Cover Image

HARDBACK
$73.75



View/Hide Left Panel

Under the Fast Track, a small company can offer an investor the opportunity to obtain a match of between one and four dollars in DoD SBIR (or STTR) funds for every dollar the investor puts in.

To qualify for the Fast Track, small companies and their outside investors must follow the procedures detailed in Section 4.5 of the SBIR solicitation. The most important of these procedures are summarized as follows.

First, toward the end of a small company’s Phase I SBIR (or STTR) project, the company and its investor submit a Fast Track application. In the Fast Track application, the company and investor:

  • State that the investor will match both interim and phase II SBIR (or STTR) funding, in cash, contingent on the company’s selection for Phase II award. The matching rates needed to qualify for the Fast Track are as follows:

  • For small companies that have never before received a phase II SBIR or STTR award from DoD or any other federal agency, the matching rate is 25 cents for every SBIR (or STTR) dollar. (For example, if such a company receives interim and Phase II SBIR funding that totals $750,000, it must obtain matching funds from the investor of $187,500.)

  • For all other companies, the matching rate is 1 dollar for every SBIR (or STTR) dollar. (For example, if such a company receives interim and Phase II SBIR funding that totals $750,000, it must obtain matching funds from the investor of $750,000.)

The matching funds may pay for additional R&D on the company’s SBIR (or STTR) project or, alternatively, they may pay for other activities (e.g., marketing) that further the development and/or commercialization of the technology.

  • Certify that the outside funding qualifies as a “Fast Track investment,” and the investor qualifies as an “outside investor,” as defined in DoD Fast Track Guidance. Outside investors may include such entities as another company, a venture capital firm, an individual “angel” investor, a non-SBIR, non-STTR government program; they do not include the owners of the small business, their family members, and/or affiliates of the small business.

Second, DoD will notify each Fast Track company, no later than 10 weeks after the end of Phase I, whether it has been selected for Phase II award. Once notified, the company and investor must certify, within 45 days, that the entire amount of the matching funds from the outside investor has been transferred to the company.



The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement