Launch TN’s 32 SBIR/STTR Matching Fund companies surpass $1 billion in economic impact
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 Research, Technology, Innovation report.
From the robust innovations in carbon fiber, advanced manufacturing, and cleantech in East Tennessee to the emergence of biotech and healthcare startups in West Tennessee, the state had a significant presence in the fiscal year 2026 Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards. And Launch Tennessee’s matching fund for those awards was a big part of that.
Launch Tennessee announced 32 companies were selected for its FY26 SBIR/STTR Matching Fund. The economic impact of those companies surpassed $1 billion in total economic impact, which was measured through follow-on capital raised, additional grants leveraged, and wages generated across the State of Tennessee.
The SBIR and STTR programs are highly competitive federal programs that help domestic small businesses engage in research and development to enhance their commercialization efforts.
Through the SBIR/STTR Matching Fund, Launch Tennessee helps Tennessee companies compete more effectively for those 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.
Historic programs “firsts.”
There are 16 companies from East Tennessee, and seven companies from the Innovation Crossroads program at Oak Ridge National Laboratory.
The list also contains 14 first-time SBIR/STTR awardees, 10 rural companies, five companies based in West Tennessee, and four companies led by veterans.
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.
According to LaunchTN, this growth ranks Tennessee as the sixth fastest growing SBIR state nationally and the fastest growing among the 11 peer states analyzed in the state’s recent RTI report, Scaling Up: Benchmarking and Recommendations for Growing Tennessee’s Tech-Based Economy.
“This milestone confirms what we have long believed about Tennessee entrepreneurs,” said Lindsey Cox, CEO of LaunchTN. “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.”
Nearly thirty percent of this year’s awards were made to companies in LaunchTN’s active investment portfolio (InvestTN) or pipeline.
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.
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