FAQ: Why not skip the whole NIH SBIR grant process and go right to looking for investors? Wouldn’t that be faster?
Answer: There are many benefits to developing an SBIR/STTR proposal aside from the potential funding.
The benefits of writing a proposal, aside from the possibility of gaining funding, include the following:
- An opportunity for a review of your ideas and plans and to receive feedback from peers, which helps you refine your ideas.
- Connections with consultants who will likely be beneficial for your business even if it’s not funded.
Benefits If Your Proposal Is Funded
- The business retains intellectual property rights and ownership of the company.
- The government provides resources to aid in the commercialization of the project.
- A history of SBIR/STTR funding helps attract other funding and support. It provides validation that enhances investor interest, showing them you can pull a team together that could develop a product or a service that uses your invention, and that your idea stood up to scientific review.
- It makes your business much more attractive to venture capitalists because other investors have not diluted the value of the company.
Source: Franca-Koh J. & Davis S. Funding and Commercialization Resources for Small Businesses. SBIR Development Center. July 13, 2021.
