SBIR
Also known as: Small Business Innovation Research, NIH SBIR, NSF SBIR
Small Business Innovation Research — a US federal grant program funding early-stage research and development at small businesses.
Full Definition
SBIR grants are awarded by federal agencies (NIH, NSF, DoD, and others) to fund R&D that has commercial potential. Phase I grants ($50K–$300K) fund feasibility studies. Phase II grants ($750K–$2M+) fund prototype development and early validation. Phase IIB and STTR programs provide additional funding pathways. SBIR is non-dilutive — the company retains equity. For healthcare innovators, NIH SBIR is the most common source, with grants evaluated on scientific merit and commercial potential.
Example
A medical device startup receives a $300K NIH Phase I SBIR grant to validate their diagnostic platform in a 50-patient feasibility study. Phase I success supports a $1.5M Phase II application to fund the pivotal study needed for FDA clearance.