SBIR rules changes – implications for biotech firms and venture capital – arguments from both sides.

SBIR grants fund translational, early stage, research and are used extensively by entrepreneurs seeking to fund initial research in preparation for starting a company and attracting larger, typically equity-seeking, investors.

A reinterpretation of Small Business Administration (SBA) guidelines excludes many VC-backed companies by requiring 51% ownership by individuals. With cases being made for and against lifting the 51% ownership requirement, this article presents arguments from both sides.

From Yali Friedman, Ph.D.,

Full Discussion: http://biotech.about.com/od/fundingmarkets/a/aa_SBIRargs.htm