Field of View (FOV) - January 2025

Early-Stage Aerospace & Defense Newsletter.

Author

Approach Venture
February 03, 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.

ADDITIVE DISCOURAGED FROM SPACEX FALCON 9 RIDESHARE.

SpaceX’s newly revised Payload User’s Guide for rideshare missions underscores a growing emphasis on reliability and safety for Falcon 9 missions. One major update is the heightened scrutiny on additive manufacturing (AM). SpaceX is discouraging AM tanks unless providers engage early and invest in rigorous proof and burst tests, risking disqualification if they fail to disclose such hardware. 

Additionally, Section 5.5 introduces the “15% Rule,” which prohibits Type 2–5 pressurized tanks if non-pressure stress exceeds 15% of the overall flight load. Beyond that, updated design and test protocols place considerable constraints on non-DOT-certified pressure vessels, compelling prospective payload providers to demonstrate robust qualification and acceptance testing. These newly enforced requirements raise the bar on safety validations and pose a major challenge for smaller firms balancing cost and compliance. With these updated requirements, companies looking to fly on Falcon 9 Rideshare missions must prepare for rigorous approvals and, in some cases, revisit their design strategies.

PEACE THROUGH STRENGTH.

SECDEF Pete Hegseth delivered his first MESSAGE TO THE FORCE this month outlining his vision for the Pentagon. He stressed "Peace through Strength," vowing to restore the warrior ethos, rebuild our military and reinforce deterrence. The way we do this is by revitalizing our defense industrial base, overhauling acquisitions, ensuring the Pentagon passes a financial audit and rapidly implementing / deploying new technology.

Defending our homeland on the ground and in the sky while strengthening alliances to counter threats, particularly from China in the Indo-Pacific, is critical. The new administration is focused on ensuring the US military is the most lethal force in the world, prioritizing merit, accountability, and combat readiness. Our new SECDEF also highlighted plans for major investments in AI, drones and counter-drone systems to modernize warfare. What this means in terms of new funding opportunities for startups producing said capabilities remains unseen.

DIGITIZATION OF WAR GAMING AND PLANNING.

Modernization of strategic military planning is accelerating through the adoption of artificial intelligence (AI), machine learning, and data analytics, allowing for more sophisticated war-gaming simulations. By leveraging advanced computational models, defense organizations can assess various tactical scenarios in real time, refining responses to emerging threats. AI-driven analytics process extensive intelligence inputs to enhance situational awareness and forecast potential adversary actions.

In collaboration with private-sector partners, defense agencies are creating high-fidelity digital replicas of operational environments, incorporating cyber and electronic warfare considerations to counter evolving security challenges. While these innovations enhance military preparedness, they also necessitate robust cybersecurity measures, vigilance against excessive dependence on automation and consistent human oversight in mission-critical decisions.

TALENT & JOBS

HERE contains January’s list of active, Tier I industry talent actively seeking a new mission.

MASSIVE FEDERAL BUYOUTS TO CAUSE JOB MARKET SHAKEUP.

Last week, millions of federal employees received an email encouraging them to leave their government jobs and take “higher productivity” roles in the private sector, offering eight months of pay if they resign by February 6. With such a short decision window, many are weighing whether to take the payout and roll the dice on finding something new. Those who move fast could double dip, collecting their full buyout while starting a private-sector job immediately.

If a large number take the deal, this could trigger one of the biggest job seeker influxes since COVID. The sudden wave of experienced professionals entering the market could create both opportunities and challenges—employers will have access to fresh talent, but job seekers could face more competition than expected. With such a tight timeline, the impact will unfold quickly, and we could see a major hiring shift across multiple industries, including A&D, in early 2025.

BUSINESS DEVELOPMENT MANAGER: Join a well-funded, VLEO-focused startup as a Business Development Manager, where you'll drive strategic growth, secure high-value contracts, and play a key role in securing venture funding—working alongside top executives to shape the future of space access in a cutting-edge aerospace environment.

  • Location: Los Angeles, CA

SYSTEMS ENGINEER: Join a venture-backed space technology startup where you'll take ownership of defining, integrating, and validating avionics and electronic systems for next-generation spaceflight solutions—shaping the future of space-based imaging and data capture in dynamic orbital environments.

  • Location: Irvine, CA

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.

  • AFWERX 24.5/D Follow-on Phase II and 25.5 SBIR Open Topic Direct to Phase II (D2P2) submission period opens on February 5. In order to submit a proposal, startups are required to have an executed Customer Memorandum containing signatures from a DAF Customer, End User and Technical Point of Contact (TPOC) respectively. The new Customer Memorandum form is said to be released this week

    • Submission Deadline: March 6, 2025

  • 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. The TACFI team will host an Ask Me Anything on February 6 at 1 pm ET

    • Submission Deadline 1: Closed on 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

  • The Department of Energy (DOE) has issued its FY2025 Phase I Release 2 for SBIR and STTR opportunities. To be eligible to submit a Phase I application, you must have first submitted a Letter of Intent to the DOE Portfolio Analysis and Management System (PAMS) NLT January 14

    • Submission Deadline: February 26, 2025

  • 2025 NASA Phase I SBIR/STTR solicitations are active. The specific topics address a range of early-stage NASA R&D technology priorities

    • Submission Deadline: March 10, 2025

  • NASA TechLeap Prize is now available for registration through March 4. The challenge allows teams that can solve specific NASA Shortfall topics to compete for an opportunity to build a payload for flight

    • Submission Deadline: March 20, 2025

UPCOMING.

  • The National Science Foundation is accepting project pitches year-round. If selected to proceed, the next round of Phase I SBIR/STTR proposal submissions are due March 5, 2025

  • Army’s xTechIgnite competition opens up February 5, 2025, with 8 SBIR topics mainly focused on AI tools

  • 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: San Francisco, CA

  • Founded: 2015

  • Fund III Size: $70mm

    • Lead / Stage Preference: Can Lead / Pre-Seed to Seed

    • Check Size: $500k to $2mm

    • Target Total of Investments: 30

  • Close Timing: January 2025

  • Investment Thesis: Companies building the future of transportation, including autonomous vehicles, electric air taxis, EV charger maintenance, mobility data platforms and more

  • Ownership Target: 10%

VCs RAISING FUNDS.

CVC INTERESTS COLLIDE.

A&D Prime venture arms (known as corporate venture capital or CVCs) are investing in similar, strategic capabilities their WholeCo does not currently produce in-house as the DoD introduces initiatives to diversify away from legacy Primes for large contract opportunities. This has led to multiple CVCs co-investing in the same startups, particularly in areas like space systems, AI and advanced manufacturing. While this broadens innovation opportunities, it also creates challenges in strategic direction, IP sharing and exit strategies. There are now multiple “deep tech” startups who have received funding from multiple CVCs, highlighting the competitive investment landscape.

Something that hasn’t changed, however, is the fact that CVCs often need engineering and roadmap alignment sign-off from WholeCo before pulling the trigger on investment. For startup founders engaging with Prime venture arms, know it is not a quick process and multiple parties inside of the WholeCo organization outside of the CVC alone are involved in due diligence. Examples of CVCs include RTX Ventures, Lockheed Martin Ventures, Airbus Ventures, etc.

FOUNDER TIP

IDENTIFY DOD DECISION MAKERS & INTERESTS BEFORE PROPOSAL SUBMISSIONS.

There is a small, finite number of DoD decision makers across branches and a large number of defense-focused startups entering the ecosystem pursuing government contracts to buy down NRE and risk. As result, the mad dash leading up to and during any open solicitation window to get in touch with gov’t customer and end user decision makers is real.

Ramping your Company’s visibility to DoD decision makers, fine tuning your roadmap story and aligning with decision maker needs is pivotal to your proposal success and likelihood of being awarded a contract.

DID YOU KNOW?

25.5 AFWERX / SPACEWERX OPEN TOPIC SOLICITATION.

A new Customer Memorandum form will be released soon. Changes from the prior version includes the removal of a work plan being required within the Memo. There is also said to be more information released on how to structure milestone schedule and payments to avoid longer contract negotiations.

Link to Last Month’s Newsletter HERE.