Currently VC backed companies are barred from competing on SBIRs. There is legislation currently in the works to change that. But gov funding isn’t more common currently because you legally can’t do it.
Edit: I need to amend that to say majority-VC backed companies can’t be awarded SBIRs:
Edit: I need to amend that to say majority-VC backed companies can’t be awarded SBIRs:
Source: https://www.fedscoop.com/sbir-dod-legislation-mac-thornberry...