Are SBIR's Worth It?
SBIRs—Small Business Innovation Research grants—have a reputation for polarizing opinions among defense contractors and innovators alike. Some view them as valuable entry points to U.S. government funding; others see them as resource drains with questionable returns. But regardless of where you stand emotionally, the reality is clear: they are part of the U.S. Government’s innovation pipeline.
So, how do you decide if they’re worth the effort? To answer that, you need a systematic approach that weighs key factors objectively:
Preparation Cost: The initial time and resources to prepare a competitive submission are significant, especially when factoring in detailed research, proposal writing, and compliance checks.
Reward Size: Even if you win, SBIRs often provide limited funding in early phases, which can feel more like seed money than substantial project funding.
Probability of Winning: The odds of success depend heavily on alignment with the topic, timing, and the evaluator’s perspective. It’s a gamble, often yielding uncertain outcomes.
Work After Award: Winning isn’t the finish line; it’s the starting block. You must be prepared for the execution workload, which is often underfunded relative to the problem scope.
That’s why we created the SBIR Present Value Calculator—a Google Sheet designed to quantify these factors and help determine if a particular SBIR is worth pursuing. Since the tool is ready to use, feel free to access it, provide feedback, or tweak the assumptions to better fit your model.
Good luck navigating the maze of government funding. Happy hunting!
