SBIR/STTR Programs Expired. Here Are 5 Funding Sources Most Biotech Founders Don't Know About

Focused research organizations, foundation mission grants, and more

If you’re building in biotech, you’re likely already aware that the SBIR and STTR programs in the United States expired on September 30th, 2025 and haven’t been reauthorized. For many founders, these programs represented the most accessible source of non-dilutive capital to help breakthrough technologies get off the ground without giving up equity.

The A2 Pilot Awards, another major source of early-stage funding for companies focused on aging, won’t re-open for applications until fall 2026.

But don’t despair. While SBIR and STTR have high visibility, they’re far from the only game in town. In this article, I’ll cover the grants, prizes, foundation funding, and alternative capital sources that can keep biotech innovation moving forward.

1. Focused Research Organizations (FROs)

What they are: FROs fund ambitious, multi-year research projects that are too large for a single lab but too risky for traditional funding. They’re designed specifically for the chasm between academic discovery and commercial viability.

Best for: Scientists who want to tackle a specific hard problem with a coordinated team, outside the constraints of academia or traditional startups

What makes them different:

• Multi-year commitments (typically 3-5 years)

• Function as nonprofit start-ups, combining speed and innovation

• Structured as LLCs under a parent 501(c)(3) nonprofit organization

• Focus on tools, platforms, and enabling technologies

Current Opportunities:

• Convergent Research accepts concept proposals on a rolling basis

• Arc Institute supports new research initiatives in biology and biomedicine

• ARIA (UK), the Advanced Research + Invention Agency, focuses on high-risk, high-reward research

• SPRIND (Germany) supports breakthrough innovations in deep tech

• Renaissance Philanthropy focuses on transformative research projects

• Schmidt Sciences Polymath program helps cross-disciplinary teams

Check out the Overedge Catalog for more innovative research organizations!

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2. Scientific Crowdfunding

What it is: Platforms where you can raise funds directly from stakeholders (researchers, patients, enthusiasts) who believe in the work you’re doing.

Best for: Early-stage validation studies, pilot data collection, projects with clear public benefit, building credibility before larger grant applications

Primary Platform:

Experiment.com (Kickstarter for science)

What makes it different:

• You control your timeline and milestones

• Build community and early advocates

• Typical raises: $5K-$50K

• No equity, no debt, just direct support

Success factors:

• Clear, compelling story about why your research matters

• Specific milestones and budget

• Active promotion to your networks

• Regular updates to backers

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3. Prize Competitions

What they are: Challenges with cash awards for solving specific problems or achieving defined milestones

Best for: Teams with a working prototype or clear path to demonstrable results

Major Programs:

• XPRIZE ($10M-$100M+ for breakthrough innovations)

• NIH Challenge Grants (various healthcare challenges, $50K-$500K)

• HeroX (multiple biotech and health challenges, $100K-$1M+)

• Luminary Labs competitions (corporate-sponsored health innovation challenges)

What makes them different:

• You only get paid if you win or hit milestones

• But there’s no application fee, no equity given up

• Often comes with visibility, partnerships, pilot opportunities

• Some prizes pay out in stages as you progress

Strategic tip: Many prize competitions are undersubscribed in technical categories. The same innovation that wouldn’t stand out in an SBIR pool might be the only serious entry in a niche prize competition.

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4. Sponsored Research Agreements (SRAs)

What they are: Contracts where companies, foundations, or government labs fund your research in exchange for access to results, IP licenses, or first right of refusal

Best for: Research that aligns with a corporate or institutional strategy but doesn’t require you to become an employee or give up core IP

Common Sponsors:

• National Labs (DOE, NASA, etc.)

• Pharmaceutical Companies

  • Johnson & Johnson Innovation: JLABS collaborations, sponsored research

  • Takeda: External innovation partnerships

  • Pfizer: Competitive grants and research collaborations

  • Merck: Research collaborations in specific therapeutic areas

  • Novartis: Biomedical Research Business Development & Licensing

• Research Consortia:

  • TransCelerate BioPharma: Multi-company collaborative research

  • Innovative Medicines Initiative (EU): Public-private partnerships

  • Critical Path Institute: Regulatory science collaborations

What makes them different:

• Negotiable terms (you can often retain IP)

• Larger amounts than typical grants ($100K-$5M+)

• Relationship-based (less competitive than grants)

• Can be structured as milestones or cost-plus

How to pursue them:

• Attend industry conferences in your field

• Reach out to corporate innovation or ventures teams

• Partner with national labs (they often broker SRAs)

• Use platforms like InnoCentive

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5. Foundation Mission Grants

What they are: Philanthropic grants from private foundations focused on specific diseases or patient populations, often more flexible and faster-moving than government grants. Many were founded by patients or families affected by the disease.

Best for: Research with clear impact on disease foundation priorities

Major Foundations:

• Chan Zuckerberg Initiative (neuroscience, rare diseases, infectious disease)

• Gates Foundation (global health, infectious disease, vaccine development)

• Pivotal Ventures (Melinda French Gates’ foundation - women’s health, family planning, gender equity in science)

• Amaranth Foundation (longevity research, neuroscience, healthspan extension)

• Wellcome Trust (biomedical research)

• PCORI, the Patient-Centered Outcomes Research Institute (comparative effectiveness research)

What makes them different:

• Often mission-aligned vs. purely scientific merit

• More flexible timelines and budgets than government grants

• Potential for multi-year support

• Some foundations prefer direct reach-out vs. open calls

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Making Your Move: A Biotech Founder’s Playbook

While SBIR/STTR works itself out in Congress, you have options. Here’s how to think about deploying these alternatives:

If you need $10K-50K for pilot data: → Scientific crowdfunding (Experiment.com) → Small foundation grants → Early-stage prize competitions

If you need $100K-500K for validation: → Disease foundation grants (CFF, MJFF, ACS) → PCORI pilot funding → Biopharma sponsored research (early collaboration)

If you need $500K-$3M for further development: → Major foundation programs (Gates, Wellcome, CZI) → PCORI large awards → Biopharma sponsored research

If you need $3M+ for a multi-year program: → FROs (Convergent, Arc, Renaissance) → Major foundation partnerships → Consortium funding (IMI, TransCelerate)

The strategic approach:

1. Start small - Use crowdfunding or small foundations for pilot data

2. Build credibility - Use that data for larger foundation grants

3. De-risk commercially - Use foundation funding to attract biopharma SRAs

4. Scale up - Leverage all of the above for FRO funding or major partnerships

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