In the past four years, Axion BioSystems has successfully won four government grants totaling $3.1 million and raised approximately the same amount through investors – funds that have allowed the company to develop cutting-edge, proprietary neural interfacing technologies.
Those achievements have not gone unnoticed. The ATDC Select member has been named one of the winners of the 2012 Tibbetts Award, given out by the U.S. Small Business Administration to honor outstanding companies who have participated in the Small Business Innovation Research (SBIR) program and shown significant success in driving innovation and creating new jobs.
“Our team has been successful in applying for and being awarded grants that are aligned with our product development strategy,” said Tom O’Brien, Axion’s President and Chief Executive Officer. “The ‘Tibbie’ awards are given to companies that take federal funds and actually create something with it, and we’ve created a valuable device that meets a growing need in the life science instrumentation market. We’ve done what we said we were going to do, so this is a wonderful way to be honored for those efforts.”
Founded in 2008 by O’Brien and Dr. James Ross, Axion BioSystems specializes in neural interfacing technologies that can be widely applied to the research, clinical and drug discovery markets. The startup came about when Ross, then a graduate student at Georgia Tech, applied for and received an SBIR grant from the National Institutes of Health that helped pave the way for the company’s product development.
Axion’s proprietary technology measures brain waves and heart beats using high throughput culture plates – an industry first. While current development is focused on pharmaceutical drug screening, ongoing research and product development will result in devices for the medical industry, said O’Brien.
With more than 20 full- and part-time employees now on the roster, Axion leaders are looking to the future – one they hope will bring continued growth and product commercialization. The startup is already on the way to meeting one significant growth milestone: Axion is one of eight member companies graduating from ATDC next month. O’Brien said the accelerator has provided Axion with invaluable resources over the years, including the use of lab space, networking and mentorship.
Each year, the National Institutes of Health (NIH) invests more than $700 million into small businesses performing biomedical and biohavioral R&D to advance products to the commercial marketplace. On May 30 – June 1, at the Louisville Marriott Downtown, hundreds of health and science managers, small business executives, university researchers and entrepreneurs will gather for the 14th Annual NIH SBIR/STTR Conference in Louisville, KY. This year’s conference, “Changing the Face of SBIR/STTR,” will cover the “ins and outs” of the NIH SBIR/STTR programs provided by NIH staff, and include opportunities to meet one-one with NIH Program Managers. Attendees will also be informed of any program changes due to the 2012 Reauthorization Act, including policy updates and modifications to the gap funding and commercialization assistance programs.
A public scientific poster session will be held during the conference, featuring approximately 80 abstracts selected by the NIH to represent both SBIR and STTR Phase II awards. These poster sessions highlight the successes of SBIR/STTR funding and provide an opportunity to build strategic alliances and foster conversations that could lead to future partnerships. Abstract submissions are being accepted until April 20 for these poster sessions.
Registration is now open for the annual conference and costs $350 to attend. After April 30th, the price increases to $450. For an additional fee, participants are invited to stay on for a unique third day opportunity to hear from NSF and DoD staff, speaking on their respective SBIR/STTR programs and to participate in an optional intensive workshop focused on Phase I or Phase II proposal development or the valuation of intellectual property.
Do not miss the opportunity to learn the value of SBIR/STTR funding for your R&D operation. Register now.
Now that SBIR Reauthorization has been passed and signed by the President, many are waiting to see how these new rules will be implemented by each agency. Currently, the rules are in legislative form only, and have not been interpreted by any agency. Many small businesses are specifically interested in the VC eligibility rule, but as it stands, the agencies are only accepting applications from small businesses that comply with the original regulations. Several of the agencies have open solicitations to which you can apply. For more information, please see the links below.
- The Department of Health and Human Services has released it’s 2012 solicitation. Standard submission dates apply: Apr 5, Aug 5, Dec 5.
- The Department of Education has two solicitations available with receipt dates of Feb 13 and Feb 22.
- The Department of Defense has pre-released it’s 2012.A STTR topics. If you are interested in discussing the specific topics with a Program Officer, you must do so prior to the solicitation official release. The final solicitation will be released on Feb 27 and applications are due Mar 28.
- National Institute of Standards and Technology solicitation is available and submissions are due Mar 2.
The process of reauthorizing the SBIR/STTR Program has been, like many other government programs, a long journey. It appears that the House has agreed to the Senate’s modifications for SBIR/STTR reauthorization as part of the National Defense Authorization Act for 2012 NDAA. As reported by Rick Shindell of the SBIR Gateway almost 1000 small businesses contacted their Representatives and urged them to agree to the Senate modifications for SBIR/STTR. As the final bill has not yet been authorized we do not have all the details. Here is what is known:
- Reauthorization through 2017.
- Increased Set Aside: SBIR from 2.5% to 3.2%, STTR from 0.3% to 0.45%.
- VC Majority Ownership: Allowable for 25% of awards from NIH, DoE and NSF, 15% of awards from all other agencies.
- Limit on Number of Awards Per Company: Rejected, but language included to monitor a company’s success.
- Agency Administrative Fund: 3% of SBIR funds can be used by the agencies for outreach and administration.
- Phase I Skip: Allowable for NIH, DoD and DoEd, at the agencies discretion.
The Department of Energy (DOE) has announced a new SBIR solicitation, with applications due in mid-September. Until the Funding Opportunity Announcement is officially posted in early August, potential applicants may contact the Technical Topics Managers to discuss the topics.
In an effort to improve commercialization outcomes of the funded projects, the DOE has made several changes to the SBIR/STTR program, which includes adjusting the solicitation release policy, commercialization emphasis and award dollars. Effective with this solicitation, the DOE will now release two solicitations each year. The first will contain topics from the Office of Science, and the second will feature topics from the remaining DOE program offices. Topics will be posted in advance of the issuance of the full solicitation and letters of intent will be required in advance of full proposals, so applicants must plan ahead.
The DOE is also increasing the emphasis on commercialization plans in both Phase I and Phase II. Phase I proposals lacking commercialization plans will be declined without technical proposal review. Phase II commercialization applications will be rated independently of technical merit, and those that receive poor scores on their commercialization plans will not be funded, even if they receive high technical scores. And finally, STTR award amounts will increase to $150,000 for Phase I and to $1 million for Phase II, consistent with maximum SBIR awards. These changes are all detailed in a letter from Manny Oliver, Director of the SBIR/STTR Programs Office within the Department of Energy.
July 29 webinar to discuss changes
The Center for Innovative Technology’s Federal Funding Assistance Program is hosting a July 29th seminar on these changes from 1 to 2:30 p.m. EDT. The featured speaker is Carl Hebron, the DOE’s SBIR/STTR Program Coordinator. The webinar is free, but attendance is limited. You can sign up here.
For more information, review our online resources or join us at an SBIR Circle, held every Thursday at 10:30 a.m. in ATDC room 207 at Technology Square, 75 Fifth St NW.
The Therapeutic Discovery Project Credit has been the talk of the bioscience community since the legislative text was released on May 21st. The program will infuse the industry with both tax credits and cash grants for qualified investments in therapeutic R&D. The hope is to stimulate continued growth and progress for therapeutic discovery, including diagnostics and delivery vehicles.
Over the past month there has been much debate over the potential rules and regulations. One such topic of discussion revolved around the inclusion of Federal Grants, such as SBIR/STTRs, as a qualified investment. How can you claim a Federal Grant as a qualified investment? To many that seems as double dipping. According to the IRS, not if you claim that Federal Grant as gross income.
The IRS form, NIH form and final instructions, including FAQ’s from the IRS, were released on June 18th. This question is specifically answered by the IRS.
Q. Can a company apply for the new credit or grant for a project for which the company is already receiving other grant money (e.g., an SBIR award), or does the project have to be completely self-funded to qualify?
A. A taxpayer must reduce the amount of a project’s qualified investment for any grant that is not included in gross income, unless the grant can only be used for costs not included in the definition of a qualified investment. See Notice 2010-45 § 4.01(4).
This could significantly increase the amount of award to many small companies that are funded both privately and through SBIR/STTR grant awards.
The Department of Homeland Security (DHS), Office of Procurement Operations (OPO), Domestic Nuclear Detection Office Acquisition Division (DNDOAD) is seeking proposals for the Small Business Innovation Research (SBIR), Program, Phase I.
There are two VERY SPECIFIC technical topics for this proposal:
1. Radiation Detection Modules for the Geospatial Location Accountability and Navigation System for Emergency Responders (GLANSER) system.
2. Neutron detectors including replacement for He-3
While there are only 2 topics for this solicitation, if your company can carry out this research and develop the product DHS needs, a Phase I proposal is up to $150,000 for up to 6 months of research.
Proposals are due May 11th. See solicitation for details.
The National Science Foundation released its first 2011 SBIR Solicitation for the year. Anticipated funding amount for this solicitation is $45,000,000 (approximately 300 Awards). Maximum funding amount for these Phase I awards is $150,000 for the 6-month feasibility study.
There are four Main Topics with multiple subtopics under each:
Proposals will be due by June 9th.
The Department of Education’s National Institute on Disability and Rehabilitation Research (NIDRR) currently has an open SBIR solicitation. Maximum funding for one of these 6-month Phase I research projects is $75,000. If scientific or technical merit and feasibility is demonstrated during Phase I, awardees have the potential to receive $500,000 for their Phase II research which will cover a research period of up to 24 months. Application proposals are due March 15th.
Priority topic areas for research are:
(1) Increased independence of individuals with disabilities in the workplace, recreational settings, or educational settings through the development of technology to support access and promote integration of individuals with disabilities
(2) Enhanced sensory or motor function of individuals with disabilities through the development of technology to support improved functional capacity.
(3) Enhanced workforce participation through the development of technology to support access to employment, promote sustained employment, and promote employment advancement for individuals with disabilities.
(4) Enhanced community participation and living for individuals with disabilities through the development of accessible information technology including Web access technology, software, and other systems and devices that promote access to information in educational, employment, and community settings, and voting technology that improves access for individuals with disabilities.
(5) Improved interventions and increased use of health-care resources through the development of technology to support independent access to health-care services in the community for individuals with disabilities.
Please see the solicitation for more details.
SBIR stands for Small Business Innovation Research, so the “S”= “Small”, but what really is “small”? The SBA (Small Business Administration) defines a company as “small” if they have less than 500 employees, so technically, a company is qualified for SBIR if they have at least one employee or as many as 499 employees. Does that mean that companies of both sizes would be equally qualified? No. As with many facets of SBIR, it depends on the sponsoring agency and their needs/requirements.
All agencies are looking for successful SBIR companies. If you can demonstrate that you are realistically capable of doing all the work necessary to complete your Phase I work, then you stand a good chance. “Realistically capable”, means you have the education, experience, facilities, equipment, and time to complete the work. If your company does not have all these appropriate elements, then you need to find partners, subcontractors, or hire additional full-time/part-time employees to complete the work. Remember though, with SBIR, you may only subcontract up to 33% of the work.
Looking at first-time SBIR award recipients across all agencies, 70% of the companies have less than 25 employees with 41% having between 2-9 employees. In other words, small companies DO receive government awards! Agencies individually, though, vary, so know your agency and what it expects. Agencies, which tend to have more broad or researcher-initiated topics, tend to be more willing to fund the smaller start-up companies (as long as you can demonstrate you can successfully do the proposed work), rather than the agencies that utilize SBIR in their procurement process; these agencies not only evaluate the initial research, but evaluate how well the company will then develop, produce, and deliver the end-product.
If you are a company with less than 25 employees, don’t dismiss SBIR because you think you are too small—small companies are driving innovation in the marketplace. If you are a company with say 400 employees, don’t dismiss SBIR because you think it is only for startups—in this tight economy, you might be able to create a new product line which can sustain your company.
Bottom line: when small, think BIG with SBIR!