Science and tech entrepreneurs share a common challenge: accessing capital for essential research and development. That’s where TEDCO, Maryland’s economic engine for technology companies, comes in. TEDCO is here to help Maryland tech companies grow; that includes helping them apply for the $4 billion federal SBIR/STTR award programs.
Entrepreneurs from across Maryland have benefited from TEDCO’s hands-on Small Business Innovation Research (SBIR)/ Small Business Technology Transfer (STTR) Proposal Lab, which is accepting applications for 2023. In the lab, TEDCO experts work closely with startups on the applications for “America’s seed fund,” which is powered by the Small Business Administration and offers grants of up to $275,000 to qualifying businesses.
To date, 97 companies from across Maryland have participated in TEDCO’s Proposal Lab, leading to $3.8 million in federal R&D funding for the selected companies. One of those awardees is Baltimore-based Astek Diagnostics.
“The support and mentoring we received as members of a SBIR/STTR Proposal Lab cohort paid off when Astek Diagnostics was awarded an SBIR grant of $256,000,” said Mustafa Al-Adhami, chief executive officer of Astek Diagnostics. “We are grateful to TEDCO for the substantial role they played in our success.”
TEDCO’s fifth proposal lab is accepting applications; the program begins in January 2023.
The $4 Billion SBIR/STTR Award Programs
The SBIR and STTR programs are the largest source of early-stage, nondilutive research and funding for small businesses in the U.S.
To qualify, applicants must be for-profit, U.S. owned/operated and employ less than 500 people. According to the SBA, $4 billion is awarded annually, with an average of 4,000 grants given each year to an array of businesses for their R&D work. A powerful draw for many entrepreneurs is that no equity or IP ownership is taken by the government as part of this program.
“TEDCO’s vision is to be a recognized national leader for supporting translational research and technology-based economic and entrepreneurial development. Our SBIR/STTR Proposal Lab goes hand-in-hand with that vision, and we encourage Maryland tech startups to apply,” said Troy LeMaile-Stovall, TEDCO CEO. “The proposal lab helps participants prepare the best possible application, knowing each award benefits the entrepreneur, our state’s innovation ecosystem and a thriving economy.”
TEDCO’s SBIR/STTR Proposal Lab enhances the likelihood of success
While the SBIR/STTR award programs offer the largest source of early-stage, nondilutive R&D funding for small businesses, they are highly competitive. Only about 15% of applicants qualify for the phase one award.
That’s where TEDCO comes in. The SBIR/STTR Proposal Lab supports entrepreneurs applying for SBIR/STTR award programs, increasing the chances of qualifying for an award. SBIR/STTR Proposal Lab has more than doubled the national average first-time Phase I award win rate, reaching 35% for Maryland companies. Over the past four years, winning proposal lab participants have received a total of $3.8 million for their R&D work.
The next proposal lab runs Jan. 11, 2023 through June 30, 2023. Facilitated by experts from the 11 SBIR/STTR agencies, topics include business models, compliance/speed writing, planning/commercialization, TEDCO market search, budgets, graphics, editing and submission prep. Each participant’s proposal receives at least six expert reviews. Nearly 80% of post-proposal lab survey respondents say they have high to senior-level experience after completing the program.
TEDCO’s SBIR/STTR Proposal Lab participants reflect Maryland’s diversity
As part of the SBIR/STTR Proposal Lab process, TEDCO focuses on working with a cohort reflective of the state’s diverse startup community.
“TEDCO’s mission is centered around fostering an inclusive and entrepreneurial innovation ecosystem here in Maryland,” said LeMaile-Stovall. “For us, that means ensuring Maryland’s women-owned and small, disadvantaged businesses are represented in our cohorts. We know that access to funding is essential to Maryland’s talented innovators, and we constantly seek ways to support those who are underrepresented in the tech startup space.”
Across the four cohorts that have participated in the SBIR/STTR Proposal Lab to date, TEDCO has supported a diverse array of 97 companies – 45% woman-owned, 53% small disadvantaged and 26% rural.
The proposal lab has had a positive impact on these participants. According to the National Women’s Business Council, between 2013 and 2018, women-owned, small disadvantaged businesses accounted for 13.3% of SBIR and 12.9% of STTR phase one awardees – less than the overall average. In contrast, the WOSB participants in TEDCO’s SBIR/STTR Proposal Lab have been awarded at a 58% first-time award win rate.
Elizabeth Clayborne, an ER doctor, innovator and founder of NasaClip, attests to the effectiveness of the program.
“My participation in TEDCO’s SBIR/STTR Proposal Lab helped my company, NasaClip, be selected for a $256,000 SBIR grant from the National Science Foundation,” said Clayborne. “Maryland’s science and tech entrepreneurs benefit greatly from TEDCO, including those of us who are underrepresented in the startup community. TEDCO embraces diversity, equity and inclusion, making it a priority to engage and invest in underrepresented founders and communities. That includes their efforts to recruit founders like me to participate in the SBIR/STTR Proposal Lab.”
Applications now open for the 2023 SBIR/STTR Proposal Lab
TEDCO is accepting applications for its fifth cohort of lab participants. The application period closes on Dec. 31, 2022, or sooner if all the seats are filled. Companies are admitted on a first-come, first-serve basis if they qualify during the competitive process.
TEDCO will help Maryland small businesses develop and submit a proposal to the National Science Foundation for a phase one award up to $275,000.
TEDCO accepts startups across nearly all technology areas and markets like artificial intelligence, energy, medical devices, robotics, semiconductors and many more. Once the cohort is chosen, TEDCO works with the selected Maryland tech and bio startups on the critical business skill of writing compelling, compliant and competitive SBIR/STTR proposals.
To learn more about TEDCO’s SBIR/STTR Proposal Lab, visit tedcomd.com/sbirproposal.
TEDCO, the Maryland Technology Development Corp., enhances economic empowerment growth through the fostering of an inclusive entrepreneurial innovation ecosystem. TEDCO identifies, invests in and helps grow technology and life science-based companies in Maryland. Learn more at tedcomd.com.