Presentation Template

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The Small Business Innovation Research Program
Presented by Ken Dozier, Executive
Director Date April 2000
U S C E N G I N E E R I
N G T E C H N O L O G Y
T R A N S F E R C E N
T E R A N A S A R E G
I O N A L T E C H N O L
O G Y T R A N S F E R
C E N T E R h t t p / / w w w . u s
c . e d u / g o / t t c
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What is SBIR?
SBIR is a federal set-aside program for small
businesses. SBIR funds high-risk, early-stage
technology RD projects that have potential for
commercial success. SBIR funds are not loans!

Presented by Ken Dozier Date April 2000
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Objectives of the SBIR Program

• Stimulate technological innovation
• Use small business to meet federal RD needs
• Increase private sector commercialization
  derived from federal RD
• Encourage the participation by disadvantaged
  and minority persons in technological
  innovation

Presented by Ken Dozier Date April 2000
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Agency SBIR Funding Levels
Total of all agencies is approximately 1.1
Billion! DoD 540 Million (FY00) DHHS 307
Million (FY99) NASA 89.1 Million (FY99) DoE 80
Million (FY00)
NSF 56 Million (FY99) USDA 13.3 Million
(FY99) DoC 7.5 Million (FY99) DoT 7.4 Million
(FY98) EPA 5.6 Million (FY97) DoED 5.3 Million
(FY99)
Presented by Ken Dozier Date April 2000
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Small Business Participants in SBIR

• Eligibility criteria for small businesses to
  participate in SBIR
• U.S. owned and independently operated, with
  principal place of business in the U.S.
• Organized for profit
• Fewer than 500 employees, including all
  affiliates

Presented by Ken Dozier Date April 2000
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The Three Phases of SBIR

• Phase I Feasibility Study
• Funded at 50,000 to 100,000, depending on the
  agency
• Six month effort
• Phase II Prototype Development
  
• Funded at 225,000 to 750,000, depending on
  the agency
• Up to two year effort
• Phase III Commercialization
  
• No SBIR funds available for Phase III
• Small business procures other development
  funds, product orders, intellectual property
  licenses, commercial partners, etc.

Presented by Ken Dozier Date April 2000
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A Very Competitive Program
Approximately 12 of Phase I proposals are
funded, on average, across all agencies. Approxim
ately 40 of Phase II proposals are funded, on
average, across all agencies
Presented by Ken Dozier Date April 2000
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Youre in Good Company in SBIR

• Federal Express Corp.
• Intel Corp.
• Apple Computer, Inc.
• Compaq Computer Corp.
• Chiron Corp.
• In their early days as small start-ups, all of
  these companies received support through the SBIR
  program or from SBA-sponsored Small Business
  Investment Companies.

Presented by Ken Dozier Date April 2000
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Investment Sources for Formative Stage
Companies
Venture Capital

SBIR/STTR
Average of 7.5 million in first round
Family and Friends
350K to 850K per project
Up to 100K
Presented by Ken Dozier Date April 2000
Price Waterhouse Coopers MoneyTree US Report,
Full Year Q4 1999 Results
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Whos Getting the Venture Capital?

• Total invested in 1999 was 35.6 billion
• Internet companies received 19.9 billion in
  1999

Presented by Ken Dozier Date April 2000
Source Price Waterhouse Coopers MoneyTree US
Report, Full Year Q4 1999 Results
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For Further Information . . .

• NASA Far West Regional Technology Transfer
  Center
• http//www.usc.edu/go/TTC/NASA/SBIR/index.html
• 213-743-2353
• 800-642-2872
• nasa_at_usc.edu
• Participating agency SBIR web sites
• eg. NASA
• http//sbir.nasa.gov

Presented by Ken Dozier Date April 2000