Written by Guest Author Chris Mather
Introduction
Many U.S. technology entrepreneurs are increasingly turning to the SBIR/STTR program for crucial early-stage funding and validation. It’s no wonder that the SBA calls the program “America’s Seed Fund”. Among the more than 20 organizations across 11 agencies offering SBIR/STTR opportunities, the Department of the Air Force (DAF), which encompasses U.S. Air Force and Space Force, stands out with one of the most innovative, open, and application-focused SBIR/STTR programs.
In 2023, the DAF made significant enhancements to its STTR program, making it more appealing to entrepreneurs and their university/research institute (RI) partners. We anticipate these changes will continue with the upcoming DAF Open Topic, expected on September 11, 2024.
What Has Changed?
Historically, DAF STTRs offered the same contract award for both Open Topic SBIR and STTR proposals. Since STTRs require 30% of the post-profit award and work to be allocated to the university/research Institute (RI), the funding available to entrepreneurs was reduced. By increasing DAF Open Topic STTR funding levels, the DAF ensured that both the entrepreneur and university receive more funding than in previous STTRs. Effectively, the DAF has subsidized the university STTR portion.
Although an additional $4K in Phase I is not tremendously compelling (I’d rather have it than not, though!), $31K of university customer discovery (the main objective of DAF Open Topic Phase 1 or testing, feasibility work is very attractive. The real advantage, however, comes from the $500K+ of Phase II university research, testing, evaluation or development work, as illustrated in the chart shown. This funding should advance your product and solution closer to commercialization to the DAF, other services or the commercial marketplace. Perhaps most importantly, this non-dilutive, validating funding puts more “money around your idea,” which is something that venture capitalists and other investors really value.
The Bottom Line
Any entrepreneur planning to submit a Phase 1 Open Topic SBIR to the DAF should give serious consideration to an STTR. The financial and developmental advantages are simply too compelling to overlook.
For a deeper give into why you should consider the DAF Open Topic STTR, check out this 30-minute information session:
DAF STTR Open Topic: A Great Opportunity for Technology Entrepreneurs (July 23 Session)
Passcode: #8g%u^ps
How Can APEX Help
APEX is a Partnership Intermediary for the DAF. By virtue of that agreement, we are tasked to assist with tech transition and tech transfer activities. We do this by offering:
Free-of-charge services to entrepreneurs for navigating the DAF SBIR/STTR proposal process
Matchmaking of entrepreneurs and researchers for more productive SBIR/STTR relationships
Programs to develop DAF and University partnerships
To take advantage of our free services for the upcoming DAF Open Topic solicitation (scheduled for release on September 11, with a proposal due date of October 10), join our cohort by clicking here.
During DAF solicitations, we provide training and Q&A sessions that address specific and important aspects of the solicitation. APEX has created the STTReamline™ program, which connects entrepreneurs with universities that are well-versed in DAF Open Topic requirements, have a dedicated contact to make things easy and are motivated to support DAF STTR initiatives.
About the Author
Chris Mather has worked with APEX and the DAF SBIR/STTR program since 2019, advising entrepreneurs on proposal strategy and content. He is a noted entrepreneurial and investment pitch coach with Leveragent. Prior to coaching entrepreneurs, he ran four organizations as GM/CEO, one of which was venture backed with a successful exit.
About Academic Partnership Engagement Experiment (APEX)
APEX cultivates innovation by expanding the American research enterprise for the Department of the Air Force by engaging, connecting, and enabling innovators across academia, industry, and the Department of Defense. APEX utilizes data analytics to identify transformational operational defense solutions in academia, industry, and government sectors; provides process navigation services for academic teams and small businesses and enhances cross-sector engagement by providing direct connections to the technology needs of multiple Department of Defense programs.