Expert advice: Should your Houston startup apply for this lesser known SBIR grant?

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In the last few years, the National Oceanic and Atmospheric Administration has devoted $10 million to $15 million annually to small businesses in the form of SBIR grants. Photo via Getty Images

Inside the Department of Commerce is a relatively small federal agency, compared to the others, call the National Oceanic and Atmospheric Administration. They too have a small business innovation research (or SBIR) program in which technology startups can have access to funds to de-risk their innovation.

Here’s what you need to know about this non-dilutive funding opportunity:

Overview of NOAA’s SBIR Program

Although the SBIR program has been around for over forty years, NOAA entered the scene in 2010 when their research and development budget reached over $100 million. Per the federal statue, they joined a host of federal agencies that were to devote 3.2 percent of that budget to small businesses.

In the last few years, NOAA has devoted $10 to $15 million annually to small businesses in the form of SBIR grants. These Phase I awards have reached $175,000 in funding for a six-month feasibility study. Follow-on Phase II awards can reach up to $650,000 for 24 months of R&D. Each year’s solicitation is generally announced near the end of the calendar year with deadlines ranging from December to March. While not exactly cyclical, anticipating these deadlines allows a company to set aside enough to prepare a proper application.

What is NOAA Looking For?

According to the NOAA’s website, “NOAA is an agency that enriches life through science. Our reach goes from the surface of the sun to the depths of the ocean floor as we work to keep the public informed of the changing environment around them.“ Their SBIR research topics have stayed consistent since 2011 with minor general topic changes. These six topics have been the same for the last two funding cycles:

  • 9.1 Extreme Events and Cascading Hazards
  • 9.2 Coastal Resilience
  • 9.3 The Changing Ocean
  • 9.4 Water Availability, Quality, and Risk
  • 9.5 Effects of Space Weather
  • 9.6 Monitoring and Modeling for Climate Change Mitigation

When analyzing past winners, which you can find online, a clear emphasis is placed on developing advanced tools for data collection, analysis, and prediction, particularly in the areas of weather forecasting, oceanic observation, and ecosystem health. Many projects involve AI and machine learning for processing large datasets to improve decision-making in disaster response, fishery management, and habitat conservation.

The recurring theme of scalability, real-time data applications, and cost-effective, sustainable solutions shows NOAA's interest in technologies that not only address immediate environmental challenges but also have broader implications for global climate and ecosystem management. Additionally, NOAA seems to value partnerships that leverage cross-disciplinary expertise, integrating cutting-edge science with practical applications.

Their grading criteria also give you some early insight into what they are interested in receiving:

  1. The scientific merit and technical approach of the proposed research (40 points)
  2. The level of innovation the proposed effort offers to the research topic area (20 points)
  3. Consideration of an application’s commercial and societal impacts and potential applications (20 points)
  4. Qualifications of the proposed principal/key investigators, supporting staff, and consultants and availability of instrumentation and physical facilities necessary to complete the proposed work (20 points)

How to Apply

Because of the previous trends, we anticipate NOAA will publish a similar list of research topics along the same lines as the last few years within the next several months. With a deadline being between December and March, it’s in your best interest to begin preparing your application now. Here are the first three early steps I’d recommend for you to get a headstart:

  • Check your eligibility
    • You must be a for-profit organization.
    • You must have fewer than 500 employees
    • You must be primarily owned by a U.S. citizen or permanent resident
    • You must not be majority owned by venture capital or private equity
  • Complete your registrations
    • System for Award Management (SAM) — registration can take over a month and must be renewed on an annual basis.
    • Small Business Association SBA — registration can take up to 90 days.
    • Grants.gov — registration typically takes between three to 10 business days.
  • Start writing your first sections
    • Develop your abstract and specific aims. If possible, schedule a meeting with a program manager from NOAA to review and provide early feedback on these early sections.

Don’t Forget About Asking for Help

Practice regular and open communication with NOAA and their SBIR program managers. Ask questions early and often to make sure you have the best chance of receiving positive feedback when you finally submit your application. I’d encourage you to find previous NOAA SBIR reviewers to do a preliminary review before your submission. Since these solicitations only come around once a year, it’s worth the time and effort to polish your application to the highest degree. If you’re worried about the time commitment of writing a 15 page application for funding, find a local grant writer (or grant writing firm) to help with application and submission process.

Finally, good luck to all you NOAA applications as you innovate in such a way to make the world a better place.

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Robert Wegner is the director of business development for Baginski Wegner and Company (BW&CO).

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The potential SBIR rewards far outweigh the challenges, and with determination, your startup could be the next success story. Photo via Getty Images

Expert: Demystifying SBIR grants for Houston startups

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Grants are everywhere, all the time, but often seem unobtainable for startups. Most companies tell me about their competitors winning grants but don’t know how to secure non-dilutive funding for themselves. It’s true that the SBIR program is competitive — with only 10 to 15 percent of applicants receiving awards — but with a little guidance and perseverance, they are most definitely obtainable.

An SBIR overview

The Small Business Innovation Research program was introduced on the federal level in 1982 with the purpose of de-risking early technologies. While most investors are hesitant to invest in a company that’s still in ideation, the SBIR program would provide an initial level of feasibility funding to develop a prototype. The program issues funds to companies without taking any equity, IP, or asking for the money back.

Since its inception, the SBIR program has funded over 200,000 projects through 11 different federal agencies, including, but not limited to, the Department of Defense, the National Institute of Health, and the National Science Foundation. Federal agencies with R&D budgets over $100 million dedicate at least 3.2 percent of their budget to the SBIR program to fund research initiated by small businesses.

Eligibility and application process

It is no surprise that only small businesses can apply for this non-dilutive funding. For SBIR purposes, a small business is defined as being a for-profit entity, smaller than 500 employees, 51 percent owned by US citizens or permanent residents, and not primarily owned by venture capital groups. This small business must also have the rights to the IP that needs de-risking.

To apply, the small business must have a specific project that needs funding. Normally, this project will have three specific aims that detail the action items that will be attempted during the funded period. Some agencies require a pre-application, like a letter of intent (DOE) or a project pitch (NSF). Others don’t have a screening process and you can simply submit a full application at the deadline. Most agencies published examples of funded or denied applications for you to review.

SBIR phases

Phase I of the SBIR program is the normal entry point for every agency. It takes your product from ideation, through a feasibility study, to having a prototype. While agencies provide various funding amounts, the range is between $75,000 to $300,000 for 3 to 12 months of R&D activities. Applications contain a feasibility research plan (around six pages), an abstract, specific aims, supporting documents, and a budget.

While some programs allow for Direct to Phase II (D2P2) applications, most don’t apply for Phase II until they have secured Phase I funding. This second phase allows companies with completed feasibility studies to test their new prototype at a larger scale. The budgets for this phase range from $600,000 to $3 million and span an average of two years. The research plan is twice as robust and a commercialization plan is also needed.

Tips for success

If you’re wondering if your technology would be a good fit for a certain program, you can start by looking at the SBIR website to see the previously funded projects. The more recent projects will give you an idea of the funding priorities for each agency. Most abstracts will allude to the specific aims, meaning you can get a sense of the research projects that were approved. If you regularly see an agency funding projects similar to yours, you can search sbir.gov/topics for that agency’s research topics and upcoming deadlines.

Your team is one of the most important aspects of the application. Since you will be reviewed by academic experts, it’s helpful to have a principal investigator on your project that has a history of experience or publications with similar technology. Keep in mind that this principal investigator must be primarily employed by your company at the time of the grant. If this individual is employed by a university or nonprofit research organization, consider taking the STTR route so you can utilize their expertise.

Preparing Phase I applications should take no less than eight weeks, and Phase II should take at least ten. Your first step should be read the entire solicitation and create action items. The early action items should be

  1. Completing government registrations, like SAM.gov
  2. Writing your abstract and specific aims
  3. Contacting the program manager or director for early feedback

Any bids, estimates, or letters of support may also take time to receive, so don’t delay pursuing these items.

Don’t stop trying

If you speak to any program officer, they will encourage you to keep applying. For resubmissions, you will have a chance to explain why your previous application was denied and what you’ve done to improve. Most companies receive funding on the resubmission. If you get the feeling that a specific agency isn’t the right fit, reach out to other agencies that may be interested in the technology. You may realize that a small pivot may open up better opportunities.

There are frequently published webinars from different agencies that will give overviews of the specific solicitations and allow for Q&A. If you feel stuck or are still concerned about getting started, reach out to an individual or group that can provide guidance. There are plenty of grant writers, some of which have reviewed for the SBIR program for different agencies, who can provide strategy, guidance, reviews, and writing services to provide different levels of help.

Securing SBIR funding can be a game-changer for startups. While the process may seem daunting at first, with the right approach and persistence, it’s very obtainable. Remember, each application is a learning experience, and every iteration brings you closer to success. Whether you seek support from webinars, program officers, or professional grant writers, the key is to keep pushing forward. The potential rewards far outweigh the challenges, and with determination, your startup could be the next SBIR success story.

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Robert Wegner is the director of business development for Euroleader.

Houston-area Ad Astra Rocket Company, which is working on a technology that could increase the speed of space travel, received fresh funding from NASA. Photo via NASA.gov

NASA doles out $98M in funding to small business innovators, including 6 Texas firms

grants lifting off

Almost 100 small businesses with aerospace technology received the greenlight from NASA on their proposals for grant funding.

NASA approved 112 proposals from 92 small businesses in April. These businesses will receive a slice of the $98 million Phase II funding from the Small Business Innovation Research program. The early-stage $850,000 SBIR grants allow awardees to build on their success from the program's first phase. The firms will have 24 months to execute on their proposals with the fresh funding.

“These Phase II awards support a breadth of technologies that have the potential to be transformational for so many different projects and missions across NASA,” says Jenn Gustetic, director of early stage innovation and partnerships for NASA's Space Technology Mission Directorate, in a news release. “In addition, it’s important that we’re including the innovative potential of all of America’s small businesses and entrepreneurs, so we’re proud that 28% of these awards are to underrepresented small businesses and 31% are to first time SBIR Phase II awardees."

Six of the award recipients are based in Texas. Here are the companies and their proposal technology:

  • Ad Astra Rocket Company, headquartered in Webster: Improved Thermo-Mechanical Design of the VASIMR RF Coupler
  • Lunar Resources Inc., headquartered in Houston: Ultra-Electrical-Efficient Process to Perform Regolith Additive Manufacturing of Complex Structures
  • Lynntech Inc., headquartered in College Station: Miniaturized Reagent Regenerative Ion Analyzer for Elemental Analysis
  • QED Secure Solutions, headquartered in Coppell: Avionics Intrusion Detection and Attack Identification
  • Stone Aerospace Inc., headquartered in Del Valle: Sediment Sequestration for Hot Water Drilling Cryobots
  • Texas Research Institute Austin Inc., headquartered in Austin: Accelerated Creep Test Methodologies for Space Habitat Softgood Structural Materials

The Ad Astra Rocket Company's technology, the Variable Specific Impulse Magnetoplasma Rocket, or VASIMR, is an electrothermal thruster that, once developed using the grant, would allow for faster space travel.

“Our program has the responsibility of supporting ideas and technologies that will have impact on NASA’s work and have strong commercial potential,” says Jason L. Kessler, program executive for NASA's SBIR and Small Business Technology Transfer program, in the release. “We're always excited when we can find technologies that help our agency's missions while also having direct benefits for all."

NASA's SBIR program, which takes no equity, offers up to $1 million to selected business during the first three years. Post Phase II opportunities include up to nearly $3 million in funding. The program is a part of NASA's Space Technology Mission Directorate and managed by NASA’s Ames Research Center in California's Silicon Valley.

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5+ must-know application deadlines for Houston innovators

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Editor's note: As 2026 ramps up, the Houston innovation scene is looking for the latest groups of innovative startups that'll make an impact. A number of accelerators and competitions have opened applications. Read below to see which might be a good fit for you or your venture. And take careful note of the deadlines. Please note: this article may be updated to include additional information and programs.

Did we miss an accelerator or competition accepting applications? Email innoeditor@innovationmap.com for editorial consideration.

2026 HCC Business Plan Competition

Deadline: Jan. 26

Details: HCC’s annual Business Plan Competition (BPC) is an opportunity for proposed, startup and existing entrepreneurs to develop focused plans to start or grow their businesses. Accepted teams will be announced and training will begin in late February and run through early June, with six free, three-hour training sessions. Advising will be provided to each accepted team. Applicants can apply as a team of up to five persons. Finalists will present to to gudges on May 27, 2026. Last year, $26,000 was awarded in seed money to the top five teams. In-kind prizes were also awarded to all graduating teams including free products, services and memberships, with an estimated in-kind value totaling $147,000. Find more information here.

University of Houston Technology Bridge Innov8 Hub (Spring 2026)

Deadline: Jan . 30

Details: UHTB Innov8 Hub’s immersive, 12-week startup acceleration program designed to help early-stage founders launch and scale their technology startups. Selected participants will gain access to expert mentors and advisors, collaborate with a cohort of peers, and compete for cash prizes during our final pitch event. The cohort begins Feb. 16, 2026. The program culminates in Pitch Day, where participants present their ventures to an audience of investors and partners from across the UH innovation ecosystem. Find more information here.

Rice Business Plan Competition 2026

Deadline: Jan. 31

Details: The Rice Business Plan Competition, hosted by the Rice Alliance for Technology and Entrepreneurship, gives collegiate entrepreneurs real-world experience to pitch their startups, enhance their business strategy and learn what it takes to launch a successful company. Forty-two teams will compete for more than $1 million in cash, investments and prizes on April 9-11, 2026. Find more information here.

Rice Veterans Business Battle 2026

Deadline: Jan. 31

Details: The Rice Veterans Business Battle is one of the nation’s largest pitch competitions for veteran-led startups, providing founders with mentorship, exposure to investors and the opportunity to compete for non-dilutive cash prizes. The event has led to more than $10 million of investments since it began in 2015. Teams will compete April 8-9, 2026. Find more information here.

TEX-E Fellows Application 2026-2027

Deadline: Feb. 10

Details: The TEX‑E Fellowship is a hands-on program designed for students interested in energy, climate, and entrepreneurship across Texas. It connects participants with industry mentors, startup founders, investors and academic leaders while providing practical, "real-world" experience in customer discovery, business modeling, and energy-transition innovation. Fellows gain access to workshops, real-world projects, and a statewide network shaping the future of energy and climate solutions. Participants must be a student at PVAMU, UH, UT Austin, Rice University, MIT or Texas A&M. Find more information here.

Greentown Go Make 2026

Deadline: March 10

Details: Greentown Go Make 2026 is an open-innovation program with Shell and Technip Energies. The six-month program is advancing industrial decarbonization by accelerating catalytic innovations. Selected startups will gain access to a structured platform to engage leadership from Shell and Technip Energies and explore potential partnership outcomes, including pilots and demonstrations. They’ll also receive networking opportunities, partnership-focused programming, and marketing visibility throughout the program. The cohort will be selected in May. Find more information here.

Houston startups closed $1.75 billion in 2025 VC funding, says report

by the numbers

Going against national trends, Houston-area startups raised 7 percent less venture capital last year than they did in 2024, according to the new PitchBook-NVCA Venture Monitor report.

The report shows local startups collected $1.75 billion in venture capital in 2025, down from $1.89 billion the previous year.

Houston-based geothermal energy company Fervo Energy received a big chunk of the region’s VC funding last year. Altogether, the startup snagged $562 million in investments, as well as a $60 million extension of an existing loan and $45.6 million in debt financing. The bulk of the 2025 haul was a $462 million Series E round.

In the fourth quarter of last year, Houston-area VC funding totaled $627.68 million. That was a 22 percent drop from $765.03 million during the same period in 2024. Still, the Q4 total was the biggest quarterly total in 2025.

Across the country, startups picked up $339.4 trillion in VC funding last year, a 59 percent increase from $213.2 trillion in 2024, according to the report. Over the last 10 years, only the VC total in 2021 ($358.2 trillion) surpassed the total from 2025.

Nationwide, startups in the artificial intelligence and machine learning sector accounted for the biggest share of VC funding (65.4 percent) in 2025, followed by software-as-a-service (SaaS), big data, manufacturing, life sciences and healthtech, according to the report.

“Despite an overall lack of new fundraising and a liquidity market that did not shape up as hoped in 2025, deal activity has begun a phase of regrowth, with deal count estimates showing increases at each stage, and deal value, though concentrated in a small number of deals, falling just [8 percent] short of the 2021 figure,” the report reads.

Sandbox VR brings new gaming center to Houston's tech-savvy population

Get In The Game

Sandbox VR, a futuristic, full-body virtual reality gaming experience, has announced it will enter the Houston market this month, opening its first local gaming center on January 23.

"Houston's reputation as a hub for innovation and technology makes it a perfect fit for Sandbox VR," said Steve Zhao, CEO and founder of Sandbox VR, in a statement. "The city's diverse, tech-savvy population and strong entertainment culture create an ideal environment for our immersive VR experiences. LOL Entertainment continues to exceed our expectations as a partner, and we're excited to bring our cutting-edge virtual reality gaming to Texas's largest city."

The new gaming center opens Friday, January 23 at 797 Sorella Court in CityCentre.

One of the games that stands out is the Stranger Things: Catalyst game, based on the blockbuster Netflix television series. Groups of one to six players will be dropped into the sinister Hawkins Lab and the mysterious Upside Down to fight Demogorgons and other monsters. The game features Matthew Modine reprising his role as Dr. Martin "Papa" Brenner, who imbues players with psychic powers.

Other games include the supernatural pirate title The Curse of Davy Jones and other Netflix tie-ins based on Zack Snyder's Rebel Moon and Squid Game. Sandbox VR offers fully-immersive group play activities that range from combat to puzzle solving for a variety of age groups.

The opening of Sandbox VR is another part of the expansion of LOL Entertainment, who touts itself as one of the pre-eminent hosts of immersive and gaming experiences in the U.S. Sandbox VR will be their first entry into the Houston market, with another immersive group adventure game, Time Mission, set to open at the the Marq'E Entertainment District later this year.

“Bringing Sandbox VR to CityCentre Houston is a big milestone for LOL Entertainment, for Sandbox VR, and for this market,” said Rob Cooper, CEO of LOL Entertainment. “Houston is a fast-growing, experience-driven city, and we’re excited to give locals and visitors a truly immersive, social gaming destination that you can’t replicate anywhere.”

Presale tickets for the grand opening of Sandbox VR are available here. Standard pricing is $55-$65 per event, but Sandbox VR is running a special for 30 percent off with code OPEN30 for those who purchase before Thursday, January 22. Presale buyers are also entered into a drawing for free Sandbox VR for one year.

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This article originally appeared on CultureMap.com.

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