Space executives took the stage at TechCrunch Disrupt on Monday to talk about the challenges and opportunities of building dual-use technologies, that is, technologies with both defense and commercial use cases.
But dual-use strategies can be tricky for young startups to manage. That’s because you risk diluting your focus by trying to sell to both the Department of Defense (DOD) and commercial companies. True Anomaly CEO Even Rogers warned: True Anomaly, which develops software and hardware that enables mobile satellite operations, “is not a space company,” he said. “We are a defense company.”
But maintaining focus can be difficult for startups if investors aren’t fully aligned with the mission, he said. “When investors start pushing the dual-use theory, especially in the early stages, the focus can be diluted and it requires very open and honest dialogue with investors and very careful selection of who is around the table,” he said.
However, the rapid industrialization of space is creating more commercial opportunities for startups.
“In space, there is no clear line between commerce and government,” said Slingshot Aerospace CEO Tim Solms. “Dual use is upon us. … There are currently no defense-only or commercial-only operations. There’s a lot of mixing out there, so you need to be able to navigate both.”
Both men agreed that the term “dual use” was, as Rogers put it, “peculiar.” This is especially true now that space is a highly competitive area.
For startups looking to sell to the government, there has been a huge effort within the Department of Defense to partner with smaller companies and procure technologies outside of the traditional defense and aerospace sectors. As Debra Emmons, CTO of The Aerospace Corporation, said on stage, the government has put in place the Department of Defense Innovation, the Office of Strategic Capital, and other funding mechanisms to bring together private and public funds.
However, since many of these programs are intended to support businesses in their early stages, a dual-use strategy could be a means of avoiding the government’s relative slowness in enrolling new businesses into its programs of record.
“I think we’re looking at areas where we really need to bring more in later stages,” Emmons said.
However, startups that want to work with the government need to understand that there are additional hurdles to jump and more relationship building and trust to build. Building relationships is especially important. To some extent, the winner in defense technology will not necessarily be the company with the best technology, but rather the company that can navigate government most effectively.
“Technology is table stakes,” Rogers said. “Talent is table stakes. What you need to master is operational advocacy, a go-to-market strategy that starts with clarity on operational requirements.”
Solms agreed: “The first thing is to focus on the mission and understand the mission. Don’t look for point solutions. You are not trying to solve the problem. You’re trying to support the mission.”
