Strategic Funding Increase and Tactical Funding Increase Program (STRATFI/TACFI)
STRATFI  TACFI Infographic

Making Big Bets on Great Ideas

AFVentures, in collaboration with the Department of the Air Force (DAF) SBIR/STTR Program, has launched a transition-focused funding opportunity for Air and Space Force SBIR/STTR companies. The intent of the program is to scale technology development over the “valley of death” by capitalizing current SBIR/STTR Phase II efforts to turn prototypes into Air and Space Force Programs. Through the STRATFI/TACFI Program, AFWERX – the parent organization of both AFVentures and DAF SBIR/STTR - will facilitate delivery of strategic capabilities for the Department of the Air Force.

The STRATFI, or Strategic Funding Increase, program is focused on large-scale, strategic capabilities at the DAF level. The TACFI, or Tactical Funding Increase, program is focused on transitioning smaller-scale, tactical capabilities at the operational level. With both options available to DAF SBIR/STTR Phase II companies, STRATFI/TACFI is able to scale innovation support across technology sectors and mission needs.

The success of STRATFI/TACFI relies on direct interaction between mission owners, acquisition organizations, private investors, and technology producing companies to collaborate on national security technologies. We call this “government syndication”, i.e., a government-led co-investment model of technology development. It is operationalized through matched investment – all STRATFI/TACFI companies require investments from at least two sources of capital, with DAF SBIR/STTR being one. The other can come from Private and/or Government Sources.

The ratio of required matched investment depends on the sub-program. Through TACFI, small businesses can receive from $375,000 to $1.7 million in SBIR/STTR funds over a two-year period. For every dollar of SBIR/STTR funds, companies must also receive at least $1 of other government funding (i.e., non-SBIR/STTR) OR $1 of private funding.  STRATFI offers small businesses between $3 million and $15 million in SBIR funds over a four-year period. Given the larger dollar size and strategic nature of the program, the matching requirements are more robust. For every $1 of SBIR/STTR funds, companies must also receive $2 of other government funds OR $1 of other government funds and $2 of private funds.

Eligibility relies on several criteria. This includes either having an active DAF SBIR/STTR project in Phase II or must have completed one within the last three years. The subject also must not already have been awarded a Sequential Phase II contract and must meet minimum matching investment requirements.

Download the STRATFI/TACFI PDF here