Every startup is looking for funding at one point or another. Whether you’re a bootstrapping company that’s in need of some capital or a unicorn that’s looking to expand its reach, there’s no such thing as too much funding. And while many founders look to angel groups and venture capital firms to fill their monetary needs, federal funding options are plentiful in the land of the free. We reached out to a number of budding founders and successful CEOs that have knowledge and took advantage of the many federal startup funding options available in the country. Check out what they had to say about getting money for your startup from Uncle Sam. Robert Mander, founder of Govlish: Nick Braun, founder of PetInsuranceQuotes.com: “Minus a background similar to mine, my first suggestion for any startup is to contact the SBA and find a good mentor in the Service Corps of Retired Executives (SCORE) program. SCORE has offices nationwide, and they can be found at the SBA and SCORE web sites. There is no charge for SCORE services, so it’s a good place to start.” Sonny Kirkley, CEO of Wisdom Tools: “The reason angels and VCs are so successful is that they are the new bankers. They actually underwrite deals and provide risk capital for a fair return. Banks are still living in the 80’s and 90’s and entrepreneurs are still thriving. Money is fluid and smart individuals will lend to small businesses directly for high interest rates instead of sitting their money in a savings account or CD that yields 0.3 percent to 1.5 pecent. The world is changing and unfortunately federally backed SBA lenders haven’t.” David Zaretsky, founder and CEO of Snips Media: “Awards range from $150,000 for an initial Phase I to over $1 million for the Phase II follow-on. Some biotech awards have been over $6 million. In addition to the federal funds, several states will also provide funds to supplement the grantee to help move the product to commercialization.” Paul Dillon, CFO of HyGen, who received $5.3 million from the California Energy Commission to build clean renewable hydrogen fueling stations: “To be successful in obtaining SBIR or STTR grants, some skills are necessary in research, grant writing, business development, and having a successful team that can execute well. Teaming up with research teams at local universities can also be a great advantage. But be mindful about some of the restrictions that are tied to SBIR and STTR — for example, ITAR restrictions may prevent you from exporting to certain countries, or certain work products developed under the contract may not be patented.” Photo: Flickr / frankieleon “CEC funding has allowed HyGen to established its clean renewable hydrogen brand. This solid base enables the company to reach out to impact investors looking to place capital in businesses that will make a positive difference to our world.”
