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America's Seed Fund

America’s Seed Fund is composed of two programs: the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR).

  • Use: R&D;
  • Date closing: -
  • Amount: - 2.0M €
  • Industry focus: Health; ICT;
  • Total budget: 200M €
  • Entity type: Public Agency
  • Vertical focus: rtificial intelligence, digital health, photonics, medical devices
  • Website: https://www.sbir.gov/
  • Funding type: Equity investment;
  • Geographic focus: United States of America;
  • Public/Private: Public
  • Stage focus: pre-seed; Seed;
  • Applicant target: Startup;

Overview

Both SBIR and STTR are award-based programs that will help small businesses develop their technological potential and benefit from its commercialization. The main objective is to boost high-tech innovation and, therefore, promote the entrepreneurial spirit in the United States targeting its specific research and development needs. They target small businesses and encourage them to engage in Federal Research/Research and Development (R/R&D) with enough potential for commercialization.

As the fund aims at helping early-stage startups develop their technology, it provides annual investments worth $200 million, so around 400 startups are funded every year. The average size ticket is $2 million and the verticals include nearly all areas of technology, including artificial intelligence, digital health, photonics, medical devices, etc.

Eligibility criteria

Only United States small businesses are eligible to participate in the SBIR/STTR programs, but companies must also fulfil some requirements, including:

  1. Companies must be organized for profit, with a place of business located in the United States,
  2. Companies must be more than 50% owned and controlled by at least one individual resident in the United States, or by other small business which is more than 50% owned and controlled by at least one individual resident in the United States, and
  3. Companies cannot have more than 500 employees, including affiliates.

In the case of the STTR program, the partnering nonprofit research institution must also meet some eligibility criteria, such as:

-They must be located in the US,

-They must meet one of three definitions:

>It must be a nonprofit college or university,

>It must be a domestic nonprofit research organization, or

>It must be a federally funded R&D center (FFRDC).

The eligibility guide is also available for more detailed information.

The three phases of SBIR/STTR programs

There are three phases:

-Phase I: determining the technical feasibility, merit and commercial potential of the proposed project to set the quality of performance of the small business awardee organization. This phase generally provides $50,000 - $250,000 for 6 months (SBIR) or 1 year (STTR).

-Phase II: companies continue to develop their projects. Funding depends on the results obtained in Phase I and on the scientific and technical merit and commercial potential of the project proposed in Phase II. Awards are generally $750,000 for 2 years.

-Phase III: the objective is to pursue commercialization. However, the SBIR/STTR programs do not fund Phase III.

Last updated on 2023-01-16 15:26

America's Seed Fund FAQ

52 questions
Damla Yildirim
consultant |
What companies are part of the SBIR Fast Track program portfolio?
March 08, 2024 - 10:49
Answer by Sara Gavidia
consultant |
Some of the most successful companies that have scored an SBIR Fast Track grant include Xylyx Bio, Inc., Primetime Life Sciences, LLC, or Genomenon.

Register for Grants.gov alerts to stay updated about SBIR/STTR funding opportunities.
March 08, 2024 - 17:31
Damla Yildirim
consultant |
What is the maximum amount of funding I can receive from the SBIR Fast Track program?
March 08, 2024 - 10:49
Answer by Sara Gavidia
consultant |
The budget available for each project might vary depending on the particular funding opportunity and the needs of the agency. Each agency that takes part in the SBIR Fast Track program has its own funding levels and standards.
The amount of money awarded under the SBIR Fast Track program can vary from a few hundred thousand to over a million dollars, depending on the project's scale and the agency's financial constraints. Make sure you go over the grant amounts and requirements for the SBIR Fast Track program in detail for each agency. This will assist you in figuring out the maximum amount of cash you are eligible for and in comprehending the expectations and guidelines set out by the agency for the use of those funds.
March 08, 2024 - 17:34
Damla Yildirim
consultant |
What are the special requirements for SBIR Fast Track applicants?
March 08, 2024 - 10:49
Answer by Sara Gavidia
consultant |
Some of the special requirements include:
Stage of Development: Many agencies stipulate that your technology or research project must be in a specific stage of development in order to be eligible for the SBIR Fast Track program. Certain organizations could demand, for instance, that you have proven your concept or made substantial strides in the direction of commercialization.
Federal Collaboration: A federal research lab or other federal agency may be required by some agencies to be involved in your technology or research endeavor.
Intellectual Property: The intellectual property related to the technology or research project you are proposing may need to be owned by your firm.
Matching money: For the SBIR Fast Track grant, certain agencies could ask you to contribute matching money from your business or other sources.
Timeframe: Compared to the standard SBIR program, the SBIR Fast Track program could have a shorter timetable for research and development projects. This implies that in order to fulfill the agency's deadlines and milestones, your research strategy may need to be more narrowly focused and efficient.
March 08, 2024 - 17:34
Damla Yildirim
consultant |
What are the eligibility criteria for the SBIR Fast Track program?
March 08, 2024 - 10:48
Answer by Sara Gavidia
consultant |
Company Size: According to the SBA's definition, your business must be small. A small firm is generally defined as one that employs less than 500 people, however this might vary according to the industrial sector and the particular agency.
Ownership: A majority of the voting shares in your firm must be held by citizens or permanent residents of the United States, and it must be independently owned and run.
Principal Investigator: The work carried out at your firm's facilities under the SBIR grant must be done by the person spearheading the research project, who must be principally employed by your company.
Technology Focus: Your proposed technology or research project must align with the goals and areas of interest of the particular agency to which you are applying.
Commercial Potential: Your research project or technology needs to have the potential to be commercialized, and your proposal needs to show how it will be done.
March 08, 2024 - 17:35
Damla Yildirim
consultant |
What is the difference between the SBIR Fast Track program and the STTR Fast Track program?
March 08, 2024 - 10:48
Answer by Sara Gavidia
consultant |
The SBIR Fast Track program is comparable to the Small Business Technology Transfer (STTR) Fast Track program. But there's a crucial distinction.

In order to help small businesses move quickly from research and development to commercialization, the SBIR and STTR programs both offer a more streamlined application process.
March 08, 2024 - 17:35
Damla Yildirim
consultant |
What is the difference between the SBIR program and the SBIR Fast Track?
March 08, 2024 - 10:47
Answer by Sara Gavidia
consultant |
The standard SBIR program, which offers money in three phases, runs concurrently with the SBIR Fast Track program. Phase I involves researching and developing a new technological concept; Phase II involves expanding the technology; and Phase III involves commercializing the technology.

In comparison, the SBIR Fast Track program offers small enterprises a quicker route to funding, emphasizing the acceleration of the commercialization process. This offers a clear route to financial success and enables small enterprises with innovative technological concepts to launch their goods fast.
March 08, 2024 - 17:37
Damla Yildirim
consultant |
Who can apply to the SBIR Fast Track program?
March 08, 2024 - 10:47
Answer by Sara Gavidia
consultant |
All small firms, including those in high-tech sectors including biotechnology, software development, and advanced manufacturing, are eligible to apply for the SBIR Fast Track program. Businesses that fit the Small Business Administration's (SBA) definition of a small business—which includes certain ownership and size requirements—are eligible to participate in the program, which is run by the SBA.
March 08, 2024 - 17:38
Damla Yildirim
consultant |
What is the SBIR Fast Track Program?
March 08, 2024 - 10:47
Answer by Sara Gavidia
consultant |
The SBIR Fast Track program funds small firms with viable commercial ideas for their early-stage research and development (R&D) initiatives, therefore stimulating economic growth and innovation.
Small firms can get accelerated assistance for their R&D initiatives from many government agencies under the SBIR Fast Track program. The initiative helps small entrepreneurs market their inventions by connecting them with financial sources and offering technical support and advice. To help bring breakthrough innovations to market, the initiative also gives small enterprises the chance to work with major corporations, research institutes, and federal agencies.
March 08, 2024 - 17:38
Damla Yildirim
consultant |
What is the most important success criteria?
March 08, 2024 - 10:47
Answer by Sara Gavidia
consultant |
The National Science Foundation considers the qualifications of the person, group, or organization as well as whether the principal investigator (PI) has access to sufficient resources to complete the suggested tasks. The DoD assesses the suitability of the suggested principal/key investigators, consultants, and support personnel. While NASA assesses the technical skills and experience of the principal investigator (PI), project manager, key personnel, staff, consultants, and subcontractors, if any, and considers their consistency with the research effort as well as their level of commitment and availability, the Department of Health and Human Services assesses whether the Program Directors, also known as PDs, the PIs, collaborators, and other researchers are well suited to the project.
Therefore, it is imperative that companies give careful consideration to assembling their teams. They need to be able to provide evidence that they CAN do X, not just that they think they are capable of doing X. In an effort to reduce risk, the government will select teams with a history of providing similar services.

For further information about how to prepare a responsive proposal, visit SBIR proposals tutorial.

A successful proposal is one that effectively addresses the evaluation criteria set forth by the funding agency. This includes innovation, qualifications and experience of the project team, and the potential for commercialization. Understanding these criteria which are common across all SBIR/STTR programs, is crucial as they guide the development of the proposal.
Comparing your approach with the current state of the art is a good way to demonstrate innovation in your proposed work.
Experience, qualifications, and capabilities are crucial for demonstrating the team's competence and executing the project effectively.
The potential market impact of the project and alignment with the funding agency's mission can be demonstrated by understanding and addressing the commercialization criteria in a proposal.
In addition, a successful proposal should emphasize 'win themes', which refer to the key points or strengths of a proposal that align with the evaluation criteria. They are the aspects of your proposal that make it stand out and demonstrate why it should be selected for funding or chosen over competing proposals.

A successful proposal showcases the scientific and technical excellence of your suggested research and development endeavor while also showcasing its potential for business success.
Problem Statement: Summarize the issue or difficulty that your project proposal attempts to address in a clear and succinct manner. The following are essential elements of a winning SBIR Fast Track proposal:
Innovation: Describe how your suggested project would enhance the state of the art in your profession and how it is creative.
Technological Approach: Give a thorough explanation of the technological approach you have in mind, together with a strategy for achieving your goals in research and development.
The viability of your suggested project should be demonstrated, together with a description of any possible technical hazards and your strategy for reducing them.
Commercial Potential: Explain the project's potential for profit, taking into account the market and your strategy for bringing your technology to market.
Experience and Qualifications: Give a brief overview of your business, your credentials and expertise, and why you are the most qualified group to oversee the project.
Budget and Timeline: Provide a thorough budget and timetable for the project you have in mind, taking into account the expenses of carrying out research and development as well as a reasonable completion date.
Eligibility for SBIR: Prove that your organization is a small business and that your idea fits the funding agency's standards as well as the objectives of the SBIR Fast Track program.
March 08, 2024 - 17:40
Damla Yildirim
consultant |
What is the percentage of the participation of nonprofit research institutions or federally funded R&D centers?
March 08, 2024 - 10:46
Answer by Sara Gavidia
consultant |
For SBIR: 33% or less (Phase I); <50% (Phase II)
For STTR: 30 to 60% (Phase I and Phase II)
March 08, 2024 - 17:41
Damla Yildirim
consultant |
Is it necessary for the PI to have a PhD degree?
March 08, 2024 - 10:46
Answer by Sara Gavidia
consultant |
PIs are not required to have a PhD or any other degree, but graduate students and post-doctoral researchers can be PIs on NSF SBIR/STTR Phase I proposals. However, the PI must be legally employed by the proposing small business by the time of the award and for the entire duration of the Phase I project.
March 08, 2024 - 17:54
Damla Yildirim
consultant |
What are the responsibilities of the PI?
March 08, 2024 - 10:46
Answer by Sara Gavidia
consultant |
The PI leads the project and is responsible for communicating with the Program Director and staff, monitoring performance, and submitting required reports to the NSF.
The PI must commit a minimum level of effort to the project, and they must be more than 50% legally employed by the proposing small business for the entire duration of the Phase I project.
March 08, 2024 - 17:54
Damla Yildirim
consultant |
What is a principal investigator on SBIR/STTR Phase I grant?
March 08, 2024 - 10:46
Answer by Sara Gavidia
consultant |
A principal investigator (PI) is a technical expert assigned to an SBIR/STTR proposal by the applicant organization.
The PI must be an employee of the small business on SBIR.
The PI may be an employee of the research institution or the small business on STTR. However, the applicant is always the small business.
The PI must be more than 50% legally-employed by the proposing small business by the award time and for the entire Phase I project duration.
March 08, 2024 - 17:54
Damla Yildirim
consultant |
When to submit your application?
March 08, 2024 - 10:46
Answer by Sara Gavidia
consultant |
Participating agencies regularly post SBIR/STTR funding opportunities, with some having multiple solicitations and others releasing only one each year.
Calender of applications. Source: https://www.sbir.gov/solicitations
Phase I Schedule:
* Agencies with multiple Phase I solicitations within a Fiscal Year include DOD(3), HHS(4), NSF (4), DOE(3), and DOC(2).

* Phase I Solicitation dates with a MMM-DD-YYYY are actuals; dates with a MMM-YYYY are estimated based upon an agency's past solicitations.
March 08, 2024 - 17:58
Damla Yildirim
consultant |
What phases are there in SBIR/STTR programs?
March 08, 2024 - 10:45
Answer by Sara Gavidia
consultant |
In Phase I, small businesses aim to demonstrate the technical feasibility of their proposed innovation and advance it toward commercialization.
Phase II allows for the continuation of R&D efforts initiated in Phase I and the development of prototypes or processes.
Phase III: the objective is to pursue commercialization. However, the SBIR/STTR programs do not fund Phase III.
Both Phase I and Phase II information can be integrated into one application by Fast-Track applications, which are available to SBIR and STTR. Both phases are submitted and reviewed in one application. By using the Fast Track mechanism, the funding gap between phases can be minimized, but a fully developed Phase II application/plan is necessary at the time of submission.
March 08, 2024 - 17:58
Damla Yildirim
consultant |
How long is the duration of the SBIR/STTR programs?
March 08, 2024 - 10:45
Answer by Sara Gavidia
consultant |
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are both structured in phases. Phase I typically lasts for a period of 6 months for SBIR, and 12 months for STTR. Phase II lasts for a period of 24 months.
March 08, 2024 - 17:58
Damla Yildirim
consultant |
What are the differences between grants and contracts?
March 08, 2024 - 10:45
Answer by Sara Gavidia
consultant |
Grants:
Government uses grants to achieve public purposes, advance national goals, address public issues, or encourage specific activities.
Grants provide considerable latitude to the Principal Investigator (PI) in defining the scope of work and adapting the project and its outcomes.
Grants are flexible and typically awarded to entrepreneurial research projects.
Four organizations in SBIR and STTR programs only provide grants: Department of Energy, National Oceanic and Atmospheric Administration, National Science Foundation, and Department of Agriculture.

Contracts:
Government directly procures a good or service beneficial to the government.
Contracts are binding agreements between a buyer and seller to provide goods or services in return for compensation.
Major contract-awarding organizations include the Department of Defense, NASA, Department of Homeland Security, Department of Transportation, and Environmental Protection Agency.
Contracts are more stringent and often come with reporting requirements.
March 08, 2024 - 17:59
Damla Yildirim
consultant |
What are the participating agencies?
March 08, 2024 - 10:45
Answer by Sara Gavidia
consultant |
The eleven organizations participating in the SBIR and STTR programs make their awards in the form of either a grant or a contract. The following are the participating agencies:
Department of Agriculture (USDA)
Department of Commerce (DOC) NIST, NOAA
Department of Defense (DoD)
Department of Education (ED)
Department of Energy (DOE)
Health and Human Services (HHS) NIH, FDA, CDC, ACL
Department of Homeland Security (DHS)
National Aeronautics and Space Administration (NASA)
Department of Transportation (DOT)
Environmental Protection Agency (EPA)
National Science Foundation (NSF)
March 08, 2024 - 18:02
Damla Yildirim
consultant |
What is the success rate of the SBIR programme?
March 08, 2024 - 10:44
Answer by Sara Gavidia
consultant |
15% of SBIR proposals were funded in the NIH Phase I program for 2022, 26% succeeded in Phase II, and the overall success rate amounted to 18%. Other agencies will have different success rates. You will, however, always receive valuable feedback on the application, which you may use to improve the resubmission.
For further information and comparison of the different success rates over the years, please visit the NIH Data Book.
March 08, 2024 - 18:08
Damla Yildirim
consultant |
What Technology Readiness Level (TRL) is required?
March 08, 2024 - 10:44
Answer by Sara Gavidia
consultant |
Phase I involves research and development across TRLs 1-3. The typical range for Phase II is over TRLs 4-6. Phase III, the last stage, deals with TRLs 7-9, or the last steps leading up to commercialization. Phase I and II eligibility is conditioned on the prior phase's successful completion.
March 08, 2024 - 18:08
Damla Yildirim
consultant |
How long does it take to receive the funding?
March 08, 2024 - 10:44
Answer by Sara Gavidia
consultant |
The government's disbursement of funds is not quick, and it can take up to a year after the award and Phase I funding depending on the agency.
March 08, 2024 - 18:09
Damla Yildirim
consultant |
Should I write my own application, or should I hire a consultant?
March 08, 2024 - 10:44
Answer by Sara Gavidia
consultant |
This can be a difficult question to answer, and there is a lot to consider. Companies should consider whether they can dedicate the time and talent to writing a lengthy proposal, whether they have the skills required, and whether they can afford a consultancy. They should consider the internal opportunity cost (can they afford to dedicate a team to spend 1-2 months preparing the application). They should also consider reaching out to a consultancy to assess the quality of their project and whether it is likely to be funded (these meetings are usually free of charge).
March 08, 2024 - 18:10
Damla Yildirim
consultant |
What is the application procedure?
March 07, 2024 - 22:54
Answer by Sara Gavidia
consultant |
Find the Opportunity (Solicitation) on SBIR.Gov for which you'd like to apply.
You may also find the Opportunity (Solicitation) on FedBizOpps. Each Agency has their own proposal submission guidelines, so the steps for submitting proposals may differ. Companies should determine their eligibility status before application.

How to register your company:
If your company has not previously worked with the government, you will need to complete multiple registrations before preparing an application and applying for funding. Completing the registration process can take 6 weeks or more. Companies are recommended to start as soon as possible.

SAM (System for Award Management) – required to do business with the U.S. government.
Grants.gov– required to submit grant applications through the federal-wide grant portal.
SBA (Small Business Administration) – required to participate in SBIR and STTR federal funding programs.

How to apply for SBIR/STTR funding:
Access Research.gov.
Prepare and submit a Project Pitch: Potential SBIR/STTR proposers must create an account and submit a written "Project Pitch" through the portal.
Obtain an invitation to submit a full proposal: If the proposed project is determined to be a good fit based on the Project Pitch, the small business will receive an official email invitation to submit a full proposal.
Prepare and submit a full proposal: Full proposals for SBIR/STTR Phase I are submitted at Research.gov. The full proposal should include all required documentation and follow the guidelines outlined in the SBIR/STTR Phase I solicitation.
If your application does not receive funding, you have the option to resubmit it. Resubmission is an unfunded application that has been modified following initial review and resubmitted for consideration. The process is the same as the first submission. You only have one opportunity to resubmit.

Phase II provides funding to continue the research and development you began in Phase I.
Only recent NSF SBIR and STTR Phase I awardees may apply for Phase II funding.
You can only submit one Phase II proposal per Phase I award.
You won't be able to resubmit your Phase II application if it's declined.
March 08, 2024 - 18:13
Damla Yildirim
consultant |
What are the STTR Partnering Nonprofit Research Institution requirements?
March 07, 2024 - 22:53
Answer by Sara Gavidia
consultant |
To be eligible for funding, institutions must fulfill some requirements:
They must be located in the US.
They must meet one of three definitions:
Be a nonprofit college or university
Be a domestic nonprofit research organization
Be a federally funded R&D center (FFRDC)
March 08, 2024 - 18:14
Damla Yildirim
consultant |
What are the STTR Small Business requirements?
March 07, 2024 - 22:53
Answer by Sara Gavidia
consultant |
Small businesses must collaborate with a research institution in Phase I and Phase II for STTR. Collaborating research institutions (Universities) can not submit STTR proposals, those proposals must be submitted by small businesses that are collaborating with universities or research institutions participating on the STTR project.
To be eligible, companies must fulfill the following requirements:
They must be organized for-profit with a place of business located in the United States.
At least 51% owned or in the case of a publicly owned business, at least 51 % of its voting stock is owned by United States citizens or lawfully admitted permanent resident aliens.
They must have 500 or fewer employees.
March 08, 2024 - 17:30
Damla Yildirim
consultant |
What are the SBIR Small Business requirements?
March 07, 2024 - 22:53
Answer by Sara Gavidia
consultant |
Only small businesses independently owned, organized for profit and located in the United States are eligible to participate in the SBIR/STTR programs.
Eligible businesses must be more than 50% directly owned and controlled by (a) one or more individuals who are citizens or permanent resident aliens of the United States, (b) other for-profit small businesses, each of which is more than 50% directly owned and controlled by individuals who are U.S. citizens or permanent resident aliens of the United States, or (c) any combination of these.
Businesses must have 500 or fewer employees.
March 08, 2024 - 17:28

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