There is a controversy brewing in the world of government grant money to start-ups that is trickling into the VC community. The Small Business Association (SBA) of the US government administers Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) provides grants to small businesses (defined as fewer than 500 employees) to the tune of $2 billion per year. This compares to $20-30 billion per year in VC money that flows to start-ups, so a meaningful figure in the entrepreneurial economy.
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