SpaceWERX STRATFI

SpaceWERX STRATFI (Strategic Funding Increase)

Funds U.S. small businesses scaling strategic space technologies through SBIR/STTR matching contracts with government and private co-investment.

SpaceWERX STRATFI (Strategic Funding Increase) is a supplemental funding program run by SpaceWERX — the innovation arm of the U.S. Space Force — under the DoD SBIR/STTR supplemental funding pilot authority. STRATFI bridges the gap between SBIR/STTR Phase II and Phase III, giving Phase II awardees additional SBIR/STTR funds matched by government and/or private co-investment. The program awarded $72 million in 2023, which leveraged matched funds to deliver more than $125 million in total benefit across 14 technology programs. In Program Year 25, 115 companies were selected (27 STRATFI, 88 TACFI) with $499 million in SBIR funds and $556 million in government matching.

Single-company STRATFI awards range from $3 million to $15 million in SBIR/STTR funds. Matching is required and comes in two options: (1) Government-Only Matching — $1 of SBIR funds for every $2 of non-SBIR government funds; or (2) Government-Private Matching — $1 of SBIR funds for every $1 of non-SBIR government funds and $2 of private investment. The total combined investment per company can range from $9 million to $45 million under Government-Private Matching at the minimum ratio. Matching funds must not be SBIR/STTR dollars from another federal agency.

Eligibility requires the company to be a qualifying Small Business Concern (SBC) under SBA rules, to be performing under an active SBIR/STTR Phase II award or to have completed Phase II within the past two years, and to not be executing a prior STRATFI effort at the time of submission. The company must be U.S.-based and 500 or fewer employees. Private matching funds must come from outside investors — internal company funds, owners, and affiliates do not qualify. Each Program Year has one or two Notice of Opportunity (NOO) cycles.

Applications are submitted in response to a Notice of Opportunity released by SpaceWERX. The NOO includes a Capability Package (proposal), Spend Plan, and Funding Letters documenting the matching contributions. Government Partners review applications and coordinate through the DAF STRATFI Teams channel. Scoring considers technical progress, transition potential, matching fund credibility, and alignment with USSF needs.

Key caveats: STRATFI is not open to all applicants — you must have an active or recent Phase II contract as a prerequisite. The matching requirement is non-negotiable; without committed matching funds, proposals are not eligible. Private matching funds that are loans must include automatic conversion to equity within five years. Companies majority-owned by VCs may participate but the VC's share is subject to SBA affiliation rules.