Is My Technology Fundable by SBIR/STTR?
By Becky Aistrup
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) are non-dilutive R&D grant programs to fund small companies’ risky technologies. SBIR and STTR fund small businesses for development of technologies into products if they are based on a scientific, technological innovation. You must explain how your technology advances the current state of the art in your field, and how you will commercialize it to solve a problem. Many non-traditional technologies that you might find surprising are now being funded by various agencies with their SBIR/STTR programs. EdTech, FinTech, and gamification are just a few examples:
EdTech
Per Investopedia, “EdTech refers to hardware and software designed to enhance teacher-led learning in classrooms and improve students' education outcomes.” Although many technical approaches are being developed, EdTech innovators are generally seeking to improve on the existing educational model through query engines, personalization and adaptive education, among others.
The obvious agency to look to for EdTech SBIR funding is the Department of Education (DOEd). However, innovators need to be aware that the DOEd has a small annual SBIR budget (approximately $7.5 million) and often focuses on specific issues that may not be directly related to “EdTech”. Remember that training and education are important elements at schools, but also for industry and military personnel. Over the past several years, the National Science Foundation (NSF), Department of Defense (DOD), National Institutes of Health (NIH) and others have funded SBIR/STTR projects in this category.
Fintech
As defined by Investopedia, “Financial technology (better known as Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. At its core, Fintech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones.” The use of blockchain, new digital lending and investment platforms, workflow digitization, and cryptocurrency add the element of “technical innovation” to Fintech, and makes it a potential SBIR/STTR project. Since 2019, agencies including the US Department of Agriculture (USDA), the NSF and the Air Force have funded such projects. If you can clearly describe to reviewers the technological innovation in your financial technology and how it meets an agency’s focus, SBIR/STTR may be a viable funding source.
Gamification
Wikipedia defines gamification as “the strategic attempt to enhance systems, services, organizations, and activities by creating similar experiences to those experienced when playing games in order to motivate and engage users.” Technologies such as game design elements, and game principles such as dynamics and mechanics are applied outside of the context of a game. These innovative algorithms and technologies are potentially fundable through SBIR/STTR. The Army, Navy, Air Force, NIH, USDA, and NSF are among those that fund gamification through SBIR/STTR.
Questions about whether your company and technology may be appropriate for these great sources of nondilutive R&D funding? Contact grIP Senior Advisor Becky Aistrup at becky.aistrup@gripventure.com.