Why the Smartest Dual-Use Startups Treat Defense as a Launchpad, Not a Niche
27 August 2025 - A Weekly Publication by New North Ventures
The dual-use founders who are best positioned for succes do not ask if a company is a defense play or a commercial play. They ask what feedback loop can be unlocked across both markets. This matters because defense contracts do more than pay the bills. They de-risk early technology and create a bridge to civilian scale. We are looking for companies who understand the importance of this duality.
Startups that succeed commercially treat Pentagon contracts as validation points rather than endpoints. Historical examples include ARPANET becoming the Internet and GPS enabling Uber. Today, parallels appear in autonomous platforms trialed in military logistics that later scale into commercial fleets, or secure chips flowing from defense supply chains into fintech and consumer privacy. It is not surprising that investors worry about investing in companies that support national security missions as it may trap those start-ups in slow procurement cycles. However, early-stage deal flow shows the opposite: small awards provide non-dilutive capital and credibility while building resilience into products that commercial buyers increasingly demand. The key is positioning defense customers as early adopters who help de-risk technology, creating a natural entre into private markets.
We think founders worth backing exhibit traits similar to Licklider’s teams. They think in systems, bridge academic, defense, and commercial spaces, and tolerate failure in pursuit of transformational breakthroughs. These qualities are decisive in dual-use markets and are increasingly rare.
New North Ventures is taking a close look at the DARPA story and starting to line up podcast guests who can dive deeper into its lessons for today’s dual-use landscape. Investment in autonomy, cyber, and space are already revealing how defense de-risking can spark commercial momentum, creating the compounding loops that define the next generation of breakthrough technology.
SECNAV Orders Launch of New Naval Rapid Capabilities Office
The Navy is creating the Naval Rapid Capabilities Office to consolidate existing innovation efforts with a goal to field urgent solutions faster across all domains. Vice Adm. Seiko Okano will lead this new unit, with a focus on rapid assessment, execution, and technology transition. For dual-use founders and investors, this signals that defense can act as an early adopter, validating emerging technologies while de-risking them for broader markets. Autonomy, AI, and ISR capabilities stand out as sectors where these shifts could accelerate commercial adoption. While streamlined offices and focused priorities hint at a future where defense-driven innovation increasingly shapes the next generation of breakthrough technologies, we will be watching closely to assess whether this represents real change.
More links to explore:
Reality Defender is taking a major step in combating synthetic voice threats through a strategic partnership with Hume AI, a research lab focused on emotionally intelligent AI systems. By combining Reality Defender’s deepfake detection API with Hume’s Empathic Voice Interface API, the company gains early access to cutting-edge voice AI models, enabling the generation of comprehensive datasets that strengthen detection capabilities against next-generation synthetic voices.
This collaboration highlights a proactive approach: rather than reacting to emerging threats, Reality Defender is anticipating them, ensuring their platform stays ahead of malicious actors. For dual-use founders, the partnership underscores the value of aligning with complementary innovators to enhance both credibility and capability. In an AI-driven world, technologies that prioritize trust and verification are positioned to lead both commercially and operationally.
In this episode of the 'Securing Our Future' podcast, hosted by New North Ventures, Jeremy interviews Dawn Meyerriecks, an expert with over 40 years of experience in government and industry, to discuss the profound technological advancements from Desert Storm to AI and quantum computing. Dawn shares insights into the adoption of new technologies, the role of government and private sectors, and the importance of finding the right champions for innovation. We also delve into the emerging field of biotechnology and its transformative implications for national security.
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