Wednesday, June 23, 2010

$1m, 3.5 years, 7 jobs

The SBTC is looking to make the case in support of investment in small R&D businesses as a means for driving innovation and creating high-quality sustainable jobs. Here's the rundown on my firm:

  • April 2008: Unemployed PhD attends SBDC seminar on starting a Technology Business; First knowledge of SBIR.
  • May 2008: Company founded.
  • June 2008: First SBIR proposal submitted.
  • August 2008: DoD SBIR Phase I awarded ($80k).
  • June 2009: DoD Phase I Option exercised ($70k); part-time assistant hired.
  • October 2009: Moved to larger office; second part-time employee hired (Master's degree).
  • February 2010: Second DoD SBIR Phase I award ($70k).
  • March 2010: DoD SBIR Phase II awarded ($750k); two full-time researchers hired (one PhD).
  • May 2010: third part-time employee hired.
  • [August 2010]: anticipated start date for fourth full-time employee (PhD).

Summary: Government R&D contracts awarded to one start-up firm in the amount of $970,000 has translated to the creation of 7 jobs (three PhDs, one Master's). Do the math*: that's less than $40,000 of government investment per job per year of the contracts, or less than $57,500 per FTE!

* $970,000/3.5 years/7 jobs; $970,000/3.5 years/4.825 FTE.

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