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Apr 9, 2020

Does Size (of Your Company) Matter

Time to read: 1 min

We thought this was pretty interesting. It turns out there are pretty significant and consistent differences between the sizes of the companies getting funded by different R&D teams. And here’s what we think is driving the differences:

  • The DOD, Dept of Energy, and NASA are interested in physical products that may require more capital equipment, and thus tend to go to bigger companies

  • The DOD and NASA need products that operate in specialized environments (underwater, space, etc) and small companies likely do not have the infrastructure to build solutions for such specialized environments

  • A lot of companies that pursue federal R&D funding start as services companies which tend to employ a lot of people, so in a 100 person company only 5 of them might be focussed on product development

That being said if you’re a small business I’d have a preference for R&D teams that tend to fund small businesses. They’ll understand your resources restrictions and economics a little more.


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