
Overview of STRATFI/TACFI
The STRATFI/TACFI 25.1 program is now open and will close on September 18, 2024, at 12 PM ET. This program is exclusively available to AFWERX Phase II winners and is designed to help federally funded companies bridge the innovation “valley of death.” The Air Force recognizes that the initial funding startups receive often falls short of getting their innovations to market or developing a viable product. STRATFI/TACFI aims to address this gap by offering up to $60 million in funding through a match funding initiative. This significant support is intended to propel innovative technologies from early development to successful deployment within the U.S. Air Force.
Background on AFWERX
AFWERX is the innovation arm of the U.S. Air Force, established to foster a culture of innovation within the Air Force community. Founded in 2017, AFWERX aims to solve the Air Force’s toughest challenges by leveraging expertise and technology from both within the military and external sources, including private industry, academia, and other government agencies. Key initiatives under AFWERX include AFVentures, AFWERX Challenges, and the Spark Tank competition, all aimed at driving innovation and collaboration.
AFWERX Phase I funds provide $75,000 for SBIR and up to $110,000 for STTR. To secure a Phase II award, companies need both a Memorandum of Understanding (MoU) from an interested Air Force customer or end-user and acceptance by the Air Force SBIR program. Phase II funding offers a maximum award of $1.25M for SBIR and $1.8M for STTR.
Past Years' STRATFI/TACFI Funding Data
Let’s take a look at some of the impressive funding achievements from previous years:
2020
18 STRATFI enhancements awarded
$101M in SBIR funds
$102M in matching government funds
$342M in matching private funds over a four-year period of performance
2021
17 STRATFI enhancements awarded
103 TACFI enhancements awarded
$201M in SBIR funds
$177M in matching government funds
$302M in matching private funds over a four-year period of performance
2022
89 selected (22 STRATFI / 67 TACFI)
$307M in SBIR funds
$449M in matching government funds
$465M in matching private funds over a four-year period of performance
2024
158 selected (30 STRATFI / 128 TACFI)
$583M in SBIR funds
$703M in matching government funds
$620M in matching private funds over a four-year period of performance
How the TACFI Program Works
TACFI provides funding between $375,000 and $1.9M from the SBIR component. To be eligible for TACFI, you’ll need to secure additional matching funds from investors or another government body, effectively doubling the total amount. For instance, if you get $1M from TACFI, you'll need an additional $1M in matching funds, bringing the total to $2M. The max funding for TACFI is is $3.8M total SBIR and match contribution.

How the STRATFI Program Works
STRATFI offers funding between $3M and $15M from AFWERX, the SBIR component. You need to match this funding with funds from another government entity at a ratio of 1:2 (AFWERX: separate government entity) or from both Gov and private sector match funding (e.g. an investor), at a ratio of 1:1:2 (AFWERX: separate government body: private sector). For example, if you receive $5M from STRATFI and it’s matched 1:2, the total funding would be $15M. The max funding for STRATFI if all three entities participate is $60M!
Common STRATFI/TACFI Application Mistakes
To improve your chances of success, AFWERX recommends to avoid these common mistakes:
Submitting incomplete packages
Omitting elements of the Capability Package
Missing or incorrect End-User/Customer/TPOC/SIPR/Staff Function POC information
Using incorrect POCs
Incorrectly reporting funds match (e.g., Phase III’s, ineligible third party)
Misaligning milestones and funding
Using incorrect document signatories
Providing inaccurate or ineligible Phase II contract numbers
Having inconsistent information across documents
Issues with finance or contracting acceptance
Misunderstanding contract award responsibility
Using outdated forms (make sure to check for PY25.1 in the header)
Getting the STRATFI/TACFI 25.1 Submission Done Right
To make sure your submission meets all requirements, AFWERX requires the following:
Your company must qualify as a Small Business Concern (SBC) and be eligible for SBIR/STTR awards.
You should be currently active in SBIR/STTR Phase II or have completed it within the past two years.
The project shouldn’t have previously been awarded a Sequential Phase II.
You must have been working on Phase II for at least 90 days.
You should not be currently working on a prior STRATFI effort.
All work must be conducted within the United States.
You need to meet the minimum matching or investment requirements.
You must secure an End-User & Customer Collaboration Agreement.
We hope you found this helpful. Akela Consulting is happy to talk it over with you and discuss STRATFI/TACFI or other SBIR funding programs for your company. Akela is a boutique SBIR/STTR grant writing company. We work closely with our clients to discover the best opportunities across the different federal agencies.