From 2021 through 2022, over 4000 companies won SBIR/STTR Phase I grants to propose innovative solutions for national security related problems. Phase I grant winners represent a wide array of companies looking at defense problems.
While Austin, Texas is the largest hub for the types of companies winning phase I grants, there are a number of other cities that have attracted a critical mass of talent, investment, anchor technology companies and a synergy of partnerships. These cities form a decentralized network of growing capacity for national security innovation. Here is a quick look at some of the data to show where you might want to launch, if you are looking for entrepreneurial community, traction and a great culture for your national security startup.
First let’s look at cities where 30 or more companies received SBIR/STTR Phase I grants.
More broadly, here is the breakdown of SBIR/STTR Phase I awards for states that had 30 or more companies win.
Now let’s unpack some of the hidden gems on the list that might surprise you. These cities all have 20 or more companies that won SBIR/STTR Phase I grants from 2021-2022. What’s the draw? Great culture? Great coffee? Great music? Cost of living?
(City, State, Number of Companies recently winning Phase I Grants)
Portland, OR, 20
Portland, Oregon has become one of America's hottest destinations for entrepreneurs due to its vibrant startup scene. Since 2005, the Pacific Northwest Defense Coalition has worked to create, grow, & diversify new business development opportunities for Pacific Northwest defense & security industry businesses. The network is strong in Portland with services to help the startup community intersect with national security issues.
Salt Lake City, UT, 21
SLC has hundreds of resources to take advantage of for startups, including: 1 MILLION CUPS, A weekly gathering of entrepreneurs (1millioncups.com/saltlake); BOOMSTARTUP, a bootcamp program for startups (boomstartup.com); CHURCH & STATE, a non-profit incubator (cs1893.com/about), DOWNTOWN ALLIANCE, boards and committees that advocate for small business (downtownslc.org/about/mission); ENTREPRENEUR LAUNCH PAD, weekly meetings for entrepreneurs (http://www.elpnow.org); MILLER BUSINESS RESOURCE CENTER, for co-working space and incubation(themillatslcc.com); MOUNTAINWEST CAPITAL NETWORK, business networking for entrepreneurs, connecting entrepreneurs to investors (mwcn.org); REVROAD, a portfolio program that helps accepted startups grow (revroad.com); SALT MINE, where entrepreneurs hang out (meetatsaltmine.com); SILICON SLOPES (siliconslopes.com); STARTUP GRIND UTAH (startupgrind.com/lehi); and the UTAH TECHNOLOGY COUNCIL (utahtech.org).
Torrance, CA, 65
Part of what is known as the South Bay region of the metropolitan area, Torrance has 1.5 miles of beachfront on the Pacific Ocean. The city has 30 parks and consistently ranks among the safest cities in Los Angeles County. The Del Amo Fashion Center, at 2.5 million square feet, is one of the five largest malls in the United States. As a major oil-producing region, Torrance was once dotted with thousands of oil wells and oil derricks. That’s all interesting, but the big news, shaping the defense tech ecosystem in Torrance is that manufacturing startup Hadrian Automation has raised $90 million to build a second autonomous factory there. This will be a 100,000-square-foot factory to automate manufacturing processes for aerospace and defense companies. The round was co-led by Silicon Valley venture firms Andreessen Horowitz and previous backer Lux Capital. Hadrian wants to create factories that can automatically manufacture parts for rockets, satellites, jets and drones at a rapid pace with limited human interference.