Stacking non-dilutive awards for ocean tech, meaning money that takes no equity, works when each award funds different work. The SBIR program FAQ says a small business "may not perform the same or essentially equivalent work under more than one contract or grant," and that collecting funds more than once for the same work is fraud.
Can you stack non-dilutive awards on the same project?
Yes, provided you can show each dollar buys a different deliverable. The safe order is a prize or small award first, then SBIR Phase I, then Phase II, then non-SBIR money for commercialization. Think of one technology as several work packages: a sensor prototype, a field test campaign, a data pipeline, a pilot with an operator. A prize might cover the first, a Phase I the feasibility study, and a Phase II the development work that follows.
The test is simple. If a reviewer put two proposals side by side, could they point to separate tasks, milestones and budgets? If the answer is "it's the same plan with a different title," you have an overlap problem. Write down your work packages before you apply anywhere, and reuse them in every budget.
How do SBIR Phase I, II and III work?
Phase I tests feasibility, Phase II funds development, and Phase III is commercialization with no SBIR money. NOAA's SBIR office describes Phase I as proof of concept studies, and says that for NOAA only Phase I winners are considered for Phase II. It also says that in Phase III "the small business must find funding in the private sector or other non-SBIR federal agency funding."
That structure sets your stacking order. Phase I comes before Phase II by design, and Phase III money has to come from somewhere else. For a fuller walkthrough of the process, see our guide to SBIR grants for ocean tech startups.
Typical award sizes and timelines by agency
Caps and durations differ by agency, which is why Phase I is quoted anywhere from $190,000 to $305,000. Each agency sets its own ceiling and schedule, and the figures below are stated maximums, not typical awards.
| Funding type | Size cap | Timing |
|---|---|---|
| NOAA SBIR Phase I | Up to $190,000 | Up to 6 months |
| NOAA SBIR Phase II | Up to $690,000 | Up to 24 months |
| NSF SBIR/STTR Phase I | Up to $305,000 | Decision 5–7 months after deadline |
| NSF SBIR/STTR Phase II | Up to $1,250,000 | Two years |
| DOE SBIR Phase I | $200,000 or $250,000 | 6–12 months |
| DOE SBIR Phase II | $1,100,000 or $1,600,000 (+$50,000 for commercialization) | 2 years |
The NOAA figures come from the NOAA page above. The NSF figures come from NSF's review and decision page, and the DOE figures from DOE's SBIR tutorial and a DOE topics webinar. DOE describes Phase I as exploratory R&D to prepare for a substantial Phase II project, and Phase II as focused on prototype, demonstration and commercialization.
Timing matters as much as size. NSF says proposals are reviewed 1–3 months after the deadline, may go through due diligence at 3–5 months, and are accepted or declined 5–7 months after the deadline. NSF also reports historical Phase I funding rates between 10% and 20%. So if you apply to NSF in the same month you start a 6-month NOAA Phase I, the NSF answer arrives around month 5 to 7, right as that Phase I ends. Plan for both a yes and a no at that point.
Which agencies fund ocean tech, and when do solicitations open?
NOAA's FY27 SBIR funding cycle begins in Fall 2026, according to NOAA's SBIR page, which asks applicants to monitor its funding opportunities listing. NSF and DOE also run SBIR/STTR programs that can fit ocean work, such as DOE's water power topics. Dates differ by agency and topic, so check each listing directly.
SBIR eligibility rules that affect stacking
Ownership, company size and principal investigator employment rules apply to SBIR, so check them before other funding or investors change your cap table. In general, SBIR targets U.S. small businesses, and agencies look at who owns the company and whether the lead researcher works primarily for the business. A university-employed researcher who leads your science, or an investor who takes a large stake, can create a problem. Read the specific solicitation for each rule, since agencies word them differently.
A prize or grant that takes no equity will not change ownership. An accelerator or later investment might, so sequence those with eligibility in mind.
What Phase III means for combining funding
Phase III needs non-SBIR money, and it carries rights that make it worth planning toward. SBIR.gov's data rights tutorial lists them, including "the right to sole-source contracts" and "exemption from SBA size standards for a procurement." The Acquisition Gateway adds that agencies may make Phase III awards for work that "derives from, extends, or completes" earlier Phase I or II efforts.
SBIR.gov also says combining results of multiple Phase I and II efforts into one Phase III contract is allowed, but guidance varies, so you have to check with each agency. For an ocean company, a navy, coast guard or NOAA operational buyer could be that Phase III funder.
How Ocean Exchange prizes work
Ocean Exchange is a Fort Lauderdale nonprofit that runs the Neptune and Collegiate Awards, and it alone decides them. Because a prize is a one-time award, it usually fits as an early, distinct work package such as a field trial or a pilot build. Check Ocean Exchange's current call for eligibility, deadlines and award terms, and see how Ocean Exchange works for the application path.
Do accelerators and prizes take equity or restrict other awards?
Terms vary, so read each one for equity, IP, exclusivity and use-of-funds language before you sign. Some programs take equity and some do not. Even a no-equity award can restrict how you spend it or what you disclose.
Before accepting anything, check these points:
- Whether the program takes equity, warrants or a convertible note.
- Who owns IP developed with the money, and whether the funder gets a license.
- Whether the money is restricted to named activities that another award already covers.
- Whether you must report or get consent before taking other funding.
- Whether exclusivity or first-look rights could block a later investor or federal buyer.
NOAA says SBIR is "not a loan," meaning no repayment. Compare that clean structure against any other offer.
If a prize does not come through, rework the sequence and move to the next step, because most prizes are competitive and a miss does not close the other doors. Our guide on what to do after missing an Ocean Exchange award covers that, and Founding Blue helps founders plan the order of their funding and prepare applications, though Ocean Exchange alone makes its award decisions, as you can see on the Founding Blue site.