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⚔️ How Dual-Use Technology Can Accelerate Your Early-Stage Startup

Serving both the private and public sectors can dramatically increase your market share and appeal to investors

Author

Arjay Ruggles
May 02, 2024

Fundraising Tip of the Week

⚔️ How Dual-Use Technology Can Accelerate Your Early-Stage Startup

Why Dont We Have Both GIF

The rise of dual-use technology represents a convergence of public and private sector interests, offering solutions with applications across diverse industries. In today’s environment, government agencies, particularly in defense and national security, are increasingly interested in dual-use innovations. 

🇺🇸 Why the US Needs Private Partners

Russia’s large-scale invasion of Ukraine was a watershed moment for defense tech. This tragedy reminded the world of the importance of U.S. military readiness, and as a result, government agencies are increasingly interested in dual-use innovations.

The government values these dual-use technologies for their potential to leverage commercial success into government partnerships and investments, reducing risk for both parties and fostering innovation.

Founders working on products or services that can serve a dual purpose within the private and public sectors should carefully consider if a government contract is right for them. Because if there is one customer who will never be short on cash, it’s the United States Defense Department.

☠️ Avoiding the “Valley of Death”

Navigating government contracts can be challenging, often leading to financial strain called the "Valley of Death". This is because negotiating a government contract can take months and in some cases years. During this time, founders must find other sources of capital to fund operations and venture capital provides one such path. Additionally, founders can apply for Small Business Innovation Research (SBIR) grants, which can also provide crucial funding and support during this phase.

🤝 Venture Capital Can Be a Lifeline

Collaborating with experienced VCs and advisors can provide startups with essential guidance and resources for success in this burgeoning sector. Overall, the dual-use technology landscape presents both challenges and opportunities for founders and investors alike, promising significant rewards for those who can effectively navigate its complexities.

By partnering with the right firm, founders can rely on VCs deep pockets, well-connected network, and industry expertise to figure out how their company can work with government agencies. By partnering with the right people, founders may quickly find themselves on the pathway to building a unicorn.

Investors You Should Know

✨ Featured Investor of the Week

Each week we highlight an early-stage investor that is actively writing checks to Pre-Series A companies. If you’d like to request a warm introduction, reply to this email or click the “Request Intro” button!

Note: We use a double opt-in system to ensure warm introductions; you will only receive a reply if an investor has accepted your request.

Sherman Williams 

Managing Partner, AIN Ventures

📍Location: NYC, New York
📈 Stage: PreSeed - Seed
💵 Check Size: $100K - $750K

Sherman has an extensive history investing in dual-use technology subsegments, such as space technology and healthcare technology. Sherman has been the VC-in-Residence to several Techstars programs and is also a Kauffman Fellow ('26).

Prior to becoming an early-stage investor, Sherman started his career as a Naval Intelligence Officer. Afterwards, he gathered six years of financial transaction experience as a Healthcare Technology M&A Investment Banker.

Sherman’s Fun Fact: I have been training Brazilian Jiu Jitsu for many years.

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