Launch a Company with Millions of Free Dollars

Entrepreneurs working to launch their businesses and grow their ventures often seek external sources of funding. But obtaining capital from venture capital firms, strategic partners, and even from friends and family is not an easy task. In fact, according to the Census Bureau's most recent Survey of Business Owners, only 2.7% of firms are able to secure startup financing from these outside investors. And, despite the allure of venture capital, the Small Business Administration estimates that only 0.1% to 0.2% of funding requests made to venture capital firms result in an investment. As capital streams have dried up, entrepreneurs are increasingly looking to federal funding sources to cover their high-risk capital needs. Each year, the government awards more than $2 billion to small firms (classified as those firms having fewer than 500 employees) for innovative technological research that leads to the development of products with commercial merit. Through the Small Business Innovation and Research (SBIR) and Small Business Technology Transfer (STTR) programs, the U.S. government awards grants of up to $1 million dollars to startups in the product development stage. So what are the chances of obtaining this free money? Entrepreneurs that need to fund research and development or technology innovation activities are 100 to 200 times more likely to receive a federal SBIR or STTR grant than they are a venture capital investment. Additionally, SBIR and STTR grants are non-dilutive. Unlike debt capital, they do not have a repayment obligation, and unlike equity investments, the government does not receive ownership rights over the firm. So entrepreneurs, who are looking to innovate or conduct research and who need cash to help their companies move from the product development stage to the commercialization stage, should take advantage of the government as a source of funding. Entrepreneurs interested in securing this free money should attend the Ohio Aerospace Institute's SBIR workshop on Wednesday, November 17, 2010 to learn more about these grant programs. Leah’s primary focus as JumpStart’s Market Analyst is developing a deep understanding of the key challenges and opportunities facing entrepreneurs and early-stage companies. Using her experience leading research projects and framing problems to identify creative solutions, Leah works to build stakeholder relationships, ensure the growth and success of client and portfolio companies, and drive organizational strategies. Additionally, Leah brings her insights to life through communications and advocates for and connects entrepreneurs to additional capital and service resources beyond those provided by JumpStart.