Government & Multilateral

What this is: U.S. and allied public programs—grants, OTAs, milestone contracts, and payment models—that fund R&D, pilots, and sometimes production. When to use: Deep‑tech, health, dual‑use; when technical risk is high and commercial payers aren't ready. When to avoid: If long review cycles or compliance would block critical speed.

Tools & Structures

Program / Mechanism	Type	Agencies (examples)	Stage / purpose	Typical size	Notes / pathway
SBIR/STTR Phase I	Grant/Contract	NIH, NSF, DoD, DOE	Feasibility/R&D	$50k–$275k	Non‑dilutive; reporting; topic fit
SBIR/STTR Phase II	Grant/Contract	NIH, DoD, etc.	Prototype/validation	$750k–$2M+	Milestone‑based; sets up sole‑source path
Fast‑Track / Direct to II	Streamlined SBIR	NIH/NSF/DoD	Compress I→II	Varies	Faster cycles; align with end‑user; pairs with TACFI/STRATFI
STRATFI/TACFI	Matching contract	USAF/USSF	Bridge proven Phase II to scaling	Up to ~$15M+	Non‑dilutive; requires cost‑share and customer champion
NIH Phase IIB / CRP	Grant	NIH	Commercialization bridge post‑SBIR II	Up to ~$3M	Funds late translational work; non‑dilutive
OTA Prototype → Production	Mechanism	DoD, HHS, NASA	Faster prototyping with follow‑on production	Varies	Flexible IP/data rights; negotiate deliverables
CMS / CMMI Models	Payment Model	HHS (CMS)	Reimbursement pilots & shared‑savings models	Varies	Heavy data/reporting; path to national coverage

Key levers: Topic/end‑user fit, speed vs oversight, cost‑share, IP/data clauses, path to procurement/reimbursement.

Case studies: Capella Space (SBIR), Zipline (service contracts), Eko Health (NIH SBIR), Digital Diagnostics (NIH/DoD grants).

Related: See also Non‑dilutive / Philanthropic for foundation grants, and Capital from Customers for government contracts.

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