Launch Tennessee FY26 SBIR/STTR Matching Fund surpasses $1 billion in economic impact

For immediate release

Launch Tennessee announces FY26 SBIR/STTR Matching Fund companies, surpasses $1 billion in economic impact

Nashville, TN - Launch Tennessee today announced the 32 companies selected for its FY26 SBIR/STTR Matching Fund, marking a historic milestone as the program surpasses $1 billion in total economic impact - measured through follow-on capital raised, additional grants leveraged, and wages generated across the State of Tennessee.

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are highly competitive federal programs that catalyze domestic small businesses to engage in research and development with the potential for commercialization.

Through the SBIR/STTR Matching Fund, Launch Tennessee helps Tennessee companies compete more effectively for federal SBIR/STTR awards. Since 2017, this support has contributed to a doubling of annual SBIR/STTR funding in the state, while providing critical capital to accelerate commercialization for awarded companies.

This year's cohort reflects the continued strength and growth of Tennessee's innovation economy and marks a first for the SBIR/STTR Matching Fund. Six awarded companies are licensing technologies, have spun out from, or are formally affiliated with institutions participating in the Tennessee Technology Advancement Consortium (TTAC).

This includes two companies from Tennessee State University, marking a historic first for the program, along with two companies each from Tennessee Technological University and The University of Memphis. In addition, the program continues to broaden its reach with 14 first-time awardees, 10 rural companies, five companies based in West Tennessee, and four companies led by veterans.

"This milestone confirms what we have long believed about Tennessee entrepreneurs," said Lindsey Cox, CEO of Launch Tennessee. "When founders here have access to capital, technical support, and the right partners, they build companies that create real jobs, attract private investment, and generate lasting economic value for the state. The SBIR and STTR Matching Fund is not just fueling individual startups. It is strengthening Tennessee's innovation economy at scale."

Tennessee's momentum in federal SBIR/STTR funding continues to accelerate. Over the last three years, SBIR funding in the state has grown by 52 percent, rising from $32.1 million in FY22 to $48.8 million in FY24. This growth ranks Tennessee as the sixth fastest growing SBIR state nationally and the fastest growing among the 11 peer states analyzed in Launch Tennessee's most recent RTI report, Scaling Up: Benchmarking and Recommendations for Growing Tennessee's Tech Based Economy.

"The SBIR/STTR Matching Fund continues to deliver an incredible return on investment for Tennessee," said Stuart C. McWhorter, Deputy Gov. and Tennessee Department of Economic and Community Development (TNECD) Commissioner. "This program reflects our commitment to supporting innovation that leads to new jobs, new technologies, and long-term economic growth. Launch Tennessee's partnership in administering this fund ensures that state resources are driving measurable impact across all regions of Tennessee."

Nearly thirty percent of this year's awards were made to companies in Launch Tennessee's active investment portfolio or pipeline. More than half of all FY26 awardees also received direct support from Launch Tennessee in preparing their SBIR or STTR applications, reflecting how founders are supported at multiple stages throughout the innovation and capital continuum.

FY26 SBIR/STTR Matching Fund Companies

• East TN: Applied 2D Materials, Branch Technology, Ce-Ri-SS Materials, Coulomb Technology, CrossLink Composites., Endeavor Composites, FC Renew, Fibarcode, Nucleon Power, Orion Therapeutics, Re-Du, SkyNano, Ultrasonic Technology Solutions, Veracity Nuclear, Winter Innovations, Z18 Engineering
• Middle TN: Apex Turbine Testing Technologies, ARCS Aviation, Arena Labs, Duet Biosystems, Healing Innovations, International Femtoscience, Pangea, PnTBiologicals, Terra Watts, Walnot, Whisper Aero
• West TN: Corami Biotech, Foundation Instruments, Hera Health Solutions, Metamorphix, SEAK Therapeutics
  

Program Impact

The milestone of $1 billion in economic impact underscores the transformative effect the SBIR/STTR Matching Fund has had on Tennessee's innovation economy since its inception in 2017.

Companies supported by the Matching Fund in FY25:

• Contributed $117 million in economic impact to the State of Tennessee
• Added 92 high quality jobs
• Raised $33 million in follow-on capital and procured an additional $75 million in non-dilutive capital

Since 2017, companies supported by the LaunchTN SBIR/STTR Matching Fund have:

• Generated more than $1.1 billion in economic impact to the State of Tennessee
• Created 1,138 high quality jobs with an average wage of $96,527
• Raised just over $453 million in follow-on capital
• Acquired more than $449 million in non-dilutive capital
• 61% achieved post-revenue status, accounting for $161M in annual revenue.

About the SBIR/STTR Matching Fund

As part of Launch Tennessee's mission to be Tennessee's hub for startups and innovation, the SBIR/STTR Matching Fund is a strategic initiative to support entrepreneurs able to secure highly competitive federal awards for the research and development of their innovative technologies. The program accelerates commercialization and business development for Tennessee companies participating in what's colloquially known as America's Seed Fund.

Every year, 11 participating federal agencies allocate capital totaling $4 billion to the SBIR/STTR programs, making them the country's largest source of early-stage funding for research and development. Launch Tennessee supports Tennessee founders' applications to the federal programs, and when founders secure that funding, Launch Tennessee invites the company to apply for matching funds to further accelerate their growth in Tennessee.

By accepting a Matching Fund award, companies commit to remaining headquartered in Tennessee for at least 24 months post-award and to semiannual reporting with Launch Tennessee.

Fine more information about the SBIR/STTR Matching Fund on LaunchTN's website.

About Launch Tennessee

As Tennessee's hub for startups and innovation, Launch Tennessee's mission is to empower innovators across Tennessee by providing capital, commercialization and connections.

As a public-private partnership, we are uniquely positioned to provide direct investment, while also supporting collaboration among founders, investors, researchers, the private sector and government.

Media Contact:
Chloé Morrison, Director of Communications, [email protected]