America’s Seed Fund is coordinated by the Small Business Administration and funded through 11 participating federal agencies that fund innovations.
America’s Seed Fund has two programs: Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR). Both programs award non-dilutive funding to qualified recipients to develop their technology and chart a path toward commercialization. Note that each agency’s SBIR/STTR program differs in agency budget amount, phase I funding amount, phase II funding amount, and grants or contracts.
America’s Seed Fund seeks start-ups who are developing businesses based on innovative technologies, and are in need of research and development funding. Awardees can also use the funds to identify and protect valuable intellectual property assets.
The SBIR program provides research and development funds to small businesses with fewer than 500 employees. The STTR programs also provides research and development funds, with the difference that the small business must formally partner with a U.S. research institution, such as a university.
Eligible innovations must have the potential to positively benefit society and to lead to significant outcomes in the commercial market. Most of the startups funded have fewer than five employees and have not previously received funding from the government.
Participating federal agencies. The federal agencies who participate in the SBIR/STTR programs each has a specific technology focus that will be discussed in a later article. They are as follows:
- Small Business Administration
- Department of Agriculture
- Department of Commerce
- Department of Defense
- Department of Education
- Department of Energy
- Department of Health and Human Resources
- Department of Homeland Security
- Department of Transportation
- Environmental Protection Agency
- National Aeromautics and Space Administration
- National Science Foundation
Eligibility. To be eligible for SBIR or STTR funding, the applicant must meet the following requirements:
- be for-profit
- 50% or more of the firm’s equity must be owned either by one or more individuals who are citizens or permanent residents of the United States. The alternative is to be a small business for profit entity that meets the foregoing criteria. The awardee can also be owned by a venture capital fund, provided its meets certain qualifying exceptions
- has fewer than 500 employees (most awardees have less than 10 employees
How it works. The funding eligibility and qualifying process is set forth below:
- Participating federal agencies post solicitations
- Applicants submit a proposal (if eligible) and apply through the agency’s SBIR or STTR program before the deadline
- Participating agencies review the proposal, with the agency providing rigorous feedback to help the applicant refine the concept
- Agencies award funding
To discuss America’s Seed Fund, or additional technology funding opportunities that may be available to companies seeking to go to market in the United States, please contact a Fedtrade U.S. market entry advisor.