Planting the ‘seed’ of entrepreneurial innovation

Continuous Composites — A ‘Seed Fund’ success!

From inspiration to commercialization, a local company has found success in the 3D Printing industry with its revolutionary method of composite manufacturing. Under the leadership of CEO Tyler Alvarado, Continuous Composites uses CF3D to combine “high-performing composite materials with rapid curing thermoset resins to create complex parts on demand.” This cutting-edge Idaho firm secured federal funding to continue its innovative efforts in this emerging industry. (Continuous Composites)

Located in downtown Coeur d’Alene, Continuous Composites continues to produce creative ideas for expanding capabilities. Initially, the company to pursued a federal grant through America’s Seed Fund, also known as the Small Business Innovation and Research (SBIR) program. With Application Engineer John Brendel spearheading the efforts, Continuous Composites was awarded a NASA SBIR award for his design of a low CTE open isogrid composite; a structure that can only be crafted with CF3D. Previously, the company received a ‘Direct to Phase II’ SBIR award from the USAF, valued at more than $740,000 for continued research and development of CF3D.

Is America’s ‘Seed Fund’ program right for your business?

This important federally-funded program offers “seed” capital for innovation and research in a non-dilutive format. What is meant by non-dilutive? It means the money is offered with no catch, no repayment, and no investors taking ownership rights. The U.S. government is seeking to fund the newest and most innovative ideas our businesses and entrepreneurs can produce. With three phases of funding and an ability to be awarded up to $2 million, America’s Seed Fund could be what gets your ground-breaking idea to market and makes the federal government your No. 1 buyer. The Seed Fund is NOT instant money and DOES require the ability to ‘pitch’ your concept. Proposing a plan for marketing and sales of the innovation provides evidence the technology will be desired.

*Originally named the Small Business Innovation and Research (SBIR) program, it was established in 1982 and seeks to:

• Stimulate technological innovation

• Use small businesses to meet Federal Research/Research &Development needs

• Foster and encourage participation by the socially and economically disadvantaged small businesses and those that are 51 percent owned and controlled by women, in technological innovation

• Increase private sector commercialization of innovations derived from Federal R/R&D, thereby increasing competition, productivity, and economic growth

• Require evaluation of commercial potential in Phase I and Phase II applications

• Be viewed as seed capital for early-stage R&D with commercial potential

The awards are comparable in size to angel investments in the private sector and indicate the acceptance of greater risk in support of agency missions.

Am I ready to pursue seed funding?

To succeed in the SBIR program, there are several prerequisites:

First, you must have a burning desire to conduct innovative research and development, AND

Second, a desire to develop a viable product that you want to bring to the marketplace. Just wanting to do research is insufficient — you must want to see that research commercialized or turned into a useful product that you and your firm will promote either directly or through a variety of commercialization strategies.

If you can match your interests and talents with the specific needs of a Federal Agency you may be able to secure funding to conduct research and development with no strings attached.

What are the phases of the program?

The SBIR program has three Phases. Following the submission of proposals, Agencies make awards based on small business qualification, degree of innovation, technical merit, and future market potential. Small businesses that receive awards then begin a three-phase program.

• Phase I is the concept phase. It lasts six to twelve months and supports the exploration of the technical merit or feasibility of an idea or technology.

• Phase II awards may last for up to two years and expand upon the Phase I results. During this time, the R&D work is performed.

• Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. No SBIR funds support this phase. The small business must find funding in the private sector or secure it from other non-SBIR Federal Agency funds that can fund continued development

The emphasis on innovation is important and implies that you are proposing a novel approach to pressing problems or needs identified by a Federal Agency. The approach proposed should be unproven and involve an element of technical risk. You must clearly identify the innovation in your proposal. Do not leave the recognition of your innovation to the imagination of the reviewers.

Innovation that meets the mission

One idea becomes reality, then leads to another, and another. “We are melding the world of composite manufacturing and 3D printing. Our first product, the CF3D Enterprise™ is ultimately changing the game when it comes to the design and production of composites” says Hannah Flint, Brand Manager for Continuous Composites. This technology is of interest to federal agencies seeking a low-cost option for procuring lightweight, heat-resistant aerospace parts that may have unique geometries or applications.

In discussing the complexities of preparing an SBIR proposal, John stated “I followed the (agency) solicitation document, which provided instructions for writing and submitting our proposal, specifically to meet their requirements.” Following the exact instructions and clearly stating how the innovation of Continuous Composites meets the agency’s current needs is fundamental to a successful submission. “SBIR solicitations provide a great opportunity to discuss what we can do and publicly share with other industries our capabilities, which ultimately meet a federal agency need and grows our customer base.”

The North Idaho College’s Small Business Development Center helps small businesses thrive and achieve maximum potential in all economic situations. With no-cost coaching, seminars, and webinars you can take your business to the next level. For more information about the SBIR program, contact North Idaho Small Business Development Center at 208-665-5085 or NISBDC.com.

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Beth Freeman is the NISBDC PTAC counselor.