NSF SBIR/STTR (America's Seed Fund)

NSF STTR Phase II

Funds United States deep-tech projects that continue with nonprofit research partners after successful initial feasibility work.

NSF STTR Phase II is the Small Business Technology Transfer continuation award for companies that have completed an NSF STTR Phase I project in partnership with a qualifying non-profit research institution. The program operates under the same solicitation family as NSF SBIR (NSF24-580 governs Phase II for both tracks) and offers an identical base award of up to $1,250,000 over 24 months, with a funding pool of approximately $15 million per cycle. Award sizes range from $500,000 to $1,250,000, with a median near $1,100,000. The same supplemental mechanisms available in SBIR Phase II — which can add more than $500,000 — apply equally to STTR Phase II.

The defining structural requirement of STTR is mandatory partnership with a non-profit research institution throughout Phase II. The small business concern must perform at least 40% of the research budget, and the partner research institution must perform at least 30%. This 40/30 split must be maintained and reflected in the Phase II budget narrative. The same ownership and size rules as SBIR apply: the lead company must be a U.S.-based small business with 500 or fewer employees, majority U.S.-owned, and not majority-held by VCs, hedge funds, or PE firms. Individual researchers, non-profit business concerns, universities, and stand-alone research organizations may not serve as lead applicants. NSF may, at its discretion, convert STTR proposals meeting SBIR criteria to SBIR track, and vice versa.

Phase II STTR proposals are invitation-only, following the same Project Pitch process as SBIR: a Program Officer reviews a short pitch and issues a formal invitation before the full proposal may be submitted. Three to five letters of support from potential customers or users are required. All submissions go through Research.gov. NSF runs three deadlines per year, and a single organization may submit only one pitch or proposal per deadline. The built-in TABA allocation of up to $50,000 applies, and voluntary committed cost sharing is prohibited. The award is non-dilutive — NSF holds no equity. TRL window for Phase II eligibility is 4 to 7.