Entrepreneurs take notice: Uncle Sam wants a piece of your startup

The federal government signaled a new direction in federal funding this week when it announced plans to put as much as $150 million into a private semiconductor startup. Instead of a grant or a loan, the government would take an equity stake.

It’s a meaningful departure from how federal funding has traditionally operated. For years, federal R&D support came structured as non-dilutive grants and Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards that didn’t require equity concessions.