National Science Foundation Offers Startups Up to $1.55 Million in Non-Dilutive Funding

The U.S. National Science Foundation is accepting applications for up to $1.55 million in non-dilutive research and development funding through its America’s Seed Fund program, according to a report by Tech Startups (https://techstartups.com/2026/10/06/the-u-s-government-is-offering-startups-up-to-1-55-million-in-funding-and-taking-0-equity-heres-how-to-apply/). The awards take zero equity and assert no ownership claims over recipient intellectual property.

The funding is distributed via the NSF’s Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which restarted in May backed by $250 million earmarked for early-stage U.S. businesses developing high-risk technologies with commercial potential.

Under the standard track, startups can apply for Phase I grants of up to $305,000 for six- to 18-month projects, followed by up to $1.25 million in Phase II funding. The agency's Fast-Track option bundles both tiers into a single proposal, offering up to $400,000 for Phase I and up to $1.155 million for Phase II, reaching approximately $1.55 million in total.

Eligibility is restricted to U.S.-based small businesses with fewer than 500 employees, including affiliates. Qualifying entities must be at least 51% owned and controlled by U.S. citizens, permanent residents, or qualifying domestic small businesses, and all funded R&D work must occur within the United States. Principal investigators are required to spend the majority of their working hours employed by the startup during the grant, though advanced academic degrees are not mandatory.

The Fast-Track route carries stricter entry criteria: applicants must hold qualifying NSF-funded research from the past five years, demonstrate recent customer-discovery training such as I-Corps, field a complete team, and receive an invitation following a Project Pitch. Startups without that background can apply through the standard Phase I route.

The application workflow begins with a brief Project Pitch detailing the technology, technical risk, market need, and societal impact. Startups selected by the NSF receive an invitation to submit a full proposal via Research.gov. Project Pitch reviews take roughly one to two months, and final funding decisions follow approximately six months after full proposal submission.

The next full-proposal deadline is November 4, 2026, at 5 p.m. local time, with subsequent deadlines set for March 4 and July 7, 2027. NSF expects to make roughly 180 SBIR Phase I awards, 50 STTR Phase I awards, 15 Fast-Track SBIR awards, and three Fast-Track STTR awards annually under the current solicitation.