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HomeUncategorizedConsider the Differences Between SBIR/STTR and Venture Funding

Consider the Differences Between SBIR/STTR and Venture Funding

September 6th, 2013 | by Michael Kurek

chasing moneyEntrepreneurs often tell us they avoid going after SBIR funding because it’s “too slow” and doesn’t meet the “need-for-speed” in their fast-moving market. Interestingly, a 2008 study from Harvard Business School reports that serial entrepreneurs (that is, those that have previously raised VC funding successfully) require an average of 21 months to fund a subsequent company.

On the other hand, first-time entrepreneurs take 37 months! Thirty-seven months is approximately the average duration of a complete Phase I and Phase II SBIR R&D project. If that isn’t compelling enough, remember that SBIR/STTR is non-dilutive capital. No equity. No interest. In other words… free.

If you haven’t already done so, it may be time to reconsider SBIR/STTR as part of your funding strategy. Here’s a little comparison of SBIR vs. VC factors:

VC vs SBIR chart2

Any questions?

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Michael Kurek, PhD, is a Partner with BBC Entrepreneurial Training & Consulting

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