Space executives took the stage at TechCrunch Disrupt on Monday to talk about the challenges and opportunities of building dual-use technology, or technology that has a defense and commercial use case.
However, the dual-use strategy may be difficult for emerging startups, because they run the risk of diluting their focus by trying to sell to both the Department of Defense (DOD) and commercial companies, warned Evin Rogers, CEO of True Anomaly. True Anomaly, which develops software and hardware to enable mobile satellite operations, is “not a space company,” he said. “We are a defense company.”
But staying focused can be a challenge for startups if their investors aren’t fully aligned with their mission, he said. “When investors start pushing the dual-use thesis… that can dilute the focus, especially at an early stage, and it just takes very open and honest conversations with investors and very careful selection of who’s around the table,” he said.
However, with the rapid industrialization of space, there are more emerging business opportunities for startups.
“There are no clear, clear lines between commercial and government in space,” said Tim Solms, CEO of Slingshot Aerospace. “Dual usage is on us. … There’s not just defensive or commercial operations right now. There’s a lot of mix there, so you have to be able to move between both.”
They both agreed that “dual-use” is a “private” term, Rogers said, especially now that space is a highly contested domain.
For startups looking to sell to the government, there has been a significant effort within the Department of Defense to work with small companies and purchase technologies outside of traditional defense and aerospace. As Debra Emmons, the aerospace company’s chief technology officer, said on stage, the government has supported the Defense Innovation Unit, the Strategic Capital Office, and other financing mechanisms to bring private and public money together.
Many of these programs are intended to help early-stage companies, however, a dual-use strategy can serve as a hedge against the government’s relative slowness in signing new companies to standard programs.
“I think we’re looking at a place where we need to bring more information into those later stages,” Emmons said.
But startups that want to work with the government need to understand that there will be additional hurdles to jump, and more relationships and trust must be built. Building relationships is especially important; To some extent, the winners in defense technology are those companies that can engage with government most effectively, not necessarily those with the best technology.
“Technology is stakes on the table,” Rogers said. “Talent is the table stakes. What you have to master is a go-to-market strategy that starts with operational advocacy and clarity about operational requirements.
Solms agreed: “First, focus on the mission, and understand the mission. You’re not arriving at a point solution. You’re not trying to solve something; you’re trying to support a mission.”
(Tags for translation)Slingshot Aerospace
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