What is SBIR and STTR?
These two acronyms show up often in entrepreneurial conversations. Let’s break it down. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) are both programs of the U.S. Small Business Administration (SBA)’s initiative, America’s Seed Fund. While both are non-dilutive, there are a few differences between them that determine which program is a good fit for you.
STTR
Small business is the applicant
Partnered with a non-profit research institution (RI)
PI can be employed by either the RI or the small business
Using technology from the RI’s portfolio (tech transfer)
Up to 60% of the research can be sub-contracted
5 agencies participate
IP agreement is established
SBIR
Project’s principal investigator (PI) is primarily employed by the small business
Research institution partner not required
Up to 33% of the research can be sub-contracted in Phase 1, 50% in Phase 2
11 agencies participate
More investor-friendly
Better for PIs who want to be consultants, independent of their institution