Do I have to be incorporated to apply to AFWERX?
Not to start learning the landscape — but to win a contract you'll need a registered US small business (under 500 employees, majority US-owned) with active SAM.gov and DSIP registrations. Those registrations take time, so if you're pre-incorporation, begin them early. Nothing on this site requires you to be incorporated to read it.
Is AFWERX money dilutive? Do they take equity?
No. SBIR/STTR contracts, TACFI, STRATFI, and the new Strategic Breakthrough tier are all non-dilutive — they're contracts, not equity investments. The matching-money side of STRATFI/TACFI may involve private investors who do take equity, but that's a separate, optional relationship you choose.
How much can I actually get, and how fast?
Roughly: Phase I ~$75K over ~3 months; Phase II ~$1.25M–$1.9M over ~15–24 months; TACFI ~$375K–$2M; STRATFI ~$3M–$15M; and the new Strategic Breakthrough tier up to ~$30M. Amounts and timelines vary by cycle and are approximate — always confirm on the official AFWERX and SpaceWERX pages before you plan around a number.
What's the difference between AFWERX and SpaceWERX?
AFWERX is the innovation arm of the Department of the Air Force (a directorate within AFRL); SpaceWERX is the US Space Force counterpart. They share the same funding ladder and tools. Pick based on where your technology fits — air-domain work goes to AFWERX, on-orbit and launch to SpaceWERX — though plenty of dual-use tech is relevant to both.
Do I need simulation software to win an SBIR?
No — it's not a requirement. But most of what these agencies fund is physics-heavy hardware, and credible engineering analysis makes a much stronger feasibility and prototype case than hand-waving. Simulation is a way to de-risk the build and produce evidence reviewers respect, not a box to check.
Can you get me an Ansys evaluation license and engineering help?
We can help arrange an Ansys evaluation license, live engineering support, and free learning content through a channel partner. To be clear: evaluation licenses and the Ansys Startup Program are Ansys programs, offered at Ansys and partner sole discretion, and you're free to use any partner you like. Everything on this site is informational — nothing here is promised, guaranteed, or owed.
How much is an AFWERX Open Topic Phase I award?
An AFWERX Open Topic SBIR Phase I is typically up to
$75,000 (about $110,000 for STTR) for roughly a
3-month feasibility study. It is a fixed-price contract, not an equity investment.
See AFWERX Get Funded.
How much is an AFWERX Phase II award?
A standard SBIR/STTR Phase II is up to about $2 million over up to 24 months, funding a prototype tied to a Department of the Air Force need. A Direct-to-Phase II (D2P2) is typically up to about $1.25M.
What are STRATFI award amounts?
STRATFI (Strategic Funding Increase) awards run
$3M to $15M total over up to 48 months, combining SBIR dollars with matched government and private capital.
AFWERX Ventures overview.
What are TACFI award amounts?
TACFI (Tactical Funding Increase) provides $375,000 to $2 million in SBIR/STTR funds, matched roughly 1:1, generally over a two-year period of performance.
What is the STRATFI matching fund requirement?
For STRATFI, every $1 of SBIR funds must be matched by $2 of other government funds, OR $1 of other government funds plus $2 of private funds. The private match can include venture capital, revenue, or other non-SBIR dollars.
What is the TACFI matching requirement?
TACFI is lighter: for every $1 of SBIR funds you need at least $1 of other (non-SBIR/STTR) government funding OR $1 of private funding. That makes it the more accessible bridge award.
Is AFWERX SBIR funding dilutive?
No. SBIR/STTR awards are non-dilutive government contracts — AFWERX takes no equity and no board seat. You keep 100% ownership of your company and your IP data rights.
How much equity does AFWERX take?
Zero. AFWERX and SpaceWERX fund through SBIR/STTR contracts, not investments, so they take no equity, warrants, or ownership stake in your startup.
What is a TPOC?
A TPOC is a Technical Point of Contact — a Department of the Air Force civilian or military member who has a mission interest in your technology, is named in your Customer Memorandum, and works with you through the contract.
Can I apply to AFWERX Open Topic without a customer?
For Phase I, generally yes — a customer is not strictly required to submit. But by Phase II you need a Customer Memorandum naming a TPOC, and having an Air Force or Space Force end-user dramatically improves your odds at every stage.
Is the Customer Memorandum legally binding?
No. The Customer Memorandum is a
non-binding document that signals genuine government interest and names your TPOC. It is not an MOU or a funding commitment, but it is required for Phase II.
AFWERX Get Funded.
How long does an AFWERX award take to pay out?
Expect roughly 2 to 6 months from proposal submission to contract award and first funding, depending on the solicitation cycle, negotiations, and your SAM.gov/DSIP registration being complete. STRATFI can take longer because the match must be assembled first.
How long is the AFWERX Phase I period of performance?
AFWERX Open Topic Phase I is a short ~3-month feasibility effort with two deliverables (a preliminary and a final report).
Who is eligible for AFWERX SBIR funding?
You must be a U.S. for-profit small business with 500 or fewer employees, majority U.S.-owned and controlled, registered in SAM.gov and DSIP. Foreign affiliations must be disclosed and can trigger additional review.
Can a pre-revenue or pre-seed startup win AFWERX SBIR?
Yes. SBIR is designed for early companies — no revenue, past performance, or prior contract is required to win a Phase I. What matters is technical merit and dual-use relevance to an Air Force mission.
Can I apply to AFWERX before incorporating?
No — you must be a legally formed U.S. for-profit entity with a SAM.gov Unique Entity ID and DSIP registration to submit. Incorporate and register first; both steps take time, so start early.
Can a VC-backed startup win SBIR?
Yes, but ownership rules apply: for SBIR, the company generally must be more than 50% owned by U.S. individuals (or, under the VCOC rule, by eligible U.S. venture/PE firms). Heavy institutional ownership can require the majority-VC-owned pathway.
Can a foreign-owned company win AFWERX SBIR?
Generally no — SBIR requires the business to be majority-owned and controlled by U.S. citizens or permanent residents. Any foreign affiliation, ownership, or foreign nationals on the team must be disclosed and may disqualify or delay the award.
What is an AFWERX pitch day?
A pitch day is a fast-turnaround demo event where selected companies present to Air Force stakeholders, and winners can receive an SBIR contract award — sometimes same-day — dramatically compressing the normal timeline.
What is the difference between STRATFI and TACFI?
Both bridge the gap after Phase II.
TACFI is smaller ($375K–$2M, 1:1 match); STRATFI is larger ($3M–$15M, up to a 1:2 government-plus-2x private match). STRATFI is for programs ready to scale toward a program of record.
AFWERX FAQ.
Does winning SBIR make me eligible for sole-source contracts?
Yes. A completed SBIR/STTR effort creates Phase III sole-source authority — any federal agency can award you a follow-on contract derived from that work without full competition, with no dollar ceiling.
AFWERX vs DIU — which is right for my startup?
AFWERX funds via SBIR/STTR contracts (non-dilutive, company-initiated). DIU (Defense Innovation Unit) runs problem-specific solicitations using Other Transaction Authority for near-term prototypes. Many startups pursue both; AFWERX is usually the easier front door for an early company.
Is AFWERX SBIR a grant or a contract?
It is a contract, not a grant. You deliver defined milestones and reports for fixed-price payments, and the government receives contracted deliverables — but you retain your SBIR data rights and IP.
How do I find a TPOC or Air Force customer?
Find your end-user by attending AFWERX/SpaceWERX events, engaging MAJCOM innovation cells, and networking through pitch days and program offices. A TPOC is any interested DAF civilian or military member willing to sponsor and use your technology.
Is the AFWERX SBIR program still funded in 2026?
SBIR/STTR authorization lapsed on September 30, 2025, pausing new solicitations, but reauthorization moving through Congress in 2026 extends the program (reported through ~2031). Check the DSIP portal for the current open solicitation schedule before you build a proposal.
