STRATFI and TACFI both exist to solve one problem: a small business finishes a promising SBIR Phase II, and then falls into the 'valley of death' before the Air or Space Force turns it into a real program. Both add money on top of your existing SBIR work. The difference is size — and the math you have to satisfy to get it.
TACFI (Tactical Funding Increase) is the smaller of the two, roughly $375K to $2M in SBIR funds over about two years. The rule is a straight 1:1 match: for every dollar of TACFI SBIR money, you must line up at least one dollar of other funding — non-SBIR government dollars, or private capital. Think of TACFI as extending a strong Phase II so it can close a specific capability gap.
STRATFI (Strategic Funding Increase) is the transition-to-scale tool: roughly $3M to $15M over about four years. The match is heavier and more flexible. In the common structure, every $1 of SBIR is matched by $2 of other government funds — or you bring $1 of government plus $2 of private money. That's why founders chasing STRATFI spend as much time on their customer and their investors as on their technology.
Neither is a grant you apply for cold. You need an active or recent Phase II, a government end user who wants the capability, and committed matching money before the Notice of Opportunity opens. The matching money is the whole game — the program is designed to multiply capital that others have already agreed to put in.
Say you want a $9M STRATFI. Under the $1 SBIR : $2 government structure, roughly $3M is SBIR money and you have to show ~$6M of other committed government funds. Under the $1 SBIR : $1 government : $2 private structure, you're lining up both a government program office and private investors. Either way the arithmetic forces you to answer the real question early: who else, besides AFWERX, is willing to put money behind this? TACFI's 1:1 is gentler, which is exactly why teams often use it as a stepping stone toward a later STRATFI.
Before you commit matching dollars, simulation can prove the design margins that make a program office want to co-fund you — cheaper than another prototype build.
See if you qualify for an Ansys eval The MVP playbook →The most common mistake is treating the match as a formality to sort out later. It isn't. AFVentures is effectively underwriting demand — proof that a customer and, often, private investors believe in the technology. Start those conversations the day you win Phase II, not the week the Notice of Opportunity drops. For the mechanics of the underlying awards, see how to apply to AFWERX Open Topic, and for the newest and largest tier, read up on the $30M Strategic Breakthrough award.
Full official details live at the AFWERX STRATFI/TACFI page.
Official sources: AFWERX STRATFI/TACFI · AFWERX FAQ: STRATFI vs TACFI · SpaceWERX STRATFI/TACFI. Figures change; confirm on the official page before relying on them.
