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2329361

Cooperative Agreement

Overview

Grant Description
Sbir phase II: biological production of paraxanthine, a caffeine replacement -the broader impact of this small business innovation (SBIR) phase II project is the development of a biomanufacturing process to produce paraxanthine for use as a caffeine alternative in beverages and foods. For a large percentage of the population, caffeine is known to have negative side effects, including anxiety, jitteriness, and negative effects on sleep quality.

In the case of anxiety, an estimated 40MM Americans suffer from an anxiety disorder, and the consumption of caffeine in coffee, energy drinks, and other beverages is known to exacerbate stress. Paraxanthine is an active metabolite of caffeine that has similar stimulatory qualities but with potentially fewer side effects. Additionally, paraxanthine has a shorter half-life (i.e., it is cleared from the body faster) as compared to caffeine.

Thus, paraxanthine may play a role in contributing to improved sleep quality and mental wellness. The proposed project aims to develop a cost-efficient, biological method to manufacture paraxanthine. Producing paraxanthine at low cost is currently a significant technical challenge. The compound is only found naturally in substantial quantities within the human body as the result of caffeine metabolism; it is not produced in plants in above trace amounts.

Furthermore, synthetic methods to produce paraxanthine are complex and relatively expensive. The research goals of this phase II project are to develop and optimize a process using an engineering enzyme to fermentatively produce paraxanthine at high yields and with high volumetric productivities. The approach seeks to employ real-time bioreactor monitoring, enabling rapid iteration of the experimental design-build-test cycle.

If successful, this technology will not only deliver an efficient paraxanthine production process, but it also establishes a novel, scalable platform that can be applied to improve upon other food ingredients, pharmaceuticals, and industrial chemicals. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the foundation's intellectual merit and broader impacts review criteria.

- Subawards are not planned for this award.
Awardee
Funding Goals
THE GOAL OF THIS FUNDING OPPORTUNITY, "NSF SMALL BUSINESS INNOVATION RESEARCH PHASE II (SBIR)/ SMALL BUSINESS TECHNOLOGY TRANSFER (STTR) PROGRAMS PHASE II", IS IDENTIFIED IN THE LINK: HTTPS://WWW.NSF.GOV/PUBLICATIONS/PUB_SUMM.JSP?ODS_KEY=NSF23516
Awarding / Funding Agency
Place of Performance
San Leandro, California 94577-1260 United States
Geographic Scope
Single Zip Code
Analysis Notes
Amendment Since initial award the End Date has been extended from 05/31/26 to 05/31/28 and the total obligations have increased 50% from $1,000,000 to $1,500,000.
Rarebird was awarded Cooperative Agreement 2329361 worth $1,500,000 from National Science Foundation in June 2024 with work to be completed primarily in San Leandro California United States. The grant has a duration of 4 years and was awarded through assistance program 47.084 NSF Technology, Innovation, and Partnerships. The Cooperative Agreement was awarded through grant opportunity NSF Small Business Innovation Research / Small Business Technology Transfer Phase II Programs (SBIR/STTR Phase II).

SBIR Details

Research Type
SBIR Phase II
Title
SBIR Phase II: Biological production of paraxanthine, a caffeine replacement
Abstract
The broader impact of this Small Business Innovation (SBIR) Phase II project is the development of a biomanufacturing process to produce paraxanthine for use as a caffeine alternative in beverages and foods. For a large percentage of the population, caffeine is known to have negative side effects, including anxiety, jitteriness, and negative effects on sleep quality. In the case of anxiety, an estimated 40MM Americans suffer from an anxiety disorder, and the consumption of caffeine in coffee, energy drinks, and other beverages is known to exacerbate stress. Paraxanthine is an active metabolite of caffeine that has similar stimulatory qualities but with potentially fewer side effects. Additionally, paraxanthine has a shorter half-life (i.e., it is cleared from the body faster) as compared to caffeine. Thus, paraxanthine may play a role in contributing to improved sleep quality and mental wellness. The proposed project aims to develop a cost-efficient, biological method to manufacture paraxanthine. Producing paraxanthine at low cost is currently a significant technical challenge. The compound is only found naturally in substantial quantities within the human body as the result of caffeine metabolism; it is not produced in plants in above trace amounts. Furthermore, synthetic methods to produce paraxanthine are complex and relatively expensive. The research goals of this Phase II project are to develop and optimize a process using an engineering enzyme to fermentatively produce paraxanthine at high yields and with high volumetric productivities. The approach seeks to employ real-time bioreactor monitoring, enabling rapid iteration of the experimental design-build-test cycle. If successful, this technology will not only deliver an efficient paraxanthine production process, but it also establishes a novel, scalable platform that can be applied to improve upon other food ingredients, pharmaceuticals, and industrial chemicals. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.
Topic Code
BT
Solicitation Number
NSF 23-516

Status
(Ongoing)

Last Modified 9/18/25

Period of Performance
6/15/24
Start Date
5/31/28
End Date
33.0% Complete

Funding Split
$1.5M
Federal Obligation
$0.0
Non-Federal Obligation
$1.5M
Total Obligated
100.0% Federal Funding
0.0% Non-Federal Funding

Activity Timeline

Interactive chart of timeline of amendments to 2329361

Transaction History

Modifications to 2329361

Additional Detail

Award ID FAIN
2329361
SAI Number
None
Award ID URI
SAI EXEMPT
Awardee Classifications
Small Business
Awarding Office
491503 TRANSLATIONAL IMPACTS
Funding Office
491503 TRANSLATIONAL IMPACTS
Awardee UEI
V79JVAZFQCX3
Awardee CAGE
8LZD4
Performance District
CA-12
Senators
Dianne Feinstein
Alejandro Padilla
Modified: 9/18/25