A Strategic Playbook for National and Global Impact, Fundings: Silent Arrow, Kall Morris, X-Bow
8 January 2025 - A Weekly Publication by New North Ventures
For The Navy, All Eyes Will Be On The China-Taiwan Question: 2025 Preview
Adm. Lisa Franchetti, Chief of Naval Operations, has directed the U.S. Navy to prepare for a potential conflict with China over Taiwan by 2027. With limited time to enact significant changes to the current fleet, her recently published "Navigation Plan" highlights key initiatives, including "Project 33," which prioritizes achieving 80% surge readiness across aviation, surface, and submarine communities.
However, longstanding challenges in maintenance and operational readiness pose hurdles to meeting these goals. Franchetti has also emphasized diversifying the Navy’s fleet by integrating unmanned vessels alongside traditional warships, a strategy that has shown promise but still requires greater operational inclusion.
Budget constraints remain a critical issue, with the Navy cutting into modernization efforts, such as next-generation strike fighter development, to address financial shortfalls. While additional funding under the Trump administration remains uncertain, the Navy's ability to adapt within financial limitations will be a focal point in 2025. Franchetti, who keeps a countdown to 2027 in her office, has made it clear that preparing for China's potential moves regarding Taiwan is a top priority, both for her and for the service as a whole.
Dual-Use Is a Strategy, Not a Category (Nor a Trap)
The concept of "dual-use" in the startup ecosystem has often been misunderstood and misapplied, creating unnecessary barriers for entrepreneurs and investors alike. Historically tied to narrow contexts like nuclear materials, the term has expanded to encompass a broad spectrum of technologies serving both military and civilian markets. This broader definition, however, often leads to confusion, excluding ventures from funding opportunities or misaligning them with environmental, social, and governance guidelines.
To avoid these pitfalls, dual-use should not be seen as a category but rather as a market strategy. Founders develop capabilities and then explore product-market fit across both military and commercial markets based on timing, scale, and economic feasibility. This strategy grants entrepreneurs the flexibility to prioritize either sector—or both—depending on the venture’s stage and market demands.
Successfully navigating dual-use markets requires a clear framework and "bilingual" fluency to address the distinct needs of mission-driven and commercial customers. Defense markets often operate within rigid structures, emphasizing strict specifications and compliance, while commercial markets prioritize speed, economic efficiency, and user-centric metrics.
Funding sources also differ significantly, with government funding focusing on grants and compliance-heavy contracts, while commercial ventures rely on equity-based investments. By adopting a strategic lens and frameworks like MIT’s Dual-Use Readiness Levels™, startups can efficiently transition between markets and align milestones across both contexts. Whether defense-first, commercial-first, or parallel, reframing dual-use as a flexible, strategic approach empowers ventures to innovate, attract diverse funding, and address critical challenges in national and global security.
More links to explore:
Founded: 2012
Key People: CEO Chip Yates III
Elevator Pitch: Autonomous cargo drones and aerospace vehicles designed to transport critically needed cargo.
Funding: The company raised $3 million of venture funding from undisclosed investors on January 6, 2025.
Founded: 2019
Key People: CEO Troy Morris
Elevator Pitch: A space logistics platform designed to enable sustainable orbital operations and optimize satellite missions.
Funding: The company raised $140,000 of venture funding in the form of SAFE notes from undisclosed investors on January 6, 2025.
Key People: CEO Jason Hundley
Founded: 2016
Elevator Pitch: Rocket propellant intended to offer affordable access to orbit for commercial and government payloads.
Funding: The company raised $25 million of venture funding from undisclosed investors on January 6, 2025.
Look for a new episode of the Securing the Future Podcast wherever you listen. In our most recent episode, general partner Jeremy Hitchcock sits down with journalist Tim Mak for a powerful discussion on national security, his experiences reporting from Ukraine, and insights from his acclaimed work on the NRA and global conflict.
