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