Questions & answers

NASA & Space Technology funding — every question, answered.

The questions founders actually search and ask AI assistants, with the key number up front. Verify amounts and dates on the official source before you rely on them.

Quick facts

The numbers founders ask for

  • NASA SBIR Phase I: ~$150K (up to ~$225K-$275K by appendix) for a ~6-month feasibility study; no cost share, non-dilutive.
  • NASA SBIR Phase II: up to ~$850K over 24 months, with supplemental funding possible on top.
  • NASA STTR requires a research-institution partner: small business does >=40% of work, institution does >=30%.
  • NASA Tipping Point awards: ~$1M-$20M each, fixed-price milestone-based funded Space Act Agreements.
  • Tipping Point cost share: >=25% of total value (>=10% for companies with 500 or fewer employees).
  • NIAC Phase I: ~$175K for 9 months; Phase II: up to ~$600K for 2 years; Phase III path up to ~$2M.
  • SBIR/STTR eligibility: US small business, <=500 employees, majority US-citizen/resident owned.
  • SBIR Phase III has no dollar limit, no cost share, and can be sole-sourced into a NASA contract.
  • SBIR data rights typically protect your technical data for ~20 years; you keep title to inventions.
  • CubeSat Launch Initiative (CSLI): NASA covers the launch cost of selected CubeSats, no launch fee to the team.
  • CLPS is an IDIQ vehicle (historically up to ~$2.6B) where providers bid individual lunar task orders.
  • NASA moved to a rolling SBIR/STTR BAA (Apr 2026-Sep 2027) with periodic appendices instead of one annual call.
Does NASA take equity in my startup?
No. NASA's core startup programs — SBIR/STTR, NIAC, TechFlights — are non-dilutive: they fund your work without taking ownership. Tipping Point requires a corporate cost share (your own money in), and defense programs like STRATFI/TACFI require matching funds, but none of these are equity investments. Always read the specific solicitation.
I'm not incorporated yet. Can I still pursue NASA funding?
You can start researching and even developing a NIAC concept, but to receive an SBIR/STTR or most contract awards you must be a registered U.S. for-profit small business in SAM.gov and NSPIRES. Registration takes weeks, so incorporate and register early — the paperwork, not the idea, is usually the bottleneck.
What's the difference between a funded and an unfunded Space Act Agreement?
A funded SAA transfers money from NASA to you; an unfunded SAA transfers no money — NASA gives you facilities, test time, software, and engineers in kind, and you pay your own costs. The ACO program uses unfunded SAAs. It's one of the most misunderstood distinctions in NASA partnerships; we cover it in detail in our SAA guide.
Do I have to simulate my hardware before I fly it?
You're not legally required to, but in practice every serious space program simulates first, because launch, thermal-vacuum, and hot-fire failures cost months and millions. Simulation is also how you make a NASA demonstration plan credible to reviewers. It complements physical qualification testing — it doesn't replace it.
Can you get me an Ansys license and engineering help?
We can arrange an Ansys evaluation license, live engineering support, and access to free learning content through a channel partner. Evaluations and any startup-program terms are Ansys programs offered at Ansys's and the partner's sole discretion, and you're always free to use any partner you choose. This site is informational — nothing here is a guarantee or an offer.
Which NASA program should an early hardware team start with?
Usually SBIR/STTR Phase I for feasibility money, or NIAC if your concept is genuinely visionary and years out. Save Tipping Point, InSPA, and defense programs like STRATFI/TACFI for after you have real hardware maturity. Match the program to your stage — our funding map lays out the ladder.
Does NASA take equity in startups it funds?

No. NASA's core startup programs, SBIR, STTR, NIAC, and Tipping Point, are non-dilutive. They are grants, contracts, or funded Space Act Agreements, not equity investments, so NASA never takes a share of your company. You keep 100% ownership. nasa.gov/sbir_sttr

How much does NASA SBIR Phase I pay?

Roughly $150,000, and up to about $225K-$275K depending on the appendix, for a feasibility study of about 6 months. Phase II (development/prototype) runs to roughly $850,000 over 24 months, and some programs add supplemental funding on top. nasa.gov/sbir_sttr

What is the difference between NASA SBIR and STTR?

Both fund small-business R&D non-dilutively at similar dollar levels. The key difference: STTR requires a formal partner research institution (a university or federal lab) that performs at least 30% of the work, and the small business must do at least 40%. SBIR has no institution requirement, and the small business must do at least two-thirds of Phase I work.

How much is a NASA Tipping Point award?

Individual awards typically range from about $1 million to $20 million over roughly two years, structured as fixed-price, milestone-based funded Space Act Agreements. Companies must contribute a cost share of at least 25% (as low as 10% for businesses with 500 or fewer employees). nasa.gov space tech partnerships

Does Tipping Point require cost share?

Yes. Tipping Point uses a public-private cost-share model: your company must fund at least 25% of total project value, dropping to a 10% minimum if you have 500 or fewer employees. This is what distinguishes it from a pure grant, NASA and industry share the cost and the risk.

Is NIAC funding dilutive?

No. NIAC (NASA Innovative Advanced Concepts) is non-dilutive study funding: about $175,000 for a 9-month Phase I and up to $600,000 for a 2-year Phase II, with a Phase III path up to roughly $2M. It funds early, high-risk concepts, no equity involved. nasa.gov/niac

Can a startup get a free rocket launch from NASA?

Essentially yes, through the CubeSat Launch Initiative (CSLI). NASA arranges and pays for the launch of selected small CubeSats as auxiliary payloads or ISS deployments at no launch cost to the team. You build the satellite; NASA handles the ride. CSLI

What is a Space Act Agreement?

A Space Act Agreement (SAA) is a flexible partnership contract NASA uses to work with companies. Funded SAAs come with NASA money (e.g., Tipping Point); unfunded SAAs give you access to NASA facilities, expertise, and test time but no cash; reimbursable SAAs mean you pay NASA for a service. They are not grants and not standard procurement.

What is the difference between a NASA grant and a NASA contract?

A grant funds research where NASA does not direct a specific deliverable for its own use (common for universities and NIAC-style work). A contract (like SBIR or CLPS) buys a specific deliverable or service NASA wants. Contracts carry more deliverable and data-rights obligations; grants are lighter-touch but narrower in scope.

Does NASA own my invention if it funds my SBIR?

No. Under Bayh-Dole and SBIR data-rights rules, you keep title to inventions and retain SBIR data rights (typically 20 years) on technical data developed under the award. NASA gets a government-purpose license to use it, but your commercial IP stays yours, that is the whole point of the program.

What is NASA SBIR Phase III?

Phase III is commercialization, work that derives from, extends, or completes earlier SBIR/STTR effort. It has no SBIR dollar limit and no cost share, and can be funded by NASA or other agencies. Crucially, Phase III can be sole-sourced, giving alumni a direct path to real NASA contracts without recompeting.

Who is eligible for NASA SBIR?

A US-based small business with 500 or fewer employees, majority-owned by US citizens or permanent residents (with limited allowances for VC/PE ownership), operating primarily in the US. The principal investigator's primary employment must be with the company during Phase I. Register in SAM.gov and the SBIR portal first.

How fast can I get NASA funding?

The fastest structured path is SBIR Phase I (about 6 months of work once awarded) or NIAC for idea-stage concepts. From solicitation open to award is typically several months. Tipping Point and CLPS are larger and slower. There is no instant funding, plan proposal timelines around the BAA appendix deadlines.

Can foreign-owned companies get NASA SBIR?

Generally no. SBIR/STTR requires a US small business majority-owned and controlled by US citizens or permanent residents (with narrow VC/hedge-fund ownership provisions). Foreign-owned firms are not eligible, though they can sometimes participate as subcontractors within allowed work percentages.

What is CLPS and how do you win work on it?

Commercial Lunar Payload Services (CLPS) is an IDIQ contract vehicle (a large pool, historically up to ~$2.6B through the late 2020s) for delivering payloads to the Moon. You first compete to become an on-ramp CLPS provider, then bid on individual task orders as NASA issues them.

Is NASA SBIR a grant or a contract?

At NASA, SBIR/STTR awards are contracts (fixed-price), not grants. That matters: you deliver defined milestones, invoice against them, and the award can lead directly into a sole-source Phase III contract, unlike a pure research grant.

What does the SBIR/STTR BAA change for applicants?

NASA moved to a rolling Broad Agency Announcement (released April 2026, valid through Sept 2027) with periodic appendices instead of one big annual solicitation. Watch appendix open/close dates, dollar caps and topics can vary appendix to appendix. nasa.gov/sbir_sttr

How much cost share does SBIR require?

None. Unlike Tipping Point, NASA SBIR and STTR require no cost share and no matching funds. That is a major reason they are the most founder-friendly entry point, full funding, no dilution, no match.

Does NIAC fund idea-stage concepts?

Yes, that is exactly its niche. NIAC funds early-stage, high-risk, visionary concepts (roughly TRL 1-3) that are too radical for SBIR. If your idea is a paper concept that needs a feasibility study, NIAC Phase I is the door.

What is a funded vs unfunded Space Act Agreement?

A funded SAA comes with NASA dollars and milestone payments (e.g., Tipping Point, commercial crew/cargo). An unfunded SAA carries no cash, you get NASA's facilities, personnel, test time, and technical collaboration in kind. Unfunded SAAs are often the cheapest way to de-risk hardware with NASA.

Why does NASA want me to simulate before flight?

Because flight is expensive and unforgiving. NASA and reviewers expect modeling, simulation, and ground test to raise your Technology Readiness Level and retire risk before any launch. Strong simulation evidence also makes SBIR, Tipping Point, and NIAC proposals far more credible.

Can an SBIR turn into a real NASA program?

Yes, via Phase III. Because Phase III can be sole-sourced with no dollar cap, an agency (or prime contractor) can buy your matured SBIR technology directly. Many space suppliers trace their first operational NASA contract to an SBIR lineage.

Which NASA program is best for a pre-revenue hardware startup?

Start with SBIR Phase I (non-dilutive, no cost share, ~$150K to prove feasibility). If your concept is still conceptual, NIAC. Once you have a working prototype and a customer story, graduate to Tipping Point for $1M-$20M scale-up.

Do I need SAM.gov to apply?

Yes. Federal award programs require an active SAM.gov registration and a Unique Entity ID before you can be funded. Start it early, registration can take days to weeks, and an inactive SAM record will block an otherwise-winning proposal.

You may also qualify for
One team, many funding maps

Other funding ecosystems we map

Chasing one program often means you qualify for others you haven't heard of. These sister guides cover more of the U.S. non-dilutive landscape — same honest, no-nonsense approach. Not sure which fits what you're building? Ask us — we'll point you at the right doors, even the ones that aren't ours.