Find topics, write proposals, and navigate the phases of non-dilutive defense funding.
Phase I is a short feasibility study, typically six months, that proves your technical concept and earns the right to compete for Phase II. Phase II is the larger R&D effort, usually up to two years, that builds and demonstrates a prototype. Phase I winners are eligible to pursue Phase II; you generally cannot skip straight to Phase II without a qualifying Phase I award or a Direct-to-Phase-II solicitation.
Yes. SBIR and STTR awards are federal R&D contracts or grants, so they fund development without taking equity or requiring repayment. For defense founders, that means extending runway and de-risking technology while keeping your cap table intact. But treat it as fuel for a transition path, not the destination. A string of Phase I awards without a Phase III or program of record is a warning sign, not a milestone.
Phase III is where SBIR-developed technology moves into production or operational use, funded by non-SBIR dollars. Critically, Phase III awards can be sole-sourced without further competition, drawing on your SBIR data rights. A program of record is a funded, budgeted acquisition program in the DoD's PPBE cycle. Transitioning means getting a mission owner to commit real procurement money, the difference between a successful pilot and a fielded capability.
Both are non-dilutive federal R&D programs with the same phase structure, but STTR requires formal partnership with a research institution such as a university or federal lab. STTR mandates that the research institution perform a minimum share of the work, while SBIR places more of the effort on the small business itself. Pick STTR when your technology depends on academic research collaboration; pick SBIR when your team carries the core development in-house.