Todd Strother Ph.D. Center for Technology Commercialization UW-Extension, Division of Business & Entrepreneurship
SBIR Workshop Myths and Misconceptions of SBIR/STTR October 3rd, 2018 1:00 PM - 4 :00 PM Madison, WI MG&E Innovation Center, 510 Charmany Drive http://bit.ly/SBIRMyths 608-219-4183 Sponsors todd.strother@uwex.edu
Outline • Govt. funding for Innovative Companies – Federal SBIR/STTRs – Examples of funded companies – Eligibility and the story – Wisconsin successes – Center for Technology Commercialization • Our programing • Our grant funds available 608-219-4183 Sponsors todd.strother@uwex.edu
Outline and Objectives Identify potential SBIR type companies • Learn criteria used to evaluate a fit for the • SBIR/STTR program Summarize Wisconsin’s success with funding • Relate how the CTC assists companies • 608-219-4183 Sponsors todd.strother@uwex.edu
SBIR/STTR Program • Small Business Innovation Research Grants – Funds Small Business Research – For development of new products • Grant goes to the Company • ~3.5% of Federal Research $ is set aside to fund Small Company Research • ~$2.5 Billion per year. 608-219-4183 Sponsors todd.strother@uwex.edu
Purpose/Background of SBIR / STTR • Small Business Administration (SBA) – directs 11 other federal agencies Encourages: • Small businesses to undertake R&D projects – Are technically High Risk, High Payoff – Have high potential for commercialization – Disruptive, not iterative 608-219-4183 Sponsors todd.strother@uwex.edu
Participating Agencies • Department of Defense • Department of Health and Human Services – (NIH, CDC, FDA and ACF) STTR • Department of Energy • NASA • National Science Foundation • Department of Agriculture • Department of Commerce • Department of Homeland Security • Environmental Protection Agency • Department of Transportation • Department of Education 608-219-4183 Sponsors todd.strother@uwex.edu
SBIR/STTR Roadmap Technology Readiness Phase I Phase II Phase III Feasibility Prototype Commercial- ization ~$150K ~$1M • Phase I Final Report • Technical Proposal • Commercialization Plan • Project Team • Sales • Technical Proposal • Environment • Investment Capital • Project Team • Budget • Licensing • Environment • Product Rollout Plans • Budget 608-219-4183 Sponsors todd.strother@uwex.edu
Technologies Suitable for SBIR/STTRs Advanced Materials and Instrumentation NSF Radom Corporation 608-219-4183 Sponsors todd.strother@uwex.edu
Technologies Suitable for SBIR/STTRs Toxic Chemical Detection DOD Platypus Technologies 608-219-4183 Sponsors todd.strother@uwex.edu
Technologies Suitable for SBIR/STTRs Pharmaceuticals and Medical Treatments NIH Stratatech 608-219-4183 Sponsors todd.strother@uwex.edu
Technologies Suitable for SBIR/STTRs Walleye Hybrids USDA Northside Industries 608-219-4183 Sponsors todd.strother@uwex.edu
Generally NOT Suitable for SBIR/STTRs • Established markets/consumer goods – Restaurants, Dry cleaners, Auto repair • Engineering (where research is complete) – Feasibility and prototypes are built; just need money to commercialize – Web apps • unless Innovative Research in a SBIR topic is required • Purchase of large equipment/facilities – Need to purchase machinery to scale up manufacture • Low significance – Current technology mostly solves the problem 608-219-4183 Sponsors todd.strother@uwex.edu
SBIRs vs Investors Similar • Successful commercialization is the end goal • Have to pitch your idea and company • Convince someone your idea is fundable 608-219-4183 Sponsors todd.strother@uwex.edu
SBIRs vs Investors Different • Govt. does not take equity in the company • Focus on tech vs. team • Govt does not control direction of company 608-219-4183 Sponsors todd.strother@uwex.edu
Outline and Objectives Identify potential SBIR type companies • Learn criteria used to evaluate a fit for the • SBIR/STTR program Summarize Wisconsin’s success with funding • Relate how the CTC assists companies • 608-219-4183 Sponsors todd.strother@uwex.edu
Funding Road Map 608-219-4183 Sponsors todd.strother@uwex.edu
Go/No go Criteria • T – Topic : • E – Eligibility : • S – Story : • T – Team : 608-219-4183 Sponsors todd.strother@uwex.edu
SBIR/STTR Topic/Technology Fit Develop SBIR/STTR topic search strategy • Is it an SBIR or an STTR topic? • Which agencies? • What are their topics of interest? • What are their deadlines? • What are their requirements? 608-219-4183 Sponsors todd.strother@uwex.edu
Highlights of Eligibility • For-profit company located in US • Company >50% owned/controlled by: – US citizens, permanent resident aliens or domestic business concerns, OR – Multiple domestic VCs, hedge funds or private equity firms • <500 employees (including affiliates) 608-219-4183 Sponsors todd.strother@uwex.edu
What is Your SBIR/STTR “Story“? • A significant need/problem • Innovative solution • 2-3 research questions to answer • high impact commercial product? 608-219-4183 Sponsors todd.strother@uwex.edu
Winning Team Principal Investigator Directs the project • Qualifications - are they well trained in the topic? • Can they run a project • (Usually) An employee of the small business • Technical Team Skilled technicians • Collaborators/consultants • Strategic Advisors and Partners CTC staff • Consultants • 608-219-4183 Sponsors todd.strother@uwex.edu
Selection and Evaluation Criteria Peer Reviewed Process Proposals are evaluated on three items: A. soundness, technical merit, and innovation B. qualifications of the team C. potential for commercial success 608-219-4183 Sponsors todd.strother@uwex.edu
Outline and Objectives Identify potential SBIR type companies • Learn criteria used to evaluate a fit for the • SBIR/STTR program Summarize Wisconsin’s success with funding • Relate how the CTC assists companies • 608-219-4183 Sponsors todd.strother@uwex.edu
Successes and Influence Since 2005 Client Distribution by County • $200M in investments • $85M in SBIR/STTR funding • 51% of clients win SBIR awards • National average is 15-18% 39% Gov Business plan competition 39% • 2 of the 4 winners in 2016 Other Dane • 7 of the 13 finalists in 2017 (2 of the 4 winners) • 8 of the 12 finalists in 2018 (3 of the 4 winners) 22% Milwaukee area Early Stage Symposium • 9 of 28 Pitched in the Tech Council Investors’ Network • 3 of 21 in Elevator Pitch Olympics 608-219-4183 Sponsors todd.strother@uwex.edu
Successes and Influence SBIR Award Success for Wisconsin • Pretty much right in the middle 25 th Wisconsin SBIR Awards and Companies 70 60 50 40 30 Grant success history 20 10 • Companies funded are flat 0 2012 2013 2014 2015 2016 2017 • Grants awarded have dropped Awards Companies • Two companies accounted for multiple grants (Lucigen and Orbitech) • Successful exits make them ineligible 608-219-4183 Sponsors todd.strother@uwex.edu
Successes and Influence USDA SBIR success for Wisconsin USDA SBIR 2012-2018 Overall we are 5 th in the country • 120 103 BUT 2012-15 we were 4 th • 100 Over the last two years, we’ve slipped to 9 th • 80 60 32 30 29 40 25 20 0 CA MA NY CO WI WHY? Previous companies are no longer applying for USDA grants • Whole Trees • Lucigen • They are successful without grants now • 10 companies awarded down to 5 • 608-219-4183 Sponsors todd.strother@uwex.edu
Successes and Influence Conclusions: • We are pretty good a helping our clients get funding • Our clients appear to be twice as successful • But, the pipeline of applicant companies has stalled • And in some areas gone down • Here’s the plea: Help us find, identify, and assist companies 608-219-4183 Sponsors todd.strother@uwex.edu
Examples of USDA Awardees Freund’s Farm (Connecticut) • Solution to dairy farm manure • Cleaned and pressed into flower pots • Biodegradable • Provides fertilizer for young plants • ~$350,000 in SBIR funds • Featured on “Dirty Jobs” 608-219-4183 Sponsors todd.strother@uwex.edu
Examples of USDA Awardees Eldertide (Maine) • Cultivated Elderberries • High in Antioxidants • Developed Juice drink • AnthoImmune ™ Organic Elderberry Syrup • ~$480,000 in SBIR funds • Available at Whole Foods 608-219-4183 Sponsors todd.strother@uwex.edu
Examples of USDA Awardees Wisconsin Companies • Whole Trees • Phyllotech • Northside Industries Actively looking for others (other agencies too….NSF, NIH, DoD, DOE, etc.) 608-219-4183 Sponsors todd.strother@uwex.edu
Outline and Objectives Identify potential SBIR type companies • Learn criteria used to evaluate a fit for the • SBIR/STTR program Summarize Wisconsin’s success with funding • Relate how the CTC assists companies • 608-219-4183 Sponsors todd.strother@uwex.edu
The CTC From Feasibility to Funding The Center for Technology Commercialization Part of the UW-System • Services are no-cost to WI companies • Assist in preparing SBIR/STTR proposals • Business and Commercialization plans • Lean Startup methodologies • 608-219-4183 Sponsors todd.strother@uwex.edu
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