traction

The Traction Phase for tech startups targeting the U.S. federal government—especially through SBIR Phase I and II—is about proving that your innovation can meet mission needs, scale across agencies, and transition into long-term contracts.


What Traction Means at the SBIR Stage

  • Phase I: Proof of Feasibility - You’ve secured a Phase I award and demonstrated that your technology addresses a real federal challenge. Traction here means strong technical results, enthusiastic feedback from agency stakeholders, and early signs of transition potential.
  • Phase II: Prototype & Pilot- You’re building and testing a working prototype. Traction in Phase II includes successful pilot deployments, letters of support from end users, and alignment with acquisition pathways like Phase III, OTAs, or IDIQs.
  • Agency Engagement- You’re not just delivering reports—you’re building relationships. You’re engaging with program managers, contracting officers, and end users to shape future requirements and identify transition champions.
  • Compliance & Readiness- You’re investing in cybersecurity (e.g., CMMC), export controls, and federal procurement readiness. These are essential for scaling beyond SBIR and into production contracts.
  • Demand Signals- Multiple agencies or offices are expressing interest. You’re seeing traction not just in technical merit, but in mission relevance and procurement viability.

Why It Matters


The traction phase is where your startup proves it can move from R&D to real-world impact.
It’s the bridge between innovation and implementation—where you show that your tech isn’t just promising, it’s procureable.

Opportunitites

Phase I

The objective of Phase I, as determined by SBIR.gov, is to “establish the technical merit, feasibility, and commercial potential of the proposed R/R&D efforts and to determine the quality of performance of the small business awardee organization prior to providing further federal support in Phase II.”

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Phase II

For most companies, the step after an SBIR/STTR Phase I, on the path toward a Phase III would be a Phase II. SBIR.gov identifies the objective of Phase II as “to continue the R/R&D efforts initiated in Phase I. Funding is based on the results achieved in Phase I and the scientific and technical merit and commercial potential of the project proposed in Phase I.”

In some cases, a technology or concept is further along in the development process, making a Phase I an unnecessary first step. In these cases, a company may pursue a Direct-to-Phase II (D2P2).

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