Financing Your Company Through the NIH
SBIR/STTR GRANTS
The NIH can provide startups with nondilutive funding through the Small Busines Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. SBIR and STTR at NIH
In 2005 NIH's combined SBIR and STTR grants totaled $640 million. Agencies with R&D budgets of $100 million or more are required to set aside 2.5 percent of their R&D budgets to sponser research at small companies. Phase I grant support, also known as feasibility study, is normally funded at $100,000 for 6 months (SBIR) or $100,000 for 12 months (STTR). Phase II support is avilable to Phase I recipients and provides tow year awards of $750,000 (SBIR) or $500,000 (STTR).
The success rate for well written SBIR grants is between 25 and 30%. To obtain an SBIR grant, one must convince the NIH that the proposed research is unique, creates value for the general public at learge through advancements in knowledge and tratment of disease and is relevant to the overall goals of NIH. Thus unlike private financing, NIH reviwers determine whether an SBIR grant applicaiton is significantly aligned with the agency's public health mission. However, you should describe a sound and innovative approach to solving an unmet medical need. It is important to contact the program officials within the particular component of NIH from which funding is sought to determine whether your research plan fits these citeria. Applications are evaluated by a peer group of researchers from industry and academia. Thus you should not include propiretary information. The NIH SBIR program provides prospective applicants with a wealth of information, including advice documents ( dd), free workshops and conferences (xxx) and access to program officials (xxx).
CRISP
CRISP or "Computer Retrieval of Information on Scientific Projects" is a searchable database of federally funded biomedical research projects conducted at universities, hospitals and other research institutions. It may be useful to find prospective collaborators or scientific advisors of prequalified NIH funded researchers. This can be useful for a small company with limited scientific depth and also provide insight into funded research plans and strategies that are being contemplated for the upcoming years. It can also be sued to identify potential customers or key contacts.
The database can be queried based on institutions, disease indicaitons, names of primary investigators, type of grants and state.
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