One of the opportunities many start-ups can miss is that of leveraging government interest in a particular technology that is still more R than D. Many of these interests are satisfied with non-dilutive constructs, always of interest to investors and founders. More importantly, they can help bring together real users with real challenges that help focus early targeted development efforts likely to result in satisfying solution resolution for all involved.
While there are a variety of ways this can be done, real expertise and focus is required to ensure the start-up team doesn’t founder on the rocks of qualifications, “soft” requirements, and government speed-of-business.
A few that we at Sinewave can help sort through:
- National Science Foundation (NSF) Grants: An NSF grant provides crucial financial support for scientific research and education, enabling groundbreaking discoveries and fostering scientific progress. Grants range from $50,000 to several million dollars per year based on complexity, scope, and where the technology is in the innovation cycle. NSF represents needs across the Federal Government and brokers direct relationship with the requester. NSF also helps grow the technical application base through phases, assuming successful completion of the previous phase. Mary Reding, one of our Sinewave partners, is an expert in the NSF processes and regularly consults with our portfolio companies on these.
- Partnership Intermediary Agreements (PIAs): PIAs support the work of organizations that act as intermediaries between the Federal Government and the private sector to facilitate technology transfer and commercialization. These intermediaries are a state or local government or a non-profit entity chartered by a state or local government. It can include state-sponsored entities, such as state colleges. Once established, the PIA can then act as a broker for users and suppliers. They are currently one of the most effective and efficient vehicles for accessing government lab technology and techologists, with good flow from the labs to commercial application.
- Cooperative Research and Development Agreements (CRADAs): CRADAs facilitate collaborative research and development between federal laboratories (like those run by agencies like the Department of Energy or the Department of Defense) and non-federal entities (universities, companies). Consideration is not only monetary, but may include “in kind” contributions of equipment, people, and/or IP. Most Federal Entities have the ability to enter in to CRADAs and maintain their own needs within their structure.
- Broad Agency Announcements (BAAs): BAAs solicit proposals from a wide range of sources for research and development projects against some scoped set of user needs. Basically, a BAA does the “heavy lift” of contracting up front, qualifying a set of potential suppliers to transact in the needs area(s) specified. The qualified suppliers then compete for each Task Order based on their interest and demonstrated performance in an abbreviated evaluation and award cycle, since basic qualifications have already been satisfied.
Beyond NSF, the -ARPA-s represent aggregated needs for their respective communities. A few include DARPA, IARPA, ARPA-E, and ARPA-H. A number of Federal Foundations also foster early R&D partnerships such as FNIH, FFAR, and FESI. These entities may be the best entre point for checking to see if the Feds have a need that matches your (envisioned) capability.
In addition to these, there are Federal entities that support start-ups using more standard investment methodologies (e.g. dilutive). Such entities as DIU, InQTel, and OSC serve this function.
SineWave has the breadth of experience to help guide engagement with Federal marketplaces that propel dual use early in each of our portfolio company’s lifecycle, tailored to the team, their capabilities, and their target markets.
