VC-backed startups now free to chase SBIR grant money

The team at Discovery Machine, Inc. is happy and relieved that the SBIR program has been given legislative life and has moved beyond the seemingly endless struggles of all those caught in the continuing resolution purgatory. We thank everyone who worked so hard for so long to keep this economic engine running.

We see a few dark clouds in this new environment, finding larger companies more active in the submission’s competition and companies that are VC funded and owned now back in the mix. This has clearly taken some early tolls on the success rates for many a small firm.

A recent article by Greg Avery of the Denver Business Journal had what I view as a very nice summary of the VC related changes and is quoted, below. Discovery Machine wishes the best of fortunes to all companies who participate in the new SBIR program.

“VC-backed startups now free to chase SBIR grant money”

Denver Business Journal by Greg Avery, Reporter

Date: Friday, January 13, 2012, 4:00am MST

“For the first time in 10 years, startup companies majority-owned by venture capital funds are eligible again for hundreds of millions of dollars in research grants available to small businesses each year.

Legislation, buried in a national defense spending bill adopted on Dec. 30, allows federal agencies to award a portion of their Small Business Innovation Research (SBIR) grants to VC-backed startups.

It’s a reversal of a 10-year-old policy that excluded firms that were more than 50 percent owned by VC investors…….”

Advertisement