Economic Impact Success Indicators

Since founding in June 2012 to June 2017*

In 2016*


Our Success with SBIR/STTR Grants.

Tech Futures Group (TFG) clients significantly outperformed their California peers in successfully winning Small Business Innovation Research (SBIR) government grants. In this highly competitive grant program, 15% of Phase I California state applications receive funds; 57% of TFG client applications were funded.

*Data from 2016 And, grant size is larger. In 2016, clients earned an average of $15,729 more on Phase I grants and $47,883 more on Phase II grants than their California peers.

*Data from 2016

And, grant size is larger. In 2016, clients earned an average of $15,729 more on Phase I grants and $47,883 more on Phase II grants than their California peers.

*Data from 2016 Last year alone, TFG clients won a total of $10,352,413 in SBIR grants from twelve government agencies — $2,192,742 in Phase I and $8,159,671 in Phase II grants. The twelve government agencies that provide these grants vary in terms of total agency budget and size of grant.

*Data from 2016

Last year alone, TFG clients won a total of $10,352,413 in SBIR grants from twelve government agencies — $2,192,742 in Phase I and $8,159,671 in Phase II grants. The twelve government agencies that provide these grants vary in terms of total agency budget and size of grant.

In last year for Phase I & II, TFG Clients received*:

• $5,503,542 out of $77,305,393 HHS total spending in northern California

• $1,154,573 out of $13,273,789 DOD total spending in northern California

• $759,963 out of $1,812,532 DHS total spending in northern California

• $2,672,267 out of $16,311,991 NSF total spending in northern California

* These numbers were compiled using the SBIR.gov website.

The SBIR grant program is a federal government set-aside program providing over $2.5 billion annually in Federal R&D grants to help small businesses commercialize their technological innovations. The mission of the program is to “support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.”  One of our clients said it best: “Having been the CEO of three different angel / VC backed startups, I can say without hesitation that TFG is one of the single most helpful resources I’ve encountered to accelerate business growth.” — Rich Razgaitis, CEO & Co-Founder, Flo Water  

The SBIR grant program is a federal government set-aside program providing over $2.5 billion annually in Federal R&D grants to help small businesses commercialize their technological innovations. The mission of the program is to “support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.”

 One of our clients said it best:

“Having been the CEO of three different angel / VC backed startups, I can say without hesitation that TFG is one of the single most helpful resources I’ve encountered to accelerate business growth.”

Rich Razgaitis, CEO & Co-Founder, Flo Water

 


SBIR/STTR Grant Awardees Raise Equity:

Small Business Innovation Research (SBIR) grant funding is one of the best launching platforms for a startup. Not only is the funding non-dilutive but also the award itself is a strong indicator for continued fund raising success. After winning an SBIR grant, over half of TFG clients have received additional outside funding, so far. Since TFG’s inception, these awardees received $21.1 million in outside grant and equity funds. Equity funding represents $16.5 million.

The below chart only reflects the half of TFG’s SBIR winners who went on to raise additional funds. TFG advisors continue to assist the other companies in fund raising.

Data from June 2012 - June 2017* Known as America’s Seed Fund the SBIR grant program invests in high-risk R&D projects that demonstrate “scientific excellence and technological innovation”. The final objective of the program is to spur innovation and commercialization in areas that meet Federal government or public needs. For angel investors and venture capitalists, winning an SBIR Phase I grant (maximum $225,000) demonstrates technological viability and helps de-risk the technology; a Phase II grant (maximum $1,000,000) further de-risks the technology through development of a prototype and brings the company much closer to commercialization. For technologies that meet Federal government needs, agencies may sign sole source contracts with the SBIR awardee. Investors value this reduction of technology and commercialization risk, and the potential large revenue contracts with Federal departments. Winning an SBIR grant is strong validation for investors. Increasingly equity investors fund startups that have been awarded an SBIR grant. For TFG clients, the time lag between SBIR award date and equity funding is roughly six months. This suggests that equity investors move more quickly once a target company wins an SBIR grant. However, for those twenty clients who submitted an SBIR application and were not awarded a grant, only one company raised funds — just $770,000, so far. TFG continues to work with them to raise non-SBIR funds. For Tech Futures Group clients, success with the SBIR grant program is a strong, early predictor of future fund raising success.

Data from June 2012 - June 2017*

Known as America’s Seed Fund the SBIR grant program invests in high-risk R&D projects that demonstrate “scientific excellence and technological innovation”. The final objective of the program is to spur innovation and commercialization in areas that meet Federal government or public needs.

For angel investors and venture capitalists, winning an SBIR Phase I grant (maximum $225,000) demonstrates technological viability and helps de-risk the technology; a Phase II grant (maximum $1,000,000) further de-risks the technology through development of a prototype and brings the company much closer to commercialization. For technologies that meet Federal government needs, agencies may sign sole source contracts with the SBIR awardee. Investors value this reduction of technology and commercialization risk, and the potential large revenue contracts with Federal departments.

Winning an SBIR grant is strong validation for investors. Increasingly equity investors fund startups that have been awarded an SBIR grant.

For TFG clients, the time lag between SBIR award date and equity funding is roughly six months. This suggests that equity investors move more quickly once a target company wins an SBIR grant.

However, for those twenty clients who submitted an SBIR application and were not awarded a grant, only one company raised funds — just $770,000, so far. TFG continues to work with them to raise non-SBIR funds.

For Tech Futures Group clients, success with the SBIR grant program is a strong, early predictor of future fund raising success.