Melissa DeRosier, CEO of 3-C Institute for Social Development and 3-C Family Services of Cary, says her company's start-up was inspired by a desire to move research out of academia and into the marketplace. “Someone (at UNC-CH) mentioned the SBIR program, and I just started writing. I started the company from my attic equipped with an SBIR award and a subcontract from Wake County.” 3C is unique in its industry in that its start-up was partially funded by SBIR.

“My Phase I SBIR award provided funding that allowed us to complete an important pilot study,” says Dr. Todd Steck, former academician and founder of BioTrackers, Inc. His UNC Charlotte spin-off was awarded a Phase I SBIR grant for $70,000 from the US Environmental Protection Agency to test its sewer line leak detector technology. This was the first SBIR award for the start-up company. “The Phase 1 SBIR provides critical early funding. Results from the study will allow us to determine the range of commercial uses for our microbe tracking method and allow us to secure additional funding.”

“We were fortunate to receive Phase I funding for our early research,” informs serial entrepreneur Dr. Stephen Friedman, president and CSO of Syntherica. “The Phase I allowed us to obtain good test data and results in a low-cost lab before having to commit to more elaborate facilities.” Prior to Syntherica, Dr. Friedman founded Ensys Inc. and helped take that company public in 1995. Of his many credentials, Dr. Friedman is the co-developer of the original home pregnancy test.

Upon receipt of the first Phase 2 award, Dr. DeRosier felt financially stable enough to establish an office and hire employees. “The second Phase II allowed the stability to move to a larger office and increase employment to 12,” recalls DeRosier.

The 3-C companies continue to grow rapidly. 3-C Institute recently hired a director of business development to establish corporate contacts and pursue commercialization of its SBIR-funded products. “The key to continued SBIR funding is commercialization,” says DeRosier.

“Venture capital funding starts a clock,” says serial entrepreneur Dr. Stephen Friedman, President and CSO of Syntherica. “Venture capitalists (VCs) expect their return on investment in a certain period of time, usually less than five years. Many companies lose sight of the fact that when the clock times out, VCs and business will be at odds. An R&D company needs to build value through SBIR grants and start the clock later to delay the transition from R&D to commercialization.” In addition, Friedman “found the SBIR process can free the young company to think about the business applications. It helps focus the company before you turn to VCs.”

BioResource International has secured seed funding from private investors. “We have also entered into discussions with various potential partners and end-users,” notes Dr. Giles Shih, co-founder of BioResource International in Raleigh. The company recently won a Phase II SBIR award from the US Department of Agriculture. BioResource currently employs a staff of five scientists from its labs at NCSU’s Centennial Campus in Raleigh.

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