Our ER&D Program Vs. Traditional Funding Sources

While venture capital funding exceeded $100 Billion in the year 2000, figures for 2004 reflect investments of only 20% of this amount, according to data from the National Venture Capital Association. Funding for start-up and earlier stage companies is even harder to come by since most venture capital investment goes to support later stage operations. For example, less than 2% of the $20 billion dollars invested by venture capitalists in 2004 went to seed-stage companies.

The ER&D Program utilizes government research programs such as the Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR). Department of Defense (DoD) funding of these programs has been increasing and is now over $1 billion a year!

This research funding supports very early technology development while not reducing owner equity nor increasing corporate debt. In short, one can develop the technology and increase the value of the company before taking any investor money. If it is used wisely, one can significantly reduce the percentage of his/her company that is required to be traded for the cash he/she will need to grow the company in areas that the SBIR program will not support.

Learn more about SBIR / STTR Programs:

DoD SBIR Main Page
SBIR World
SBIR/STTR Gateway & Search Engine

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