-Funding from Government
  and Private Sector
 Total Sales Revenues from
  Commercialization of Phase II Projects
     What’s the Government’s Return on Investment?
    EPSCoR/SBIR Advantage
   EPSCOR stands for Experimental Program to
    Stimulate Competitive Research
   NSF strong partnership between EPSCoR and
    SBIR Programs
   EPSCoR may fund Phase I proposals that do not
    make the first cut of “ 1 in 8-10” but are
    recommended for funding
   But you must submit a competitive proposal!
    SBIR/STTR
        1980                  1992

    Commercialization History –
      Arkansas                                                                       Kansas
        Maine                                                                       Nebraska
      Montana
                              2000
    Very Important Part of the
    South Carolina
     West Virginia
                                       ND
                                                                    VT ME            Alaska
                                 MT                                          NH

    Review!
   1985                     ID
                               2001
                                  WY
                                       SD                                    RI
                                                                                     Hawaii
                       NV               NE                              DE
  Alabama
     
 Kentucky Revenue from SBIR/STTR FundingKS               KY
                                                              WV                   New Mexico
  Nevada                                    OK
                                               2002      TN
North
 Oklahoma
          Previous SBIR/STTR Phase II Awards
      Dakota                      NM
                                                 AR
                                           U.S. Virgin
                                                      MS AL
                                                              SC

                                                 LA
                                             Islands
         Follow-on-Funding from Government
Puerto Rico
  Vermont         AK                           2003
 Wyoming
          and Private Sector                Delaware                    PR
  1987
                                                                   VI
   Idaho Total Sales Revenues from
                                      HI      2004
 Louisiana
          Commercialization of Phase II Projects
 Mississippi
South Dakota
                                            Tennessee
                                           Rhode Island
                                                                                  New Hampshire
               What’s the Government’s Return on Investment?
            NSF FY-03 Phase I
                   2004 Phase I Proposals
            (2,272 submissions and 476 awards)
                                Total Submitted = 2598
                                                               Total Awards = 267
                     WA
                                                                                                                NH
                     24/3
                     32/5
                                           MT            ND                                              VT10/0 22/3 ME
                                                                                                         VT 8/2 17/2
                                           20/5
                                           20/7                                                                      13/5
                                                                                                                     15/3
                  OR                                     11/3
                                                         8/3                MN
                  21/5
                  33/0        ID                                           56/11
                                                                            34/1                                        MA 243/59
                                                                                                                           252/28
                                                             SD                        WI                    NY
                             12/1
                             11/2                                                             MI            94/25
                                                                                                            117/11
                                            WY               5/0
                                                             8/3                     21/10
                                                                                      20/5                                 RI 2/0
                                                                                                                              6/0
                                            5/4
                                            2/0                                              52/6
                                                                                             74/8                        CT 273
                                                                                                                         CT 30/2
                                                              NE             IA
                         NV                                                                        OH PA 71/19
                                                                                                             72/5
                                                              5/3
                                                              5/2           15/4
                                                                             9/1                  OH
                                                                                       IL IN 104/11                    NJ 112/21
                                                                                                                          102/10
             CA          0/0
                         4/1         UT      CO                                       48/9 18/6 69/11 WV VA
                                                                                      83/2 21/3                        DE 15/4
                                                                                                                          18/0
            381/75
            550/57                  17/3
                                    23/3    112/28
                                            107/12                                                    11/4
                                                                                                       6/1                  DC 2/1
                                                                                                                                2/0
                                                               KS             MO                           137/14
                                                                                                            110/8    MD 71/13
                                                                                                                        114/6
                                                               12/4
                                                               21/4           19/7
                                                                              30/4           KY 7/2
                                                                                              KY 6/2
                                                                                                        NC 28/8
                                                                                                             42/8
                                   AZ                               OK        AR
                                                                               AR          TN 27/5
                                                                                              16/0
                                            NM                                                            SC
                                 69/10
                                  58/5                              10/2
                                                                    12/1      21/5
                                                                              25/7
                                            39/9
                                            27/4                                             AL     GA 11/6
                                                                                                         10/1
                                                                                       MS 22/3
                                                                                            12/4 37/11
                                                                                                    51/5
                                                           TX                  LA      3/0
                                                                                       7/3
                           AK                            126/21
                                                         123/10                4/1
                                                                               7/2
                           2/2
                           2/0                                                                           FL
                                                                                                         83/7
                                                                                                         47/9         PR 1/1

Green = ESPCoR State                               HI 6/1
                                                      13/2                                    US VI
Red = Awards                                                                                   0/0
Black = Total Submitted Proposals
                                                                                                                      Guam 0/0
Questions to Consider
 Is there a need for the technology?
 Has the necessary team for a
  successful program been assembled?
 Who will benefit from this technology?
 Who are the customers and who will
  invest?
 Has ownership of intellectual property
  been addressed?
        For more information….
    Contact individual agency websites
          Cross-agency website:
               http://www.sbirworld.com
    Conferences / workshops
       National Spring SBIR/STTR Conference, May 15-18,
       2006, Louisville, KY
       National Fall SBIR/STTR Conference,
       November 6-9, 2006, Milwaukee, WI
     Topic search engine for all agencies
     Partnering Opportunities
     State Newsletters
 NSF SBIR/STTR Home Page
http://www.nsf.gov/eng/sbir
                Award Search via
           http://www.fastlane.nsf.gov
                 E.g., by program:
          Small Bus Tech Trans Program
            Small Business Phase I
            Small Business Phase II
       REU:http//nsf.gov/home/crssprgm/reu/start.htm
                       currently: NSF 04-584
    RET: http://www.nsf.gov/pubs/2003/03554/nsf03554.txt
                       currently: NSF 03-554
                    OSDBU = SADBU
      http:// www.nsf.gov/contracting opportunities
NSF SBIR/STTR Home Page
http://www.nsf.gov/eng/sbir
    Custom News Service
    http://www.nsf.gov/home/cns/
    Award Search via
    http://www.fastlane.nsf.gov
    E.g., by program:
    Small Bus Tech Trans Program
    Small Business Phase I
    Small Business Phase II