Field of View (FOV) - November 2024

Early-Stage Aerospace & Defense Newsletter.

Author

Approach Venture
December 02, 2024

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.

AI BOTS MOVE INTO HIRING TALENT.

A&D startups are increasingly drawn to asynchronous interviews and AI-driven hiring tools to save time and streamline processes. While these methods may offer hiring managers a perceived level of efficiency, they often come at the cost of the candidate experience. Early-stage teams thrive on the ability to connect candidates with a compelling vision—their people, their product, and their mission. When hiring becomes overly transactional, the unique appeal of joining a startup can be lost. Candidates may feel disconnected, reducing the likelihood of seeing the role as an exciting opportunity rather than just another job.

This is particularly true for passive candidates—those not actively searching but open to the right opportunity. Passive talent often requires a more nuanced approach, and automated processes can fail to build the trust and engagement needed to bring them on board. By involving founders or key stakeholders early in the process, startups can establish a personal connection that resonates with candidates. This demonstrates a solid commitment to the team and creates a sense of belonging and alignment with the mission. In a competitive talent market, maintaining this personal touch can be the difference between landing top-tier talent and losing them to a more human-focused competitor.

Below contains poll results from 163 employees with jobs at Aerospace & Defense-focused companies—the response: strong majority against AI bots.

MILITARIZATION OF COMMERCIAL SPACE ASSETS.

As global power dynamics intensify, USSF leaders recognize the need for a cohesive relationship with the commercial space sector who is ultimately driving our country’s innovation on-orbit. Leveraging venture capital and non-dilutive DoD funding, commercial companies who have achieved flight heritage will have the ability to work directly with USSF to protect and defend our nation’s assets during times of conflict with China, Russia or other adversaries. This priority DoD access to commercial space technologies will be similar to the intended function of the Civil Reserve Air Fleet (CRAF) which focuses on leveraging commercial aviation assets for military use during emergencies when the need for airlift > the capability of military aircraft.

An example of a similar effort was mentioned in our May FOV within the Regulatory Rundown section (Ctrl+F: CASR). Commercial technology priorities include but are not limited to SDA, SATCOM, PNT as well as Servicing, Mobility and Logistics. With this major effort to bring new commercial capabilities online in support of the warfighter, it will be interesting to see how commercial companies can integrate with outdated military systems and networks without significant internal spend and labor hours to make it work.

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

FEATURED JOBS

PROPULSION SYSTEMS ENGINEER: A fast-growing, well-funded aerospace and defense company revolutionizing propulsion technology for next-generation missile defense systems, where you'll collaborate with top innovators to push the boundaries of aerospace engineering in a dynamic startup environment.

MANUFACTURING ENGINEER: Step into a pivotal role as a Manufacturing Engineer at a fast-growing, well-funded space and defense company, where you'll drive the development and production of cutting-edge propulsive capabilities critical to national security and space exploration in a state-of-the-art facility.

SPACECRAFT ENGINEER: Join a stealth-mode space startup revolutionizing spacecraft technology for commercial and national security applications as a Senior Spacecraft Engineer, where you’ll lead groundbreaking projects, mentor emerging talent, and shape the future of agile, next-generation space systems in a dynamic and collaborative environment.

  • Find all job openings HERE

  • Drop your resume HERE if you’re looking to make a change

TRACKED OPPORTUNITIES

ACTIVE.

  • AFWERX released guidance on their next Tactical Funding Increase (TACFI) Notice Of Opportunity (NOO). 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

  • US Special Operations Command (USSOCOM) released a Technology Experimentation RFI to solicit innovative technologies for Collaborative Autonomous Systems, Human Autonomy Collaboration, Autonomous Systems for Tactical Operations, Autonomous Logistics and Resupply Systems, Security and Resilience in Collaborative Autonomous Systems, and Collaborative Autonomy Architectures

    • Submission Deadline: December 23, 2024

  • The NASA TechLeap Prize is a new program from NASA’s Flight Opportunities office that will provide development funding and flight demonstration opportunities to STMD payloads of interest

    • Submission Deadline: March 20, 2025

  • Space Development Agency (SDA) released a draft RFI/RFP for their Proliferated Warfighter Space Architecture Tranche 3 to support systems engineering and program integration activities for their next satellite tranche

    • Submission Deadline: November 25, 2024

  • Space Rapid Capabilities Office’s (SpaceRCO) Prime Fusion Pilot Accelerator is a unique program designed to advance cutting-edge space technologies that support the mission of the Space RCO. Technologies of interest are focused around onboard security systems for future, combat-capable satellites in Geosynchronous orbits

    • Submission Deadline: December 4, 2024

  • DARPA Strategic Technology Office (STO) released an RFI for capabilities that enable the operation and survival of electronics and energetic materials in extreme environments. Interested parties must have FCL classification at the SECRET Level to respond

    • Submission Deadline: December 10, 2024

  • USSF Space Systems Command (SSC) released an RFI seeking commercial satellite communication (COMSATCOM) services from GEO satellites. The RFI emphasizes achieving resilience through a decentralized, maneuverable, high-mass satellite constellation by leveraging small and medium satellites and diverse transmission bands

    • Submission Deadline: December 20, 2024

UPCOMING.

  • The next AFWERX Direct to Phase II (D2P2) Open Topic window is planned to be released on February 5, 2025

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

VENTURE UPDATE

  • HQ: Los Angeles, CA

  • Founded: 2019

  • Fund III Size: $150mm

    • Lead / Stage Preference: Can Lead / Seed

  • Check Size: $2-3mm

    • 2023 Average Check Size: $1.5mm

  • Close Timing: November 2024

  • Investment Thesis: Technology startups leveraging shifts in cultural trends and behaviors

“More Than a Dozen Private Funds to Invest $2.8 Billion in Over 1,000 Critical Technology Startups and Small Businesses.”

Below contains the list of VCs and Fund-of-Funds to pay attention to that the DoD’s Office of Strategic Capital (OSC) brought into the SBICCT Initiative. SBICCT is a joint DoD and SBA initiative to attract and scale private investment in technology areas critical to economic and national security. Funds licensed by the SBA under the SBICCT Initiative are eligible for access to SBA-guaranteed loans designed to enhance fund-level investment returns. Licensees have access to up to $175 million in SBA Debenture loans through the SBIC program.

Note: many Private Credit and Private Equity Funds are included in the initiative whose strategy does not directly align with what an early-stage A&D startup would be looking for and vice versa.

STARTUP RESOURCES

CAPITALIZATION TABLE MANAGEMENT PLATFORM

CARTA is the leading capitalization table management platform for startup founders. From issuing early equity to IPO, build and scale your business on one platform.

Not exhaustive, below contains several benefits of utilizing the Carta platform:

  • Grant Stock Certificates to employees

  • Conduct your first 409A valuation

  • Host your Data Room

  • Create a Pro Forma Capitalization Table in support of investor due diligence

  • Receive financial education on how equity works (Equity 101)

  • Obtain reliable Salary / Equity benchmarks for near-term or down-range employees

Investors are also able to manage their Funds on Carta as well - giving VCs more time to spend on deals and less time with back office.

To learn more, request a demo HERE.

FOUNDER TIP

MAKE SURE YOU KNOW WHO HAS YOUR INVESTOR DECK.

Many VCs share deal flow not only with each other but also with founders of their portfolio companies to leverage their industry insights for quick due diligence. Before shopping your investor materials to VCs in pdf format (where you can’t track who has them), consider the following:

  • Does the VC have a portfolio company who may be in competition with your roadmap?

    • Check their website and recent press releases. If yes, the likelihood of their participation is low and should be considered before spending time providing significant detail to an investor who may walk or share with your competition

  • It is always good to know who is viewing your materials

    • Upload your investor presentation to DocSend and require entry of email address / access code to be able to view

  • VCs rarely (if ever at early-stage) sign NDAs - this would be far too cumbersome to sign for every opportunity that comes their way

  • Check with VCs to better understand their LP base

    • Some may be in competing operator seats within your specific industry, located in other countries resulting in CFIUS issues, etc.

DID YOU KNOW?

US ARMY SBIR RELEASE CADENCE.

New Army SBIR topics are released on a monthly cadence and go public on DSIP for the pre-release period on the first Wednesday of each month.