Ask most clinician-founders how they plan to fund their first prototype and the answer is usually “an investor” or “my own money.” Both work. Neither is the only option — and for a device that’s still a year or more from a fundable product, they’re often not the best option. The federal government runs two grant programs built specifically for exactly this stage: SBIR and STTR.
If you’re preparing to compete for this Expo’s $50,000, these are worth understanding regardless of outcome: they’re the same non-dilutive funding logic, at a much larger scale.
What SBIR and STTR actually are
SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) are federal grant programs that fund early-stage research and development at small businesses — including, for many agencies, healthcare and medical device startups. Between them, agencies like the NIH, NSF, and DoD award billions annually, and individual awards can reach into the low millions across a project’s phases.
The single most important word in that description is non-dilutive. This is not investment. You give up no equity and no board seat to receive it.
The core difference between the two
- SBIR requires the small business itself to perform at least two-thirds of the research (Phase I) or half (Phase II). You can be the business.
- STTR requires a formal partnership with a research institution — a university, typically — which must perform at least 30% of the work. If your idea grew out of a university lab, STTR is often the more natural fit, and the built-in institutional partner can strengthen your application.
The phase structure
Both programs run in phases:
- Phase I — feasibility. Typically six months to a year, funding usually in the low hundreds of thousands, meant to prove the concept works.
- Phase II — full development. Multi-year, and where award sizes climb toward the $1–2 million range some agencies advertise.
- Phase III — commercialization, funded outside the SBIR/STTR system (private capital, acquisition, or direct sales).
Each federal agency runs its own SBIR/STTR program with its own topics and deadlines. For medical innovation specifically, the NIH is the most directly relevant agency, with topics spanning devices, diagnostics, and digital health — closely aligned with this Expo’s own eligibility rules.
Why this matters even if you don’t apply immediately
A well-written SBIR or STTR application forces the same discipline as a strong pitch deck: a clearly stated problem, a specific technical approach, and a believable commercialization path. Founders who’ve been through the process consistently say drafting the application sharpened their thinking regardless of the outcome.
And because it’s non-dilutive, it stacks. A team that wins here, and separately pursues SBIR/STTR funding, hasn’t spent one dollar of funding against the other.
Where to start
The federal government maintains a single entry point for both programs at sbir.gov, including an agency-by-agency directory of open solicitations and deadlines. The NIH’s SBIR/STTR program specifically is documented at sbir.nih.gov.
Med Innovation Expo participants get access to guidance on navigating both programs as part of our broader community — whether or not you’re a finalist.