Projects

The Compass Pilot: Increasing Participation in Federal Seed-Funding Programs

How can U.S. federal seed-funding programs better engage entrepreneurs from underrepresented communities?

Partners & Funders

Photo by Christina | @wocintechchat

The Project

In collaboration with a diverse cohort of entrepreneurial innovators from historically underrepresented communities, the Compass Pilot will co-create and pilot a series of tools and resources to meaningfully increase the involvement of underrepresented groups in accessing federal seed funding to bring their innovations to market.

The Outcome

The goal of this project is to yield a more inclusive candidacy for transformative funding opportunities in STEMM-based entrepreneurship — ultimately supporting the development of a globally competitive STEMM workforce and scientific innovations that benefit diverse American communities and society as a whole.

The Compass Pilot: Increasing Participation in Federal Seed-Funding Programs

Photo by Christina | @wocintechchat
How can U.S. federal seed-funding programs better engage entrepreneurs from underrepresented communities?

Partners & Funders

The Project

In collaboration with a diverse cohort of entrepreneurial innovators from historically underrepresented communities, the Compass Pilot will co-create and pilot a series of tools and resources to meaningfully increase the involvement of underrepresented groups in accessing federal seed funding to bring their innovations to market.

The Outcome

The goal of this project is to yield a more inclusive candidacy for transformative funding opportunities in STEMM-based entrepreneurship — ultimately supporting the development of a globally competitive STEMM workforce and scientific innovations that benefit diverse American communities and society as a whole.

Project Background

Innovation in science, technology, engineering, mathematics, and medicine (STEMM) plays a critical role in addressing societal challenges, such as healthcare disparities, environmental risks, and economic inequalities — yet members of the communities most affected by these societal challenges tend to participate less in federal seed-funding programs than is relative to their share of the U.S. population.

The underrepresentation of certain groups (including people from indigenous communities, people of color, women, and people with disabilities, among others) in STEMM funding programs can be attributed to a variety of factors, including generational wealth gaps, obstacles to higher education, and segregated social networks. Structural biases within funding programs’ outreach, application, and review processes may also present a significant barrier to access.

While this is not an exhaustive list of all the roadblocks facing diverse teams attempting to bring their innovations to market, these observations provide the impetus for the proposed work. 

Over 20 months, the Compass Pilot will identify and develop a set of rigorously researched, co-designed, and piloted concepts that are ready to be operationalized at scale.

NSF-timeline2

Project Timeline

Over the course of 20 months, this project will involve researching, co-designing, and piloting concepts for increasing entrepreneurs’ participation in federal seed-funding programs.

What We Found

During research, we engaged innovators, experts who support innovators, and federal staff with expertise in seed funding to better understand the challenges that underrepresented innovators face when developing their business ideas.

As in all Public Policy Lab projects, we took a human-centered design approach, conducting qualitative research with participants to learn more about their experiences and ultimately generate fuel for the design process.

Participant Sample
We spoke with participants across 23 states, including:

  • Innovators who have never received federal seed funding, have generated $200K or less in revenue, and have a team of five employees or less. We spoke with innovators from varied backgrounds, including people who identified as Black, Native American, Latino/a, Asian, and White and located in priority areas.
  • Subject-matter experts with expertise in areas where innovators need support, such as technological innovation, commercial viability, and social impact. We also spoke with innovators who have received federal seed funding.
  • Ambassadors who work at organizations supporting early-stage innovators in priority areas.
  • Federal staff across three federal agencies with expertise in federal seed funding programs and initiatives.

Advisory Committee
To deepen the value and utility of this project, PPL assembled a diverse advisory committee to bring their expertise and perspective to this work. We interviewed a pool of subject-matter experts and ambassadors who provided insight into their organizations and innovation ecosystem. From this pool, we identified a set of organizations that touch on vital aspects of the innovator journey.

What We Heard
During research, participants shared their experiences across the journey stages of seed-funding: from getting started with an idea, to learning about funding, to applying for funding. The following takeaways are samplings of what we heard from our pool of participants. We collect these takeaways to generate fuel for the design process. They are not intended to represent objective truths nor are they statistically representative.

  • When getting started, the cultural norms and external circumstances of innovators’ environments play a large role in the way they perceive and pursue innovation. Unsurprisingly, limited access to education and wealth can quell would-be innovators before they start.
  • When learning about funding, many innovators struggle with finding opportunities. In communities with many existing innovators, it can be easier for information to travel and for people to be referred to opportunities but these pathways are less paved in communities that are underrepresented in innovation. Innovators also struggle with assessing the opportunity–many innovators self-disqualify because they believe they don’t meet the requirements.
  • When applying for funding, it can be difficult for innovators to navigate the applications. Upon first glance, it may appear that applications require more time and resources than innovators can spare.

What We'll Design

In the coming months, we’ll use our findings from research to fuel the creation of new design concepts. These concepts will be co-designed with a cohort of 15 innovators from underrepresented groups. Potential prototypes could include a social platform that leverages network of successful entrepreneurs, interactive or static digital learning tools, structured coaching sessions, experiential learning activities, new outreach materials or strategies, or other products or services.

After we develop initial prototypes, we will work with the co-design cohort to test and further iterate on the prototypes. Next, the tools will be pilot-tested by a cohort of 25 additional innovators and evaluated, using lean impact methods, to assess efficacy and value. We will also share a set of opportunity areas for addressing barriers related to broader application procedures and systems.

Project Implementation

Pilot learnings will be incorporated into a revised set of tools that will be implemented at scale.  Release of this work is expected in 2025.

 
For Further Information

If you’re interested in receiving periodic updates about this project’s progress, sign up for our newsletter here. In the coming months, we will be providing additional opportunities to get involved.

To learn more about the Compass Pilot, please see the National Science Foundation’s project announcement.

For additional inquiries, please contact our project team at .

This work is supported by the National Science Foundation, Award Number 2331195.

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