# The Phases of SBIR & STTR: From Feasibility to Commercialization

**Canonical URL:** https://www.vistatechwerx.com/all-blogs/vtw-blog-november-06-2024  
**Published:** November 6, 2024  
**Last updated (companion):** 2025-08-15

## Summary
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs provide a phased roadmap for small businesses to take innovations from concept to commercialization. These phases reduce risk and increase the likelihood of bringing viable solutions to market.

## Program Phases

### Phase I: Feasibility & Proof of Concept
- Funding: Up to $150,000 for six months.  
- Goal: Prove the technical feasibility of the proposed solution.

### Phase II: Full Research & Development
- Funding: Up to $2 million over two years.  
- Goal: Scale R&D to develop a fully functional product.

### Phase III: Commercialization
- Funding: No direct SBIR/STTR funds; opportunities for non-competitive follow-on contracts.  
- Goal: Bring the product to market and secure ongoing revenue.

## Why This Phased Approach Works
- Minimizes risk for both the business and the federal government.  
- Ensures only feasible ideas receive larger investments.  
- Provides a structured path from feasibility to commercialization.

## Impact
SBIR and STTR offer small businesses a clear, progressive framework to turn groundbreaking ideas into market-ready solutions. This process supports innovation, job creation, and competitive advantage in federal contracting and beyond.

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