Startups often struggle with grant applications. A new group wants to change that.
A new coalition wants to make sure Pittsburgh companies don't leave federal money on the table.
The Pittsburgh Technology Council and Keystone Space Collaborative have teamed up to launch the Data, Robotics, Energy, AI, Manufacturing and Security (DREAMS) Coalition, an initiative designed to help local companies in that industry cluster better apply for federal grant funding. The application to be considered for the coalition, announced last week, is open to companies at all stages to apply — and it comes at just the right time.
Local companies need help applying for Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding, especially in the current 'uncertain federal funding environment,' said Justine Kasznica, founder and board chair of Keystone Space Collaborative. Bringing businesses together in a coworking space and connecting them with government agencies and investment stakeholders provides the foundation to score more grants.
'There [are] a number of these companies that really need support,' Kasznica said, 'identifying what opportunities exist and then sitting down and figuring out what they need to do to maximize their chances of getting critical early-stage [research and development] dollars.'
From startups that are first-time applicants to seasoned businesses, the DREAMS coalition is seeking companies with expertise in data, robotics, energy, AI, manufacturing and security that can apply their skills to solve problems identified by federal agencies.
Along with offering federal funding assistance, the coalition will provide a collaborative workspace in Bakery Square and facilitate connections to industry stakeholders and investors to propel advanced technology startups in aerospace, robotics, AI and manufacturing.
'If you take the assets we have in this region, both historical and recent, there's not one industry that's going to take us to the next iteration of Pittsburgh,' Audrey Russo, president and CEO of the Pittsburgh Technology Council, told Technical.ly. 'The diversity of the [coalition's] industries are only going to make us stronger.'
As applications roll in, companies could begin receiving support at the coalition's coworking space as early as next month, according to Kasznica and Russo.
The coalition is currently in a six-month pilot phase, but if it proves successful, the Pittsburgh Technology Council and Keystone Space Collaborative plan to extend the initiative and establish a more permanent location.
'We're calling it a pilot because we want to test out this broader industry cluster,' Kasznica said. 'How we evaluate ourselves is based on how many new projects and funding dollars we can bring to new technologies or existing companies.'
Instead of supplying access to cash like accelerators and incubators, the coalition relies on the importance of building connections and providing hands-on guidance through the grant application process.
A tough fed funding landscape still rife with opportunities
Despite the uncertain federal funding landscape, Russo and Kasznica both said they were optimistic about local companies securing grants moving forward.
Since the creation of the SBIR and STTR programs, Pittsburgh companies have received over $400 million for innovation research and new technology development across over 1,000 grant awards. The early-stage, non-dilutive funding has allowed Pittsburgh to compete with larger cities that have more private capital and has helped numerous local startups get off the ground.
The coalition will specifically target agencies in aerospace and defense, Kasznica said, which aligns with the type of funding Pittsburgh companies have received to date. A majority of the grants to Pittsburgh companies have come from the Department of Defense, with the other top agencies being the Department of Health and Human Services, NASA, the Department of Energy and the National Science Foundation.
'We're anticipating even more opportunities, in some cases, particularly for the future technology development that we're looking at doing in this region, which is advanced manufacturing, robotics and AI,' Kasznica said. 'There's a real appetite for that, even with this administration.'
Through DREAMS, Kasznica and Russo want to keep those dollars flowing into the region.
What early-stage companies often get wrong when applying for grants, according to Kasznica, is approaching the process with a product-first mindset and trying to pitch a product they've already built. The coalition aims to shift this approach early on by encouraging companies to first understand the needs of potential customers and then apply their expertise in robotics, manufacturing, or AI to solve those specific problems.
'It's really important to have good processes intact and people around you that have experience doing this kind of work,' Russo said, 'so that you can understand what you're able to leverage and what you need to make it happen.'
Plus, a free coworking space to spread knowledge even further
With a $60,000 grant from the Benedum Foundation, the coalition is leasing space at Spaces Bakery Square, utilizing the coworking hub with 11 rooms, including private offices and flexible conference and working areas that could accommodate up to 30 people.
Staff from the Pittsburgh Technology Council, Keystone Space Collaborative and innovation research firm Parallax will all be onsite to work with participating companies.
Through the no-cost coworking space, companies will gain access to mentorship and open office hours with a Parallax team member who specializes in connecting universities, businesses and government. Also, eligible members will be able to access Keystone Innovation Zone tax credits, further incentivizing growth.
Additional programming could include workshops on scaling innovation and networking events designed to build a strong, connected entrepreneurial ecosystem, according to a recent press release.
'We need a better concierge system, which is what we're trying to set up here with this coalition,' Kasznica said. 'This isn't a traditional accelerator … we're not giving money out, but we're providing a place to come and participate, meet potential partners and funders.'
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