Setting Realistic Expectations for First-Time Applicants
If you’re gearing up to submit your very first SBIR proposal, let me start by saying: that’s a huge milestone. It takes guts, vision, and no small amount of patience to even get to this point. But here’s the truth no one tells you upfront: your first SBIR proposal probably won’t win.
And that’s totally normal.
Across the major agencies participating in the SBIR/STTR programs, the average Phase I success rate floats around 17% to 20%. (Honestly, even I double-checked that when I first started working in this field.) Some agencies, like NSF, sometimes push a bit higher; others, like DoD, can be even tougher depending on the topic. Bottom line: most proposals don’t get funded the first time around.
This doesn’t mean your idea isn’t good. It doesn’t mean you aren’t cut out for this. It just means the SBIR process is intensely competitive, and writing a winning proposal is a skill—one that gets better with practice.
I’ve helped dozens of startups through their first, second, and third proposals. A lot of them heard “no” before they heard “yes.” And frankly? The ones who stuck with it ended up with stronger technologies and stronger businesses because of it.
So if you’re feeling nervous about the odds, or frustrated if you’ve already gotten your first “decline,” know that you’re in good company. Here’s where things get interesting: how you respond to that first outcome will shape your success moving forward.
Learning from Early Rejections
First off, don’t take it personally. Rejection is part of the SBIR/STTR game. What’s important is what you do next.
Here are three quick strategies that will help you turn that “no” into your future “yes”:
- Request and Review Feedback: Most agencies will send you reviewer comments if you ask (sometimes automatically). These are gold. Look for recurring themes in the feedback: is it technical feasibility? Market readiness? Team experience? Jot them down.
- Get a Second Opinion: Find someone who’s been through the process, a consultant (like us at GrantCraft), an SBIR program director, or even another founder. Fresh eyes can help you interpret feedback objectively and spot opportunities for improvement.
- Revise, Refine, Resubmit: Use your newfound insights to tighten your technical aims, strengthen your commercialization plan, or better articulate your innovation. You’re not starting over, you’re building smarter.
I remember working with a first-time applicant who got crushed by reviewer comments on their first NIH SBIR, they nearly walked away. Instead, we got some fresh eyes, restructured the Specific Aims to align with reviewer feedback, revamped our commercialization approach, added a couple of Key Personnel to the team, and nailed it on the second try. (Still one of my favorite comeback stories.)
Mini Checklist for Second-Round Success
Before you hit “submit” again, run through this quick checklist:
- ✅ Clear Problem Statement: Can a non-expert immediately understand the issue you’re solving?
- ✅ Feasible Work Plan: Are your research aims achievable within the Phase I timeline and budget?
- ✅ Market Analysis: Have you described the commercial need and pathway in plain language?
- ✅ Strong Team: Are you showcasing your team’s qualifications and explaining any gaps you’ve filled?
- ✅ Budget Alignment: Does your budget match your activities, without raising red flags?
- ✅ Addressed Feedback: Did you directly fix the weaknesses flagged by previous reviewers?
If you can honestly check off all six, you’re in a great place to resubmit with confidence.
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At the end of the day, SBIR success is as much about grit as it is about brilliance. Every “no” moves you closer to “yes” if you treat it as part of the process.
Need help dissecting your reviewer comments or planning your resubmission? Reach out to GrantCraft Consulting. I’d love to help you turn lessons learned into a winning proposal!