Start-ups with venture capital support will at last be eligible for Small Business Innovation Research funding when provisions of the program’s reauthorization take effect in 2013, but the program’s requirement that a considerable portion of the award be used for work in-house by grantees may create a new class of outcast companies: the growing number of virtual biotechs.
The program grants Phase I awardees $150,000 over six months to establish the commercial feasibility of a project. For Phase...