Field of View (FOV) - July 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 across fundraise, business development, proposal writing and recruiting efforts as well as larger organizations with technology scouting, due diligence and market intelligence.

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APPROACH FEATURED IN TECHCRUNCH

GOLDEN DOME MAY NOT BE THE GOLDEN TICKET FOR STARTUPS.

The Pentagon’s $151 Billion Golden Dome initiative aims to drive a decade of missile-defense innovation, but its FAR-based contracting approach favors established Primes. Approach Venture and other industry voices highlight the disconnect between the program’s rigid compliance requirements and the pace of Silicon Valley innovation. For emerging defense companies (excluding several exceptions), securing Golden Dome funding will come from subcontracting and teaming arrangements with defense incumbents.

EMERGING TRENDS

PRIME-ENABLED AUTONOMY SYSTEMS TAKE FLIGHT.

Northrop Grumman has rolled out its first cohort of autonomy-focused partners (Applied Intuition, Autonodyne, Merlin, Red 6, Shield AI, and SoarTech) within the Beacon open testbed ecosystem, using the Scaled Composites Model 437 Vanguard platform for real-world flight demonstrations. Beacon is structured as a modular, open environment that accelerates integration of third-party autonomy and AR systems into mission-relevant testing, reflecting a strategic shift from closed architectures toward collaborative innovation. This model offers primes a way to engage with startups on autonomy development while retaining control over flight systems, compliance, and system validation. For startups, Beacon provides a high-impact path to flight-validated performance and exposure to government stakeholders, potentially accelerating adoption and scale.

Expanding on this ecosystem approach, Joby Aviation and L3Harris have entered into a partnership to develop a gas-turbine hybrid VTOL aircraft for defense missions optionally piloted or fully autonomous intended for contested logistics, electronic warfare, and counter‑UAS operations. Flight testing is slated for fall 2025 with operational demonstrations expected in 2026, marking a coordinated move to missionize a commercial platform for defense use. This collaboration underscores a growing pattern: primes are leveraging their scale and integration capabilities to bring in startup or emerging vehicle platforms and build them out for military applications. Taken together, these programs signal a new paradigm where primes become ecosystem builders creating developer-friendly testbeds and missionization pathways that bring dual-use innovation directly into defense programs.

CONTRACTING BOTTLENECKS DELAYING STARTUP INNOVATION.

While AFWERX and SpaceWERX continue to advance dual-use technologies, many startups are facing significant post-award delays, particularly with Phase II contracts as well as both TACFI and STRATFI funding. In multiple recent cases, teams have reported 6+ month lags between award notification and contract kickoff, stalling hiring, R&D execution, investor follow-on and the deployment of technologies critical to our nation’s security.

Relatedly, NSF SBIR/STTR Phase II awards are increasingly becoming recognized by investors and founders as having some of the longest lead times in the ecosystem, with delays often stretching 6 to 8 months, well beyond desired administrative timelines. These extended gaps disrupt startup operations, impair revenue forecasting and delay external capital infusions.

Despite growing calls for accelerated transition pathways, the contracting pipeline remains a major bottleneck, forcing founders to bridge multi-month funding gaps with internal reserves or early investor support. In many cases, even a successful award no longer guarantees momentum as Technical Points of Contact (TPOCs) are stretched thin and contract offices struggle to keep pace with award notification cadence.

SUPPLY CHAIN GAPS STRAIN DEFENSE MODERNIZATION TIMELINES.

Across major defense programs, Primes are increasingly seeking second-source suppliers for key subsystems ranging from electromechanical components and power electronics to thermal control units and structural assemblies. A recurring pain point is the lack of repeatability and consistency in hardware builds, which disrupts field serviceability, slows integration and undermines operational reliability. These issues are prompting Primes to identify vendors that can offer tighter configuration control, truncated lead times and integrated design-manufacturing capabilities.

At the same time, new entrants often face barriers around qualification cycles, compliance readiness (AS9100, DFARS, ITAR, etc.) and full-lifecycle testing. While demand for innovation remains strong, supplier onboarding continues to move slowly especially for early-stage startups without production credentials. As the defense ecosystem pushes for modernization at scale, suppliers capable of delivering repeatable and production-ready subsystems with embedded software and rigorous test infrastructure are increasingly well-positioned to displace legacy incumbents.

Similarly, the Defense Logistics Agency (DLA) regularly seeks replacements for legacy parts due to obsolescence, supply chain gaps, or missing technical data often encouraging reverse engineering, alternate sourcing or digital manufacturing solutions. Through platforms like DIBBS and targeted R&D efforts, DLA invites small businesses and non-OEMs to qualify as suppliers and support sustainment of aging systems across the military.

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TOP TALENT & JOBS

ALL JOB OPENINGS | RESUME DROP

HERE IS OUR LIST OF TOP A&D TALENT.

STARTUPS TALENT DEMAND AMID JOB MARKET SLOWDOWN.

This month’s jobs report shows that while the broader hiring market is slowing down, aerospace and defense startups remain resilient thanks to strong VC and government funding. Over $3 billion in capital flowed into defense-tech startups last quarter, driving a noticeable uptick in hiring for experienced roles in software, robotics, AI, and advanced manufacturing. With the current administration prioritizing defense innovation, investors and founders are increasingly competing for the same specialized talent pool.

Startups have traditionally leveraged summer months to onboard recent grads and interns, but that trend has changed. Hiring managers are now favoring experienced professionals who can ramp quickly on mission-critical projects. This shift highlights the need for targeted recruiting strategies, especially as competition for seasoned engineers and startup-ready personnel continues to be a need across the industry.

FEATURED JOB OPENINGS.

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TRACKED SOLICITATIONS

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ACTIVE.

UPCOMING.

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VENTURE UPDATE

VENTURE DEBT GAINING TRACTION FOR SEED STAGE A&D HARDWARE STARTUPS.

As equity markets tighten, contract kick off delays persist and hardware heavy startups in A&D look to scale production or fulfill growing backlogs, more Seed stage founders are turning to venture debt as a financing tool. More specifically, we’re seeing this across space, autonomous system and missile defense subcomponent and subsystem providers.

Specialized lenders and structured credit providers are increasingly comfortable underwriting against signed DoD contracts, SBIR awards, or commercial backlog, even without recurring revenue, and some are even taking equity alongside debt. For founders, venture debt offers a nondilutive way to extend runway, particularly between Seed and Series A when equity terms can be steep. As Primes and DoD customers continue to demand prototype deliverables, venture debt is playing a larger role in funding infrastructure, inventory and supply chain acceleration.

FOUNDER TIP

PLANNING FOR REQUIRED LICENSES AND CERTIFICATIONS.

If your startup is gearing up to scale production for A&D customers, treat certifications as a strategic pillar of your early manufacturing roadmap. Standards like AS9100 (quality management), CMMC/NIST (IT security), and FAA or FCC licensing (when applicable) often determine your eligibility to participate in larger contract opportunities.

In many cases, Primes or DoD customers may delay or pause engagement until these requirements are satisfied. Proactively aligning certifications with your production plan enables smoother facility audits, minimizes delays and strengthens your position with Primes, DoD buyers and proposal evaluators for certain solicitations.

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Link to Last Month’s Newsletter HERE.