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The Momentum Phase is where your startup transitions from promising R&D to real-world federal impact. You’ve proven feasibility in SBIR Phase I and built a working prototype in Phase II—now it’s time to bridge the gap to Phase III and beyond.
What Is the Valley of Death?
In the federal space, the “Valley of Death” refers to the funding and adoption gap between early-stage innovation (SBIR Phases I & II) and full-scale procurement. Many startups stall here—not because their tech doesn’t work, but because they lack the strategy, relationships, or contracting vehicles to transition.🧭 What Momentum Looks Like in the Federal Market
Phase III Planning- You’re actively identifying transition partners and acquisition pathways. Whether through direct-to-Phase III awards, OTAs, or sole-source justifications, you’re mapping how your tech can be bought—at scale.
End-User Validation- You’ve secured strong endorsements from federal users. Letters of support, pilot results, and mission alignment are helping you build a case for broader adoption.
Contracting Conversations- You’re engaging with program managers, PEOs, and contracting officers—not just to showcase your tech, but to co-develop a path to procurement.
Compliance & Infrastructure- You’re investing in the infrastructure needed to scale: CMMC readiness, cleared facilities, export controls, and federal accounting systems.
Momentum Signals- you’re seeing repeat interest across agencies or commands. Your tech is being discussed in acquisition planning, not just innovation showcases.📈 Why It MattersCrossing the Valley of Death is the difference between a funded experiment and a funded program.
The Momentum Phase is where your startup proves it can transition, scale, and deliver—not just innovate.
TACFI/STRATFI
TACFI and STRATFI are both programs designed to help companies cross over the valley of death. They fund through a match system, requiring all applicants to have third-party partner buy-in. The match could come from direct Gov non-SBIR investment, from a phase 3 contract, or from a VC investment, or a few other options.
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UFRs
UFR, or unfunded request refers to a project that is identified as a necessary project but lacks allocated funds in the current budget cycle. These requirements may arise from emerging threats, the need for equipment upgrades, or other unforeseen circumstances
Army SBIR Catalyst
Businesses can leverage Army SBIR CATALYST enhancement funds following the initial award — or the matching investment for Sequential Phase II Enhancement selects—for their Phase II projects worth up to $7 million in SBIR capital if the business can bring $3.5 million in integrator matching funds AND up to $3.5 million from their Army transition partners.
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Fallout Money
“Fall-out Money” also known as “use it or lose it” funds, refers to unspent budget allocations at the end of the fiscal year. These funds can become available when other projects come under budget, are behind schedule or are canceled, allowing the reallocation of the surplus to other areas.
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APFIT
Accelerate the Procurement and Fielding of Innovative Technologies (APFIT) is intended to be a resource to help innovative technologies pass over the infamous valley of death. It is similar to TACFI/STRATFI or Army SBIR CATALYST; however, where TACFI STRATFI & CATALYST are all SBIR programs with R&D funding, APFIT is Procurement funding.
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