Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) are two federal programs that were created to encourage small U.S. businesses to participate in research that has the potential to be commercialized. The contracts were awarded through these programs.
On the whole, Darkhive has scored more than $13 million in government contracts, which thus helped prod $4 million in late seed-round financing from financial backers.
Goodson stressed the worth of the SBIR/STTR awards for new businesses. He pointed out that grants for “phase 1” projects, which determine the research’s technical merit, feasibility, and commercial potential, typically range from $50,000 to $250,000.
“I can’t believe you’re so excited about these phase 1 [grants], that’s $75,000, why do you care,” said one of our institutional investors… However, our stage 1 got taken straightforwardly to stage 3 — so that was $75K that got transformed into $5 million, essentially short-term.”
He acknowledged that applying for these smaller grants takes a long time, necessitates careful attention to the smallest details, and necessitates a lot of back-up documentation, such as letters of support from prospective customers and investors.