Joe Catino
President & CEO, Helix Therapeutics LLC
Connecticut has a clear interest in starting and supporting companies that provide quality employment opportunities, particularly in the areas of bioscience and high technology. Connecticut Innovations and CURE (Connecticut United for Research Excellence) are shining examples of that interest, although certainly they are not the only organizations supporting entrepreneurial activities. My move from the large corporate environment to the startup arena has provided many challenges but also the opportunity to probe the system, both locally and beyond, for any assistance or ways to stretch a dollar.
One area in which our Nutmeg State could aid startup companies is to provide matching funds for federal Small Business Innovation Research and Small Business Technology Transfer grants. A number of states provide matching awards to successful SBIR/STTR applicants. An awards program would be easy to administer, as the work has already been peer reviewed by experts and deemed worthy of funding. These grants are focused on commercial realization, presumably the basis for success, and continued employment opportunities. Calculating the budget amount required for matching awards is also relatively easy, as SBIR/STTR awards are public information and projections are simple math.
SBIR/STTR awards are wonderful, non-dilutive funding – but they rarely are sufficient to fund the work required to achieve key milestones. The possibility of driving SBIR/STTR projects even further toward commercial realization should be very tantalizing to the state. Connecticut already faces serious budget concerns, but the opportunity to leverage an existing program even further – to support the development and stability of high-tech employment in our state – seems too good to pass up.
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Posted under Portfolio company guest article
This post was written by admin on January 26, 2010
Mr. Cantino’s suggestion should be implemented and in a way that enables SBIR/STTR winners the opportunity to leverage the State funding in supplemental SBIR programs.
Some SBIR agencies offer supplemental funding to their grant winners based on third party funding. For example, SecureRF Corporation was able to participate in the National Science Foundation’s Phase IB grant program which matches up to 50% of the funds committed by eligible outside funding. These eligible funders can include “non-SBIR/STTR grants and contracts from State and Federal Governments directly tied to the research project envisioned by the Phase I application and its logical extension into Phase II and commercialization.” The NSF has a second program which offers Phase II SBIR winners matching funds up to $500,000.
A State matching grant program would make it easier for small Connecticut businesses to bridge the gap in funding in the SBIR program and work towards successful commercialization.
Joanne C. Kelleher
SecureRF Corporation