Latest news with #SmallBusinessTechnologyTransfer
Boston Globe
05-05-2025
- Business
- Boston Globe
Innovation at risk: Congress must make vital small-business programs permanent
Advertisement But the innovation economy is under threat. The Trump administration is slashing federal research funds to public universities and cutting experienced research staff across agencies, including at the National Institutes of Health. These reckless cuts will jeopardize future breakthroughs and sacrifice US competitiveness. We cannot cede next-generation technologies to other countries. To support and grow the innovation economy, the federal government must bolster the successful initiatives that help keep the United States at the front of the pack. Since 1982 and 1992, respectively, the Small Business Innovation Research and Small Business Technology Transfer programs have delivered federal research and development funding exclusively for innovative small businesses and the research institutions they partner with — without forcing entrepreneurs to give up ownership in their companies. For every dollar spent, these programs have produced Advertisement Since the creation of SBIR and STTR, Massachusetts small businesses have become some of the best innovation partners for the federal government and have benefited significantly, receiving In the biotechnology sector, private early-stage funding can be especially hard to secure because it is capital intensive and requires years of trials and research before products reach patients. Yet, some Republicans in Congress are demanding major reforms that would hamstring these programs and stifle innovation — all to benefit private interests and private profits. Republican proposals to reform the SBIR and STTR programs would force innovative small businesses to rely on hard-to-secure private investment, which would require entrepreneurs to give up partial ownership in their companies. There is even a proposal to cap the amount of funding available to a single company within the programs, which would end the more than 40 years of a merit-based system. These federal programs were created by Congress, on a bipartisan basis, with the belief that the government has a responsibility to invest in innovative small businesses to further foster innovation in America. Advertisement Thanks in part to the SBIR and STTR programs, the United States has experienced a golden age of innovation over the past several decades. To build on this success and fuel a robust innovation economy, Congress must ensure SBIR and STTR can meet the growing needs of entrepreneurs and small businesses for years to come. It can do this by
Newsweek
01-05-2025
- Science
- Newsweek
Sweating Spacecraft May Be the Key To Greener Space Travel
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Space junk surrounds us. The European Space Agency estimates that there are approximately 130 million pieces of space junk from the over 6,800 successful rocket launches that have occurred since 1957. The South Pacific Ocean Uninhabited Area (SPOUA), a region near Point Nemo, is called the spacecraft cemetery as it is where those craft are routinely crashed at the end of their usefulness. Orbital debris falls into the Earth's atmosphere and burns up on its way back down. Until recently, marked notably by the multiple successes by SpaceX, many spacecraft have been one-and-done use cases. The longest-serving spacecraft in history, the space shuttle Discovery, only flew a few dozen times before it was retired in 2011. Scientists at Texas A&M University's Department of Aerospace Engineering are working to develop and test a 3D-printed material that aims to make spacecraft reusable and space travel greener in partnership with Canopy Aerospace. The work is enabled by a $1.7 million Air Force Small Business Technology Transfer grant. Reentering The Atmosphere Reentering The Atmosphere Photo-illustration by Newsweek/Getty Spacecraft returning to Earth are subjected to intense heat. NASA's space shuttle experiences temperatures around 2,700 degrees Fahrenheit during reentry. NASA's Orion spaceship sustains even hotter temperatures, near 5,000 degrees Fahrenheit, the same temperature Apollo 13 reached during its reentry. Even higher temperatures are possible during hypersonic reentry. Traditionally, spacecraft rely on heat shields or ceramic tiles to serve as a barrier from the extreme temperatures. SpaceX's Starship has an advanced heat shield, made up of approximately 18,000 hexagonal tiles. The solution the partners are looking to prove out is a cooling method that acts as a heat barrier. Experts are testing transpiration cooling for spacecraft. This method features a layer of gas along the craft's surface that cools it and provides a barrier between the craft and extreme temperatures. "The air around rockets becomes extremely hot as they reenter Earth's atmosphere — often exceeding 10,000 degrees Celsius. This requires heat shields to protect the rocket from overheating, which are not fully reusable. Upon mission completion, they need to be replaced or refurbished, which makes space travel astronomically expensive," Dr. Hassan Saad Ifti, assistant professor of aerospace engineering at Texas A&M University, told Newsweek. "This technology creates a gaseous layer as the rocket 'sweats' or transpires a coolant gas, which acts as the heat shield. Once the mission is complete, the coolant gas tanks can be refueled for the next mission. This would make the rocket more reusable, and perhaps one day, we will have a fully and rapidly reusable rocket, just like the aircraft we fly today," he said. This thermal effect is similar to how a puffer jacket works, Dr. Ifti explained. "This is why a puffer jacket is so effective. It traps air in these pockets, so it is the insulation from the air keeping you warm, not the solid part of the jacket." The hypothesis is that when a vehicle uses the gas barrier as opposed to a single-use heat shield, flight times between missions could be reduced from years or months to days or hours, more similar to the turnaround time of a traditional passenger jet. The gas barrier is not a new concept. Though the idea has existed for years, limitations in materials science, computational power and ground testing abilities have made it challenging to implement, Ifti said. Testing rig development is being led by William Matthews, a fourth-year Ph.D. student at Texas A&M. "We should see that the material's surface is cooler at hypersonic speeds when the coolant flow is introduced than the baseline when no coolant is present," Matthews said. "Depending on how well the gas permeates the material, there are a lot of potential outcomes for this technology, and these tests should help us decide which direction we want to go." Initial wind tunnel testing will take place at Texas A&M Engineering Experiment Station's National Aerothermochemistry and Hypersonics Laboratory. The results of that testing will determine if a full-scale testing mission is worth investing in ahead of any possible application for commercial use. "I am optimistic about this technology," said Ifti. "If all goes well, we could see sweaty spacecraft in the sky by the end of our lifetimes."
Technical.ly
28-04-2025
- Business
- Technical.ly
Startups often struggle with grant applications. A new group wants to change that.
A new coalition wants to make sure Pittsburgh companies don't leave federal money on the table. The Pittsburgh Technology Council and Keystone Space Collaborative have teamed up to launch the Data, Robotics, Energy, AI, Manufacturing and Security (DREAMS) Coalition, an initiative designed to help local companies in that industry cluster better apply for federal grant funding. The application to be considered for the coalition, announced last week, is open to companies at all stages to apply — and it comes at just the right time. Local companies need help applying for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding, especially in the current 'uncertain federal funding environment,' said Justine Kasznica, founder and board chair of Keystone Space Collaborative. Bringing businesses together in a coworking space and connecting them with government agencies and investment stakeholders provides the foundation to score more grants. 'There [are] a number of these companies that really need support,' Kasznica said, 'identifying what opportunities exist and then sitting down and figuring out what they need to do to maximize their chances of getting critical early-stage [research and development] dollars.' From startups that are first-time applicants to seasoned businesses, the DREAMS coalition is seeking companies with expertise in data, robotics, energy, AI, manufacturing and security that can apply their skills to solve problems identified by federal agencies. Along with offering federal funding assistance, the coalition will provide a collaborative workspace in Bakery Square and facilitate connections to industry stakeholders and investors to propel advanced technology startups in aerospace, robotics, AI and manufacturing. 'If you take the assets we have in this region, both historical and recent, there's not one industry that's going to take us to the next iteration of Pittsburgh,' Audrey Russo, president and CEO of the Pittsburgh Technology Council, told 'The diversity of the [coalition's] industries are only going to make us stronger.' As applications roll in, companies could begin receiving support at the coalition's coworking space as early as next month, according to Kasznica and Russo. The coalition is currently in a six-month pilot phase, but if it proves successful, the Pittsburgh Technology Council and Keystone Space Collaborative plan to extend the initiative and establish a more permanent location. 'We're calling it a pilot because we want to test out this broader industry cluster,' Kasznica said. 'How we evaluate ourselves is based on how many new projects and funding dollars we can bring to new technologies or existing companies.' Instead of supplying access to cash like accelerators and incubators, the coalition relies on the importance of building connections and providing hands-on guidance through the grant application process. A tough fed funding landscape still rife with opportunities Despite the uncertain federal funding landscape, Russo and Kasznica both said they were optimistic about local companies securing grants moving forward. Since the creation of the SBIR and STTR programs, Pittsburgh companies have received over $400 million for innovation research and new technology development across over 1,000 grant awards. The early-stage, non-dilutive funding has allowed Pittsburgh to compete with larger cities that have more private capital and has helped numerous local startups get off the ground. The coalition will specifically target agencies in aerospace and defense, Kasznica said, which aligns with the type of funding Pittsburgh companies have received to date. A majority of the grants to Pittsburgh companies have come from the Department of Defense, with the other top agencies being the Department of Health and Human Services, NASA, the Department of Energy and the National Science Foundation. 'We're anticipating even more opportunities, in some cases, particularly for the future technology development that we're looking at doing in this region, which is advanced manufacturing, robotics and AI,' Kasznica said. 'There's a real appetite for that, even with this administration.' Through DREAMS, Kasznica and Russo want to keep those dollars flowing into the region. What early-stage companies often get wrong when applying for grants, according to Kasznica, is approaching the process with a product-first mindset and trying to pitch a product they've already built. The coalition aims to shift this approach early on by encouraging companies to first understand the needs of potential customers and then apply their expertise in robotics, manufacturing, or AI to solve those specific problems. 'It's really important to have good processes intact and people around you that have experience doing this kind of work,' Russo said, 'so that you can understand what you're able to leverage and what you need to make it happen.' Plus, a free coworking space to spread knowledge even further With a $60,000 grant from the Benedum Foundation, the coalition is leasing space at Spaces Bakery Square, utilizing the coworking hub with 11 rooms, including private offices and flexible conference and working areas that could accommodate up to 30 people. Staff from the Pittsburgh Technology Council, Keystone Space Collaborative and innovation research firm Parallax will all be onsite to work with participating companies. Through the no-cost coworking space, companies will gain access to mentorship and open office hours with a Parallax team member who specializes in connecting universities, businesses and government. Also, eligible members will be able to access Keystone Innovation Zone tax credits, further incentivizing growth. Additional programming could include workshops on scaling innovation and networking events designed to build a strong, connected entrepreneurial ecosystem, according to a recent press release. 'We need a better concierge system, which is what we're trying to set up here with this coalition,' Kasznica said. 'This isn't a traditional accelerator … we're not giving money out, but we're providing a place to come and participate, meet potential partners and funders.'
Technical.ly
09-04-2025
- Business
- Technical.ly
Startup founders still believe in Philadelphia, despite the funding squeeze
As federal funding cuts and policy changes put a squeeze on startup financing, Philly founders are still working to grow their companies locally — even amid pressure from investors to move elsewhere. There's a lot that goes into the decision to leave or expand outside of your home region, several entrepreneurs said last week at a dinner celebrating the 2025 Philly RealLIST Startups. In addition to funding, founders said, they consider factors like their footprint in the local ecosystem and what opportunities and challenges come from operating a physical space there. Philadelphia can be great for raising an early round, but as a company becomes more successful, investors often suggest founders to move their business to places like New York and San Francisco, said Nick Ashburn, founder and CEO of financial wellness platform Personawealth. 'I'm really scared if and when I do raise outside capital,' said Ashburn, whose company has so far been bootstrapped, 'that they're going to make me go somewhere else.' Philadelphia isn't as investor-friendly for later stages as San Francisco or Austin, agreed Jason Sherman, CEO of social connection app Spinnr. It would probably be easier to raise bigger amounts if he did move, Sherman noted, because investors have already asked him to do just that. However, being forced to be more careful with money isn't necessarily a bad thing, observed Patty Tawadros, CEO of biospecimen donation platform Donor X. 'It forces you to be leaner in the way you're spending money and you're giving up less equity later,' Tawardros said. She added that a founder could potentially have it both ways. 'If you have to leave the more … affordable ecosystem, go to New York, Boston, California, raise the money and then come back and spend it here, what's wrong with that?' Despite Philly's relative affordability, its startups still face the same macroeconomic challenges as the rest of the country. Right now, a big one is the uncertainty about whether Congress will renew the Small Business Innovation Research and Small Business Technology Transfer programs. Known as SBIR and STTR and often called the US government's 'seed fund,' these programs have long played a key role as one of the only sources of major nondilutive funding for early-stage companies. Joshua Freedman, cofounder and CEO of early-stage medical device company Airalux, is currently waiting to hear about SBIR funding. But review dates keep getting pushed back and no one knows what's going to happen, he said. Government grants helped Vertical Solar Generator (VSG) prototype its stackable solar energy system, but some of those sources have stopped, said cofounder and COO Charles Mbata. His company is considering pivoting to crowdfunding and private equity to support further development. A physical office: Investment in the local community For some startups, the federal turmoil means the possibility of losing major clients. HouseCallVR, which uses virtual reality to educate patients, counted the US Department of Veterans Affairs as one of its first clients, per cofounder and CEO Linda Ciavarelli. But now, because of the new landscape, 'that's been a challenge,' Ciavarelli said. 'They're not necessarily as interested in implementing emerging technologies.' Ciavarelli's staff works from all over the world, so she's not planning to open a physical office, and that sentiment was echoed by many at the RealLIST Startups dinner. But like last year, opinion was split on work modality. Several founders see an IRL workspace as something keeping them tethered to Philadelphia, in a good way. FSH Technologies, which offers software for city operations, opened an office in Center City in March, cofounder Johnson Lin said. Virtual work was fine when the company was building a project or doing routine work, but they found that it's better to be in-person when they're trying to problem-solve or pivot. 'People just brainstorm together on a whiteboard for two or three hours,' Lin said. 'It's been so much nicer to have these conversations, be in person, in the office.' Opening a physical space also solidifies the company's presence in Philadelphia, especially as it recruits talent and builds partnerships with local workforce development orgs like Philadelphia Works, Mbata of VSG said. Neftwerk, which uses blockchain technology to create a marketplace for buying and selling art, reaches an international market, said founder and CEO Francesca Augustine. But she still wants to invest in Philly by creating local jobs and giving back to the community. 'Since we're working with new tech, [we want] to be part of training people in Philadelphia to take those jobs,' Augustine said. 'We're pretty passionate about building here in Philadelphia and creating an ecosystem in Philadelphia.' Sarah Huffman is a 2022-2024 corps member for Report for America, an initiative of The Groundtruth Project that pairs young journalists with local newsrooms. This position is supported by the Lenfest Institute for Journalism.
Technical.ly
27-03-2025
- Business
- Technical.ly
US government's expiring ‘seed fund' sends millions to Pittsburgh startups — but Congress may change that
The SBIR and STTR programs provide non-dilutive funding to small businesses and startups to drive technological innovation, particularly in fields like defense, health, energy and space. Pittsburgh-based companies have received significant funding from these programs, totaling nearly $427 million, allowing them to compete with larger tech hubs that have more private capital and supporting innovations in robotics, aerospace and AI. The programs have been instrumental in supporting startup accelerators and companies like Astrobotic and Neya Systems, providing essential capital for early-stage technology development that might otherwise struggle to attract investment. Two federal programs known as 'America's seed fund' are set to expire this September, threatening a key source of early-stage capital for startups in Pittsburgh and other mid-size tech hubs. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding are US government programs that invest in startups and small businesses to spur technological innovation. They could face major changes under Congress's plans to reauthorize them. Since the creation of these programs, Pittsburgh companies have received almost $427 million for innovation research and new technology development, according to data available through the Small Business Administration (SBA). Innovations such as new medical devices and aerospace technology have come from the grants, allowing Pittsburgh to compete with larger cities that have more private capital, stakeholders say. 'Early-stage, non-dilutive funding such as SBIR or STTR has been very important in getting companies off the ground,' Kevin Dowling, managing director of the startup accelerator initiative the Robotics Factory, told Now, the ongoing reliability of SBIR and STTR funding has recently come into question after years of substantial innovation from the programs — and Pittsburgh orgs are reflecting on how much the grants have boosted economic growth. What are SBIR and STTR funds? SBIR and STTR grants are awarded to companies that apply through government agencies, like the Department of Defense (DOD) or the Department of Health and Human Services (HHS). The funds go to projects that fulfill the research and development needs of the federal government across various fields, including defense, health, energy, space and more. President Donald Trump's administration has attempted to freeze federal funding, which could include these programs run by several federal agencies. As of this month, multiple judges have blocked the order, but uncertainty over the future of this funding remains. Either way, Congress will be required to reauthorize the funding by the end of September. A bill to extend funding into 2028, called the Innovation Act, was introduced by Senator Joni Ernst from Iowa (R) earlier this month. While the bill would increase the SBIR budget, it proposes cuts to the STTR program, the end of diversity tracking of grant recipients and stricter limits on SBIR participation to reduce over-reliance on the program. 'Extraordinary boon for small, nascent companies' Since the first SBIR award was given to a Pittsburgh company in 1983, federal funding flowing to the city has steadily increased. A majority of the funding to Pittsburgh companies has come from the Department of Defense, with the other top agencies offering assistance to the region being HHS, NASA, the Department of Energy and the National Science Foundation. 'Just consider the defense-related companies in the region that all began with SBIRs and STTRs and later progressed to programs of record,' Dowling said. 'Neya, Near Earth, RE2 before they were acquired, Carnegie Robotics, ProtoInnovations and more.' One of those companies alone, software startup Neya Systems, has received over $10 million in federal funds from these programs to develop autonomous software that protects soldiers serving on the front lines. The programs have been an 'extraordinary boon for small, nascent companies,' Dowling said. The funds have also contributed to the growth of companies emerging from academia, he added, like Carnegie Robotics, a Carnegie Mellon University spinout that's received over $3.5 million in awards from the DOD. SBIR and STTR funds the space race, startup accelerators and more Pittsburgh-based companies have received a total of 1,117 awards from the SBIR and STTR since the programs' inception, helping them develop a range of new technologies. For example, Pittsburgh-based aerospace company Astrobotic is one of the largest recipients of these funds in the city, with over 45 awards totaling approximately $23 million to the company since it was founded nearly two decades ago. 'SBIR and STTR funding has been instrumental in providing Astrobotic early seed funding to develop key technologies that have since enabled our flagship lunar lander, rover, and power grid services,' said Alivia Chapla, director of marketing and communications for Astrobotic. 'This funding has enabled us to design, prototype and bring to market new space technologies.' A great example, Chapla said, is Astrobotic's Terrain Relative Navigation (TRN) sensor. The TRN sensor, which uses cameras and onboard maps to land a spacecraft on the moon precisely, was developed with SBIR funding. The TRN sensor technology did not previously exist for lunar missions and was developed because the moon's environment blocks GPS signals. The technology could potentially be used in a future mission to Mars, according to NASA. These programs also support organizations that provide accelerator programs or other technical assistance to local startups, like the Robotics Factory, an initiative to support robotics startups in Pittsburgh under the nonprofit Innovation Works. Innovation Works was a 2021 Growth Accelerator Fund Competition partner, meaning it targeted its assistance to STEM and research and development entrepreneurs from underrepresented groups. An unparalleled opportunity for startups to take risks What makes SBIR/STTR funding unique among startup financing options is that it's equity free, meaning founders do not have to trade any ownership for the funding. Venture capital funding, however, is often dilutive. Other forms of equity-free funding could include loans or funds awarded through competitions, but it can be hard to find large amounts of funding like the federal grants are able to provide. This type of funding 'largely does not have an equal elsewhere in the capital investment markets,' Chapla said. Plus, it opens up opportunities to take risks — especially amid underrepresented groups. One of the original objectives set by Congress for SBIR funding when it was crafted in 1982 was 'to foster and encourage participation by minority and disadvantaged persons in technological innovation.' Around 3% of awards to Pittsburgh-based companies have gone to HUBZone-owned businesses. To qualify as HUBZone-owned, a business must be majority-owned by a U.S. citizen, located in an economically distressed area designated as a HUBZone by the SBA, and have at least 35% of its employees residing in a HUBZone. Approximately 5% of awards have been granted to businesses that are majority-owned by women or individuals who are considered socially and economically disadvantaged. Efforts prioritizing underrepresented groups have faced more scrutiny under the current president. The Trump administration has worked to eliminate initiatives focused on promoting diversity, equity, and inclusion (DEI) within the federal government. Soon after returning to the Oval Office for a second term in January, Trump signed executive orders rescinding President Joe Biden's efforts to incorporate DEI initiatives into federal institutions and end 'illegal DEI' preferencing in federal contracting. Fewer funding opportunities could be damaging for cities like Pittsburgh. The intersection of robotics, aerospace and AI is fueling economic growth in the city, but Pittsburgh often struggles to get local, late-stage funding, so SBIR and STTR funds have been a major catalyst for growth, according to Chapla. 'For Pittsburgh, this levels the playing field,' she said. 'Other cities may have larger sums of private capital more readily available on their home turf, but any company in America can access, compete and win SBIRs to launch their next great idea.'
