Is Your Startup Right for Non-Diluting SBIR-STTR Government Grant Funding?

Serving as Co-Director of the San Francisco Founder Institute is one of the most rewarding things I do. I love working with this like-minded global organization 100% dedicated to helping founders from all backgrounds take their startup ideas from concept to enduring, meaningful company. Here is my most recent contribution: 

With the seemingly countless modes of fundraising out there, it can be hard figuring out which option is best for your startup. One of the best ways to raise money is by applying for grants, but they're not without their ins and outs. In this blog post, I outline what founders should consider before applying for SBIR-STTR government grant funding. This is an article I wrote for the Founder Institute blog.

Raising capital to launch and grow their startups is a persistent challenge among founders. Bank loans are out of reach for many and the prospect of taking on growth-crippling heavy debt can be insurmountable. That’s why many founders look to outside investors to acquire the capital they need to launch or grow their startups. But taking on investors comes with a unique set of challenges such as equity splits, dilution and even control of the company.

For this reason, a growing number of founders in certain fields have looked to government grants as a source of non-diluting funding for their startups. But of the approximately $500 billion in grants the U.S. federal government awards each year, only about 5% of those are awarded to for-profit businesses. The fact of the matter is that there are very few grants available to businesses. About 95% of all the federal government grants awarded are given to states, counties, cities, universities, public safety entities, governmental agencies, nonprofit organizations, cultural institutions and other entities that support strategic national priorities (SNPs).

However, there is one federal grant that is specifically targeted to for-profit businesses—the Small Business Innovation Research (SBIR) grants program. The SBIR program was established for the purpose of strengthening the role of innovative small businesses in federally-funded research and development (R&D). The program’s goals are to – Click here to read the full article at the Founder Institute blog.