Helping Tech Firms Make a Huge Impact
The Small Business Innovation Research (SBIR) program provides funding to help entrepreneurs, startups, and small businesses develop innovative technologies, products, and services that address the specific needs of federal agencies. Organizations can submit proposals for research and development (R&D) projects and, if selected, can receive funding to carry out the research. The SBIR program fosters technological innovation and stimulates economic growth by bridging the gap between scientific discovery and commercialization, helping small businesses bring their innovative ideas to market.
SBIR awards $4B+ annually in these areas: autonomous systems, AI, Machine Learning, cloud computing, cybersecurity, biotechnology, and space technology. Awards range from $50K – $1.5M.
Federal Agencies with SBIR Funding
DoD Agencies
- Army
- Navy
- Air Force
- Defense Advanced Research Projects
- Agency (DARPA)
- Defense Health Agency (DHA)
- Defense Logistics Agency (DLA)
- Missile Defense Agency (MDA)
- National Geospatial-Intelligence Agency (NGA)
- Office of Naval Research (ONR)
- Space Force
- Special Operations Command (SOCOM)
- U.S. Cyber Command (USCYBERCOM)
- U.S. Transportation Command (USTRANSCOM)
Civilian Agencies
- Small Business Administration (SBA)
- Department of Agriculture (USDA)
- Department of Commerce (DOC)
- Department of Education (ED)
- Department of Energy (DOE)
- Department of Health and Human Services (HHS)
- Department of Homeland Security (DHS)
Investing in the Future:
VC’s Portfolio Companies Can Accelerate Innovation with SBIR
Phase 1 – Proof of Concept
- 6-12 months
- $50K – $275K
- Up to $50K additional available for specific purposes (matching funds from third parties or international collaboration)
Phase 2 – Technology Development
- 24 months
- Follows successful completion of Phase I
- $750K – $1.8M
- Up to $500K additional available for specific purposes
Phase 3 – Commercialization
- Commercialization and transition to the commercial market or the multi-billion-dollar federal contracting marketplace
- Funding comes from non-SBIR resources (private investors, government contracts, or sales revenue)
- Funding depends on project’s success and market potential
Why VC’s Should Leverage DWPA for SBIR Investment Dollars with their Portfolio Companies
Deep Water Point & Associates (DWPA) helps our clients thrive and grow in the complex federal market by offering a unique blend of government expertise and industry insights. Our 450+ government SMEs have an average of 32 years of experience providing agency knowledge and technology depth across the DoD, IC, Federal Civilian, and Health and Life Sciences markets. By partnering with DWPA, VCs can mitigate risk, navigate complexities, and increase the likelihood of success for startups wanting to sell in the U.S. Federal marketplace. We offer:
automated sbir opportunity alerts
Using AI to identify SBIR opportunities aligning with specific interests and strengths of portfolio companies, enabling accelerated growth through quicker bid decisions and wins.
sbir proposal creation & assistance
Crafting compelling content to drive offerings that improve your probability of winning SBIR opportunities and dollars.
sbir training
Educating VC’s and portfolio companies on the SBIR market and best practices.
market assessment & business justification
Providing primary source and data driven insights into the total addressable market (TAM) within the Federal government for the portfolio companies offering identification of government spend, competition, and routes to market.
transaction advisory services
Building superior M&A situational awareness with unparalleled buy-side practitioner experience.
Benefits for Small Businesses
EARLY-STAGE FUNDING
Provides early-stage, high-risk funding for R&D projects, enabling entrepreneurs, startups, and small businesses to explore innovative ideas and technologies.
NON-DILUTIVE CAPITAL
SBIR grants and contracts do not require equity stakes, allowing businesses to retain ownership and control.
COMMERCIALIZATION SUPPORT
Assists small businesses in facilitating the transition of innovative technologies to the market.
INCREASED COMPETITIVENESS
Enhances the ability of entrepreneurs, startups, and small businesses to compete in the marketplace by developing cutting-edge technologies and solutions.
Benefits for VCs
ACCESS TO PROMISING VENTURES
VCs actively seek start-ups with disruptive technologies. SBIR awardees often fit this profile, making them attractive investment opportunities.
DE-RISKING INVESTMENTS
SBIR funding de-risks early-stage ventures. VCs can leverage this government-backed validation to confidently invest in companies with innovative solutions.
ALIGNMENT WITH NATIONAL PRIORITIES
SBIR projects align with federal R&D needs, ensuring that VCs invest in areas critical to national security and economic growth.
Benefits of Selling to the U.S. Federal Government
Validation and Credibility
Securing a federal contract demonstrates that a product meets a critical need, provides tangible value, and has undergone a rigorous decision process designed to filter out weaker offerings.
Market Expansion
Selling to the government can significantly expand a company’s customer base and revenue potential.
Stability and Consistency
Government contracts often provide stable, long-term revenue streams.
Innovation Impact
Selling new technology to the government contributes to improving government operations, efficiency, and citizen services.
Compliance and Security
Adhering to specific standards and regulations ensures that a product follows secure development practices and contributes to overall cybersecurity efforts.
Intellectual Property Opportunities
Companies engaging in R&D activities with the U.S. Government must understand regulatory requirements related to intellectual property (IP), properly protecting preexisting IP and conveying intended rights for new IP are crucial considerations.
