SpaceWERX SBIR: How Space Startups Win Space Force Awards
TL;DR: SpaceWERX is the U.S. Space Force's innovation arm, and it runs the Space Force SBIR and STTR programs. Startups compete for Phase I feasibility awards, Phase II prototype awards and STRATFI or TACFI growth funding. Register in SAM.gov and DSIP early, answer an open topic, line up a Space Force customer and plan the transition from day one.
Key takeaways
- SpaceWERX manages the Space Force's SBIR and STTR programs; proposals go through the DSIP portal.
- Phase I proves feasibility, Phase II builds a prototype, and STRATFI or TACFI help scale it.
- Open Topic Phase II and Direct to Phase II need a signed Space Force customer memorandum.
- Get registered early, read every solicitation document and treat customer discovery as part of the work.
What is SpaceWERX?
SpaceWERX describes itself as the innovation arm of the U.S. Space Force. It uses funding from the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs to find emerging technologies and move them into Space Force use.
According to its Get Funded page, SpaceWERX manages the Space Force's SBIR and STTR programs and has awarded contracts to startups and small businesses with commercial and defense technologies since 2019. It sits alongside AFWERX, which runs the same programs for the Air Force. Both are part of the Department of the Air Force.
For a space startup, that makes SpaceWERX the front door to Space Force SBIR money. If you are new to the wider program, our guide to SBIR Phase 1 for space startups covers the basics, and how to sell to the Space Force covers the buyer beyond SBIR.
SBIR vs STTR: which one fits your startup?
Both programs fund research and development by U.S. small businesses. The differences, as SpaceWERX lists them:
| SBIR | STTR | |
|---|---|---|
| Established | 1982 | 1992 |
| Who does the work | Your small business | Your small business plus a U.S. non-profit research institution, such as a university |
| Basic requirement | For-profit U.S. business with 500 or fewer employees | For-profit U.S. business partnered with a U.S. research institution |
| Work split | Principal investigator must be primarily (more than 50 percent) employed by the small business | At least 40 percent by the small business and 30 percent by the research institution |
AFWERX adds that eligible applicants are for-profit U.S. small businesses with 500 or fewer employees, including affiliates, and more than 50 percent owned and controlled by U.S. citizens, permanent resident aliens or qualifying U.S. entities. Additional rules apply, so read the eligibility guide linked from the SpaceWERX page before you write a word.
Choose STTR if a university or lab partner is central to the research. Choose SBIR if your own team does the work.
How do the SpaceWERX SBIR phases work?
SpaceWERX lays out four stages. Funding amounts and durations change between solicitations, so check the current figures on the Get Funded page.
Phase I: feasibility study
Phase I proves the technical merit and commercial potential of your idea. SpaceWERX lists a duration of 3 to 12 months. Under a Specific Topic, Phase I is a technical feasibility study. Under an Open Topic, it also includes customer discovery: finding the Space Force users who need what you build.
Phase II: prototype development
Phase II builds a working prototype and matures the technology, and SpaceWERX says it typically requires a Space Force customer. You get there by finishing Phase I or by applying for Direct to Phase II (D2P2) if your technology is already past feasibility. For Open Topic follow-on Phase II and Open Topic D2P2, you need a signed USSF Customer Memorandum. Specific Topics already have a customer identified.
STRATFI and TACFI: growth funding
The Strategic Funding Increase (STRATFI) and Tactical Funding Increase (TACFI) help successful Phase II projects scale and transition. SpaceWERX lists eligibility for Phase II projects within two years and requires matching funds from government, private investment or both. STRATFI is aimed at strategic, high-impact capabilities; TACFI at tactical innovation and fast transition.
One detail founders often miss: in the PY26.2 TACFI notice, the capability package ingest form must be completed by a government point of contact, such as the end user, customer or technical point of contact. In other words, you need a government champion before you can compete.
Phase III: commercialization
Phase III moves the technology into operational use or the commercial market with non-SBIR funding, such as other government contracts or private investment. SpaceWERX notes that completing Phase I or II can lead to sole-source Phase III contracts, which is why the early phases matter so much. If your product also sells to commercial buyers, our guide to dual-use positioning shows how to tell both stories.
How do you apply for a SpaceWERX SBIR?
The steps below follow the official SpaceWERX, SBIR.gov and SAM.gov guidance.
- Register in SAM.gov. SpaceWERX says you must be registered in the System for Award Management before a contract can be awarded. Registration is free on SAM.gov, assigns your Unique Entity ID and must be renewed every 365 days.
- Register in DSIP. SBIR.gov explains that the Defense SBIR/STTR Innovation Portal (DSIP) is the official site for topic search, topic Q&A and electronic proposal submission. Proposals sent any other way are disregarded.
- Watch the solicitation calendar. SpaceWERX posts each solicitation's pre-release, open and close dates on its Get Funded page. Topics are released in numbered cycles, and the defense program does not accept unsolicited proposals.
- Talk to topic authors. SpaceWERX encourages applicants to connect with topic authors to understand requirements. Check the solicitation for when direct contact is allowed and when questions move to the DSIP topic Q&A.
- Read every instruction document. Each solicitation has a program-wide document plus component instructions for the Space Force. Those set the proposal format, page limits, cost structure and deadlines.
- Line up your customer. For Open Topic Phase II and D2P2, start customer discovery early so you can secure the customer memorandum.
- Submit early. SBIR.gov advises submitting well before the close to avoid delays from heavy traffic in the final hours.
If you are not yet registered anywhere, start with SAM.gov today. It is the slowest step and the one most likely to block you.
How do you find a Space Force customer?
Customer discovery is where marketing and business development earn their keep. A strong customer memorandum comes from a real conversation about a real operational problem, not a cold request.
- Start with the problem, not the product. Write one plain sentence on the mission problem you solve. Our guide to explaining complex space technology to buyers shows how.
- Run structured discovery. Use the interview approach in our space startup customer validation guide and keep notes on who owns the problem and the budget.
- Build a one-page capability statement and a clear web page that explain what you do, who it is for and what you have proven.
- Show up where users are. Industry days, SpaceWERX events and conferences put you in front of operators and program offices.
- Keep it export-safe. Public marketing about defense technology must stay within ITAR and EAR limits. See ITAR-safe marketing.
If clearances are part of your path, our note on Space Force ACES and security clearances for startups is worth a read.
What mistakes sink SpaceWERX proposals?
- Registering late. SAM.gov and DSIP problems near a deadline are avoidable.
- Writing for yourself, not the reviewer. Map every section to the topic and the evaluation criteria.
- No transition story. Reviewers want to see how the technology reaches users after the award. Plan Phase II, STRATFI or TACFI and Phase III from the start.
- A thin customer case. "We emailed a colonel" is not discovery. Show who needs it and why.
- Treating SBIR as the business model. SBIR is non-dilutive funding, not product-market fit. Our space startup funding guide shows where it fits next to grants, angels and venture capital.
How does SpaceWERX fit into your marketing plan?
A SpaceWERX award is also a credibility signal. Once you win, announce it within the rules of your contract, add it to your website and capability statement, and use it in investor updates. The space marketing guide shows how to turn milestones like this into content, outreach and pipeline, and how to start a space company covers the wider founder path.
Frequently asked questions
What is SpaceWERX SBIR?
SpaceWERX SBIR is the Space Force's Small Business Innovation Research program, managed by SpaceWERX, the Space Force's innovation arm. It funds U.S. small businesses through Phase I feasibility studies, Phase II prototypes and STRATFI or TACFI growth awards.
Who is eligible for a Space Force SBIR?
SpaceWERX and AFWERX list for-profit U.S. small businesses with 500 or fewer employees, including affiliates, that are more than 50 percent owned and controlled by U.S. citizens, permanent residents or qualifying U.S. entities. Additional rules apply, so check the official eligibility guide.
What is the difference between STRATFI and TACFI?
Both add funding to successful Phase II projects and require matching funds from government, private investment or both. STRATFI targets larger strategic capabilities; TACFI targets smaller tactical efforts and fast transition. A government point of contact completes the capability package.
Where do I submit a SpaceWERX SBIR proposal?
All defense SBIR and STTR proposals go through the Defense SBIR/STTR Innovation Portal (DSIP). You also need an active SAM.gov registration before a contract can be awarded.
Do I need a Space Force customer before applying?
Not for every phase. Open Topic Phase I includes customer discovery. For Open Topic Phase II and Direct to Phase II, SpaceWERX requires a signed USSF customer memorandum. Specific Topics already have a customer identified.
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