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SBIR reauthorization

This article was originally published in The Gray Sheet

Executive Summary

Medical device and other firms seeking Small Business Innovation Research program grant money could be majority-owned by venture capital outfits under the SBIR/STTR Reauthorization Act (S. 3362) approved by the Senate Committee on Small Business and Entrepreneurship July 30. A similar measure was passed by the full House on April 23 ("1The Gray Sheet," April 28, 2008, p. 13). Industry has complained that restrictions on SBIR grants for VC-funded firms have limited the utility of the government program that helps jump-start small company research. The Senate bill would allow no more than 18% of National Institutes of Health SBIR funds to go to firms that are majority owned by venture capitalists
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