SBIR and STTR, America’s Seed Fund
Terms:
SBIR - Small Business Innovation Research
STTR - Small Business Technology Transfer
Seed Fund - Seed funding, sometimes known as seed capital, is a form of securities offering in which an investor invests capital in a startup company in exchange for an equity stake or convertible note stake in the company.
The SBIR and STTR programs are highly competitive programs that encourage domestic small businesses to engage in Federal Research/Research and Development (R/R&D) with the potential for commercialization. Through a competitive awards-based program, SBIR and STTR enable small businesses to explore their technological potential and provide the incentive to profit from its commercialization. By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated, and the United States gains entrepreneurial spirit as it meets its specific research and development needs.
Central to the STTR program is the partnership between small businesses and nonprofit research institutions. The STTR program requires the small business to formally collaborate with a research institution in Phase I and Phase II. STTR's most important role is to bridge the gap between performance of basic science and commercialization of resulting innovations.
The Virginia SBDC Innovation Commercialization Assistance Program (ICAP), is a great precursor for doing the necessary work to be in a position to apply for the SBIR or STTR program.