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.
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.”
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).