Field of View (FOV) - December 2024

Early-Stage Aerospace & Defense Newsletter.

Author

Approach Venture
January 02, 2025

Comprised of experienced startup operators and former DoD, Approach Venture was formed to enable founding teams building the future of frontier technology to achieve their full potential. Approach supports frontier technology startups with business development, proposal writing and recruiting as well as larger organizations with technology scouting, due diligence and market intelligence.

CONTACT APPROACH to learn more. Follow us on LINKEDIN.

SMART FACTORIES.

Lead time, cost, reliability, scalability, repeatability, production throughput capacity and quality control are several drivers buyers consider when down-selecting a manufacturing partner. Said factors are also critical in America’s ability to protect our great nation—building manufacturing capability during peacetime is essential for economic resilience, national security and preparedness for future conflict. Many of the manufacturing startups who have recently received DoD and VC funding are producing roadmaps focused on automating manufacturing and production methods such as composites, castings, machining, wire harnessing, actuators and more.

A smart factory is a cyber-physical system that leverages AI and ML to analyze data, automate processes and continuously optimize production over time. Forward-thinking manufacturing startups are revolutionizing the industry by delivering parts in weeks instead of months, at a fraction of the cost—quoting 5-10x less than traditional manufacturers. These innovations empower dual-use customers to take control of lead times, whether by receiving forward deployed containerized manufacturing solutions at the edge or utilizing on-site 3D printers for ultimate flexibility and efficiency.

SPACE-BASED DATA MANAGEMENT.

Complex and expensive, managing data from space needs to be simplified as the space economy scales. It is widely known across satellite operators that the majority of data collected is unusable, but they are still footing the bill for high storage and bandwidth costs. The current solution today for data management of satellites consists of limited coverage / connectivity to ground stations.

Data centers and relays in space represent an intersection of technology, sustainability, and space exploration—which could also prove valuable during times of conflict. Key advantages include cooling efficiency, abundant solar energy, global accessibility, natural disaster (and foreign conflict) resilience as well as reduced land / resource usage (see the latest WSJ ARTICLE ON DATA CENTER BOOM). An illustrative summary of use cases is outlined below:

  1. Cloud Storage for Critical Applications

    • Storing sensitive or critical data where redundancy and security are paramount

  2. Space Exploration and Research

    • Supporting missions with high-speed, low-latency data relay and processing

  3. Low-Latency Global Connectivity

    • Integrated with satellite constellations to enhance internet services in remote areas

  4. AI and Big Data

    • Performing compute-intensive tasks where space-based power and cooling provide a significant edge

ADVANCED AIR MOBILITY.

Advanced air mobility (AAM) is rapidly transitioning from concept to reality, with electrification and sustainability at its core. Hybrid and Electric Vertical Takeoff and Landing (eVTOL) aircraft are emerging as the cornerstone of environmentally friendly, quiet, and efficient urban air mobility solutions. Autonomous technologies and AI-driven systems are enhancing safety, enabling autonomous flights and optimizing airspace management for low-altitude operations. Infrastructure development, including vertiports and charging networks, is expanding to support VTOL deployment in urban and suburban areas.

Governments and private companies are forming partnerships to accelerate AAM adoption, with applications spanning cargo delivery, air taxis and emergency response. Unified air traffic management systems are being developed to seamlessly integrate drones, VTOLs, and traditional aircraft into shared airspace. Regulatory bodies like the FAA and EASA are working to harmonize operational frameworks to ensure global scalability. Meanwhile, advances in manufacturing and fleet management are driving cost reductions, making AAM solutions more accessible for widespread dual-use applications. US Air Force, Army and Navy each have initiatives to explore and integrate AAM capabilities.

TALENT & JOBS

HERE is December’s list of active, Tier I industry talent actively seeking a new role and mission.

TALENT OPTIMISM.

Confidence in the job market is climbing as we head into 2025, especially within A&D. Professionals are increasingly open to taking calculated risks with a new administration prioritizing national security and deep-tech innovation alongside robust venture capital investment. Startups producing defense technologies stand to benefit as candidates seek meaningful opportunities to contribute to critical technologies like satellite systems, hypersonics and AI. The shifting landscape creates a unique moment for founders to attract mission-driven talent who might previously have leaned toward larger, more established organizations.

This rising confidence stems from clear policy support for the defense industrial base and a global push for cutting-edge space and national security capabilities. For many candidates, startups now offer a job and a chance to shape the future of defense and space exploration. Founders who articulate their mission and offer pathways for impact, equity, and growth will be well-positioned to win over top-tier talent eager to make bold career moves in the next 12 months.

BUSINESS DEVELOPMENT MANAGER: Step into a pivotal role as a Business Development Manager at a well-funded, fast-growing space and defense startup, where you'll spearhead partnerships with top agencies like SDA, NRO, and USSF, driving adoption of innovative satellite technologies that are transforming national security and space operations.

  • Location(s): Denver, CO or Washington, DC

VP OF ENGINEERING: A well-funded, stealth space startup led by a world-class leadership team, where you'll drive the development of modular spacecraft systems, lead a growing engineering team, and pioneer cutting-edge technologies that are redefining in-space operations and exploration.

  • Location: Denver, CO

PROPULSION ENGINEER: An emerging aerospace and defense startup backed by strong industry support, where you'll lead the design of advanced hydrazine-based propulsion systems, contribute to next-generation missile defense technologies, and drive innovation in national security.

  • Location: North LA County, CA

TRACKED SOLICITATIONS

ACTIVE.

  • The AFWERX Tactical Funding Increase (TACFI) Notice of Opportunity (NOO) is open. This program provides matching funding to help small businesses bridge the “Valley of Death” between Phase II and Phase III

    • Submission Deadline 1: Cycle 1 Packages Due January 3, 2025

    • Submission Deadline 2: Cycle 2 Packages Due March 31, 2025

  • DoD SBIR/STTR 2025.1 and 2025.A solicitations are active and include a range of technology demands across the USAF, US Navy, US Army, and MDA

    • Submission Deadline: February 5, 2025

  • DIU released a solicitation for Family of Advanced Standard Batteries for Unmanned Systems - (FASTBAT-U). This effort seeks fully commercialized, rechargeable battery cells that meet the performance needs of small unmanned aerial systems (sUAS) to include Group 1 and 2, with diverse mission requirements

    • Submission Deadline: January 9, 2025

  • The USSF is establishing Space Strategic Technology Institutes (SSTIs) to address space science and technology (S&T) challenges through a network of partnered universities. AFRL/RV released a two-step Advanced Research Announcement through the SSTI program for Advanced Remote Sensing (ARS)

    • Submission Deadline: January 10, 2025

UPCOMING.

  • NASA’s FY2025 SBIR and STTR Phase I topics have been published - these projects will fund a range of early-stage NASA R&D technology priorities

    • Release Date: January 7, 2025

  • The next AFWERX Open Topic Direct to Phase II (D2P2) focused on funding Air Force technologies

    • Release Date: February 5, 2025

  • The next SpaceWERX Orbital Prime solicitation is planned to be released Q1 2025 - more to follow as its focus is announced publicly…

VENTURE UPDATE

  • HQ: Arlington, VA

  • Founded: 2022

  • Fund III Size: $175mm

    • Lead / Stage Preference: Can Lead / Seed

  • Close Timing: December 2024

  • Investment Thesis: Frontier technologies of national security interest including aerospace, advanced manufacturing, synthetic biology, energy, AI and advanced communications

  • HQ: San Francisco, CA (Parent Susa Ventures’ HQ)

  • Founded: 2022

  • Fund II Size: $40mm

    • Lead / Stage Preference: Pre-Seed / Seed

    • Check Size: $250-$500 at Pre-Seed and $500k-$1mm at Seed

  • Close Timing: December 2024

  • Investment Thesis: Deep tech and American Dynamism—investing in areas like defense, robotics, manufacturing, climate and energy as well as space

New American Industrial Alliance (NAIA) is a multi-sector trade association dedicated to reindustrializing and ensuring America is the techno-industrial leader of the world through uniting builders, investors, and policymakers. Restoring manufacturing capacity, bolstering national security and rebuilding trust between citizens <> their institutions is mentioned within their mission statement.

Founding members include Austin Bishop, Chris Power, Aaron Slodov and Julius Krein. Notable NAIA members include Palantir, Narya VC, 8VC, Hadrian, General Catalyst, Eclipse Ventures, Oklo, Impulse Space, Tamarack Global, Y Combinator, Atomic Industries, JLL, Joby Aviation and more.

Note: NAIA's advisory board members are expected to be announced this month (January 2025).

A new initiative exists to prove to founders that VC’s LPs are not from countries like China, Russia, Iran or Cuba. Over 20 venture firms (see PUBLIC DISCLOSURE for fulsome list) have signed the Clean Capital Certification, committing to not accept funds from foreign adversaries. Created by advocacy group FUTURE UNION, the pledge warns against new technologies being exploited by authoritarian regimes. Andrew King, Future Union’s executive director, recently highlighted longstanding concerns about Chinese interference in venture capital, which could grant access to critical technologies. By signing the pledge, firms aim to safeguard US innovation and prevent adversarial influence in the private sector.

STARTUP RESOURCES

CUSTOMER RELATIONSHIP MANAGEMENT (CRM) PLATFORM

Across operator seats at a number of startups and by supporting frontier technology founders onboarding their first, we have had the pleasure of trying out and selecting Customer Relationship Management (CRM) tools for startups on numerous accounts. There is no wrong answer here but if you’re looking for a solid CRM platform that has everything you need without paying tens of thousands of dollars for Salesforce and excel just isn’t cutting it anymore, check out Attio.

ATTIO is the latest CRM tool hitting the startup ecosystem and it’s free for up to three users. This plan includes features such as real-time contact syncing and automatic data enrichment, providing essential CRM functionalities. Attio is a modern, customizable CRM platform designed to adapt as you scale. It offers features such as contact and company management, customizable sales pipelines, and integration with email and calendar systems, all within an intuitive, user-friendly interface. Think Notion meets Salesforce meets Airtable.

For startups and even investors, Attio provides several advantages:

  • Flexibility and Customization: Attio allows startups to tailor their CRM to fit specific business processes, enabling the creation of custom fields, workflows, and pipelines that align with their unique sales strategies

  • UI: With an intuitive, Notion-style interface, Attio is easy to learn and use, reducing the time required for team members to become proficient with the system

  • Scalability: Designed to scale with a startup's growth, accommodating increasing data volumes and more complex workflows as the business expands

FOUNDER TIP

KNOW AND UNDERSTAND YOUR COMPETITIVE LANDSCAPE.

Sounds simple and it is. Potential investors will need to know that you’re well aware of your competitors and understand how your roadmap / approach is differentiated to net market share—they are often betting on just one player producing any given technology. Not mentioning who your true competition is (large and small players alike) when asked during due diligence could display a lack of understanding of the market and ignorance as opposed to fooling VCs into believing your team is only one building the thing. It is also important to note that your startup is not the only one they are speaking with in the space…this is part of any investor’s process to better understand a market (receiving startup pitches = free market research) they wish to participate in and differentiation while conducting technical DD.

DID YOU KNOW?

2025 AFWERX OPEN TOPICS.

The US Space Force did not contribute funds to the next couple of rounds of Open Topic solicitations in 2025. Be sure to read if the active Open Topic calls out Air Force, Space Force or both to avoid spinning wheels on Customer Memorandums and proposals when space-focused technologies may not be funded.

Link to Last Month’s Newsletter HERE.