http://www.space.com/12572-nasa-innovative-space-technology-funding.html

On the one hand, this is pretty awesome.  NASA is putting research money into some pretty innovative (and unusual solutions).  On the other hand, it’s only $100k per grant.  That’s Angel level investment, but for working with engineers, hardware and proof of concepts, it seems a little small.

BUT, what it does do (as a small startup) is give you a kind of legitimacy that you can then take to other, larger investors.  You can inform them that NASA is one of your backers, which then means you’ve got a market for your product.  It’s got a home if you can make it work like you think it will.  Having a market in-hand when you go to speak with investors and Angels makes a huge difference, whether you are building mobile apps or inventing a way to finally clear some of our debris from space.