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SBIR Process is Right on Time

2012 January 29
by Michael Kurek

Entrepreneurs often tell us they avoid going after SBIR funding because it’s “too slow” and doesn’t meet the “need-for-speed” in their fast-moving market. Well, a recent study from Harvard Business School reports that serial entrepreneurs (that is, those that have previously raised VC funding successfully) require an average of 21 months to fund a subsequent company. On the other hand, first-time entrepreneurs take 37 months! Thirty-seven months is approximately the average duration of a complete Phase I + Phase II SBIR R&D project.  If that isn’t compelling enough, remember that SBIR/STTR is non-dilutive capital.  No equity.  No interest.  In other words… free.  If you haven’t already done so it may be time to reconsider SBIR/STTR as part of your funding strategy.

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Michael P. Kurek, PhD, MBA, Partner, BBC

2012: A Happy New Year for SBIR

2012 January 13
by Lisa Kurek

Happy New YearIn case you haven’t yet heard the news, Congress finally reauthorized the SBIR/STTR programs! This six-year reauthorization includes many changes to the current program. The SBA has statutory authority to create and promulgate SBIR and STTR policy directives based on these legislative changes. The federal agencies subject to the SBIR/STTR legislation are obligated to follow these directives. The process of developing and implementing the directives will take time. To quote Rick Shindell of the SBIR Insider Newsletter, “this will not be business as usual.”A few key points from the January 4 issue of Rick’s newsletter follow:

  • By law, the SBA is to issue updated SBIR and STTR policy directives (PD) no later than June 29, 2012 for most of the programs, and by April 30, 2012 for guidance on the eligibility/ownership issues.
  • Before the SBA can implement the PD, they must publish a proposed PD in the Federal Register and open for public comment (usually 30 days).
  • Take a look on the SBIR Gateway at www.zyn.com/sbir/sbres/sba-pd/ and you’ll get a better idea of the SBA’s SBIR PD and its process. It also includes some PD discussion topics relevant to that PD.

We encourage you to subscribe to The SBIR Insider Newsletter to stay informed about the process. As changes are implemented, BBC will be updating our training curriculum. We will be offering extensive training opportunities around the country in 2012 – from general SBIR/STTR overviews to detailed agency specific proposal workshops – that will include all of the changes as they become effective.

The new SBIR/STTR presents exciting opportunities including expanded eligibility and increased funding. We project this will also mean increased competition. The entire BBC team looks forward to working with you to help you meet the competition head on. What are we most excited about in 2012? We no longer will have to reach out to you to help with reauthorization and now we can reach out to you to help you secure SBIR/STTR funding.

Happy New Year!

Time to Revisit Your Company’s IP Strategy

2011 December 6

The America Invents Act, recently passed by the House and Senate, will significantly change current U.S. patent laws. Its potential impact on early-stage technology companies and individual inventors is a matter of some dispute but all seem to agree that all parties must understand the new rules of the game and adjust their intellectual property (IP) strategies accordingly.

In addition to changing the basis for patent priority dates from “first-to-invent” to “first-to-file” the new law provides a mechanism for challenging new patent applications at the USPTO prior to a patent being issued. Small business advocates contend the changes put innovators at a disadvantage because they typically have limited financial resources but will be forced to file patent applications earlier in the development process before the potential value of an invention is well understood. Proponents of the law claim the new process will make the patent review process faster and less expensive.

The bottom line … if your business strategy depends on protection of IP, learn how the new laws will affect your future decisions.

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Michael P. Kurek, PhD, MBA, Partner, BBC

Help…

2011 September 7

Blogging is not easy.  It has been a while since the last entry on our BBC Blog.  The reason is primarily two-fold: (1) It is harder than one would think to come up with topics that you think others would want to read.  (2) Work seems to always get in the way.  And we’ve been very busy at BBC working with clients to help them secure much needed early stage funding in the form of SBIR and STTR grants and contracts.  Which brings me to the reason why I finally made time to start blogging again.

SBIR/STTR funding is once again in jeopardy.  You’ve heard this before, right?  Many times, in fact. Look at what I was blogging about a year ago and it is déjà vu.  This time, however, things seem to be more critical.  Rick Shindell’s SBIR Insider Newsletter has done an amazing job of keeping us all informed since 2008 when the SBIR/STTR reauthorization process began.  The latest issue, however, has a much more dire tone.

What is most troublesome to me is that congress is not debating whether or not the program should continue.  Rather, they are debating various changes to the program and can’t agree.  Most advocates in the entrepreneurial community come down strongly on one side of the debate as articulated in a recent commentary in The JournalTimes.com titled “How Not to Create Jobs – the story of S. 493”.

Regardless of which changes you support, if the entire program dies due to either lack of agreement between the house and senate, or because it is usurped by bigger issues in Washington this will be a serious blow to the technology-based small businesses and the jobs that they create.

Please take action.  Contact your congressional representatives now.  Otherwise you may be reading this same blog again in a few  months, or even worse, there may not be an SBIR program to blog about.

 

 

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Lisa M. Kurek, Managing Partner

Solid Foundation

2011 January 18

A detailed market analysis is the basis of a solid commercialization strategy. For some entrepreneurs, too often what passes for market analysis is simply a billion-dollar figure snatched from a third-party market research study. However, an analysis should deliver more than a number. The end product of a rigorous market analysis is a value proposition statement that encompasses customer, need, product, benefit, and competition.

I encourage you to check out Joe Bockerstette’s article which provides a clear explanation of what an effective value proposition should communicate.  Then sit down and update your market analysis – or get one started if you haven’t already done so!

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Michael P. Kurek, PhD, MBA, Partner, BBC

Talking to Strangers

2011 January 14

My partner Lisa is a consummate networker but let’s face it … networking does not come naturally to everyone … and that’s especially true for scientists and engineers. This fact presents a real challenge for technology entrepreneurs for whom effective networking is often critical to the success of their new enterprise.

To help conquer their twin fears of “talking to strangers” and “personal rejection,” Lisa offers some common sense advice … “networking is not about YOU.” Most people love to talk about themselves. Your job as a networker is to make it easy, and acceptable, for them to do just that. “Open-ended questions” and “active listening” are the secret ingredients of networking pros.

Here are some other tips networking for introverts. (And by the way – Lisa was trained as an engineer and spent many years in the lab!)

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Michael P. Kurek, PhD, MBA, Partner, BBC

Michael’s Mantra

2011 January 4

My partner Michael has an exceptional way of helping our technology entrepreneurs think about commercialization. One of the mantras with which he pesters BBC clients is “product development and business development are activities best done in parallel.” Among the many reasons for this admonition are:

  • Product development emphasizes technology; business development emphasizes customers. Entrepreneurs, and especially technology entrepreneurs, must spend more time with, and thinking about, prospective customers.
  • Effective product development requires that customer needs are part of the mix.
  • Engineers build products. Entrepreneurs build companies. To succeed you must focus on the ultimate, not the intermediate, goal.
  • A clear business strategy and model prepares you for those tough questions from potential investors, customers, and partners.

In this blog Martin Zwillig explains why a start up without a well-developed business strategy is like a rudderless sailboat.  Make sure you are thinking about your customers as you are thinking about your products.  In fact, why not start talking to your customers at the same time as you are developing your products?  Stay tuned for tips on networking to help you get started…

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Lisa M. Kurek, Managing Partner

New Year’s Wishes

2010 December 17
by Lisa Kurek

To our clients and colleagues:

For the 600+ training participants, 125+ companies submitting proposals, 20+ economic development partners, and countless others that worked with us in 2010 to help secure federal funding to drive innovation, we offer our list of wishes for you in the coming year… in rhyme:

May your grants.gov submissions
Always be error free

May you find the keys to new lab space
Under your holiday tree

May your team of brilliant scientists
Get along with your PI

And here’s hoping that your budget negotiations
Never go awry

May you find the inner fortitude
To never procrastinate

And may you never get rejected
Because you submitted late

May all your grant proposals
Leave reviewers filled with awe

That then leads to getting funded
The very best gift of all!

From the entire BBC team: may you have a healthy and prosperous New Year!

May all of your wishes be granted…
…May all of your grants be funded!!


Angels in Decline

2010 October 29

Entrepreneurs are not just imaging it. Start-up funding is becoming more scarce. The  Center for Venture Research at the University of New Hampshire reports that total angel investment in the first half of 2010 dropped  6.5% from the previous year. More ominously, the number of active angels decreased 11% and their start-up and seed investments comprised only 26% of their deals, compared to 35% in 2009 and 45% in 2008.

A scary trend indeed …  considering that angel investors, according to the Kauffman Foundation, have historically provided 90% of early-stage capital to spawn an estimated 30,000 to 50,000 companies per year. The bottom line is that entrepreneurs must get even more creative in tapping alternative sources of high-risk capital, such as grant funding, and use whatever capital they have more efficiently.

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Michael P. Kurek, PhD, MBA, Partner, BBC

Angels with a Deadline

2010 October 25

As reported recently by the Angel Capital Association, Entrepreneurs and investors have been energized by a provision of the Small Business Jobs Act that became law in September 2010. It provides a 100% exemption for gains made by investing in qualified small business stock. This provision is an obvious boon to early-stage investors but also to the entrepreneurs who depend on angels for that high-risk start-up capital.

The law is focused on the right target. A July 2010 report from the Kauffman Foundation concludes that start-up companies create most new jobs in the U.S. economy. Not only millions of jobs every year … but high-paying jobs. John Huston, manager of Ohio TechAngels in Columbus Ohio reports that jobs in their portfolio companies pay an average salary of $83,000.

So what’s the problem? The catch is that the tax exemption applies only to investments made between September 27 and December 31, 2010 forcing investors and entrepreneurs to complete negotiations and due diligence under a tight deadline … not the ideal situation for thoughtful decision-making. Hopefully, this law is one of those good ideas that will become a permanent fixture in the entrepreneurial landscape.

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About the Author: Michael Kurek, PhD, MBA, focuses on commercialization challenges facing early stage entrepreneurs. In his role as BBC Partner he assists clients with projects ranging from developing  SBIR/STTR commercialization plans and fully integrated business plans to providing interim management to start-up life science companies.