Big Tech Enters Defense, Tracking AI Disruption, and Startup Success with Robert Shelton

In this episode of The Startup Defense, Callye Keen sits down with Dan Magy, exited founder and CEO of Firestorm, to explore the future of UAVs, the reindustrialization of America, and the challenges of defense innovation. They dive into the evolving role of drones in modern warfare, the barriers faced by smaller defense companies, and how Firestorm is revolutionizing manufacturing at scale for defense technologies.Topics Discussed:[0:00] Introducing Dan MagyCallye introduces Dan Magy, discussing his background in drones and counter-UAV technologies.[0:55] The Changing Face of WarfareDan highlights how modern warfare and drone use have drastically evolved, with drones now serving as critical tools on the battlefield.[3:34] Reindustrializing AmericaThey explore how companies like Firestorm are helping to drive the reindustrialization of the U.S. through innovative, in-field manufacturing solutions.[7:10] Challenges in U.S. Drone ManufacturingDan talks about the high cost, long lead times, and inefficiencies in current defense manufacturing, contrasting it with Firestorm’s agile approach.[11:25] Risk and Innovation in DefenseThe conversation turns to how the Department of Defense is risk-averse and the hurdles small companies face in getting contracts and scaling innovations.Key Takeaways:The Future of UAVs is About Resupply - Dan emphasizes that the real challenge in drone warfare is resupplying at scale, which Firestorm addresses through in-field manufacturing capabilities.Small Businesses Drive Defense Innovation - Unlike traditional defense contractors, smaller startups like Firestorm are more agile and take risks to develop cost-effective solutions quickly.The U.S. Faces a Manufacturing Gap - There’s an urgent need to reinvigorate America’s manufacturing capabilities to meet the demand for defense technologies, a gap Firestorm is helping to fill.Quotes:"Drones today are essentially flying IEDs, and we need to rethink how we build, supply, and use them." – Dan Magy"Resupply and in-field manufacturing are critical to making UAVs truly attritable in modern warfare." – Callye KeenAbout Guest:Dan Magy is the CEO of Firestorm, a company focused on developing multi-mission drones and revolutionizing defense manufacturing through 3D printing. With a background in both destroying and manufacturing UAVs, Dan brings a unique perspective to the challenges of defense technology and risk management. Learn more about Firestorm at Firestorm.Resources Mentioned:FirestormBeyond Capital

In this episode of The Startup Defense, host Callye Keen talks with David Schiff from the National Security Innovation Network (NSIN). They explore David's extensive work in defense innovation and discuss the crucial programs and opportunities available for innovators looking to contribute to national security. David shares insights on fostering collaboration across different sectors, the significance of human-centered design, and the role of NSIN in accelerating defense-related technologies from early stages to commercialization. This episode provides valuable information for anyone interested in navigating the defense innovation landscape.[00:01:00] David Schiff’s Passion and Background David shares his passion for connecting people and ideas across ecosystems, highlighting his journey from joining the Navy to working in defense innovation. He discusses his experiences in both military and civilian roles, which have shaped his approach to fostering collaboration in defense.[00:06:00] Role and Impact of NSIN David provides an overview of NSIN’s mission and various programs. He emphasizes the importance of student involvement and tech transfer in driving defense innovation and supporting startups through different stages of technology readiness.[00:08:00] Programs and Opportunities at NSIN Details on NSIN’s initiatives, from early-stage technology readiness programs to supporting dual-use innovation. David explains how NSIN helps startups transition to defense applications and the value of these programs in fostering innovation.[00:12:00] Challenges and Solutions in Defense Innovation David discusses common obstacles faced by startups in the defense sector, including the complex facility clearance process. He shares examples of successful initiatives and process improvements that NSIN and other organizations are implementing to address these challenges.[00:17:00] Future of Defense Innovation David shares his thoughts on the increased budget for DIU and its implications for the future of defense innovation. He talks about the impact of international partnerships, upcoming programs, and his optimism for continued growth and collaboration in the sector.Key TakeawaysConnecting Ecosystems: Collaboration across different sectors is crucial for accelerating innovation in defense.Human-Centered Design: Incorporating user-centered approaches can significantly improve defense solutions.Importance of Networking: Building connections and finding mentors are essential for navigating the defense innovation landscape.Efficiency and Innovation: Streamlining processes and leveraging disruptive technologies can enhance efficiency in defense spending and logistics.Opportunities at NSIN: NSIN offers various programs for early-stage technologies, dual-use innovation, and student involvement in defense projects.Resources Mentioned:NSIN (National Security Innovation Network): NSIN.milCTO Innovation: CTOInnovation.milDefense Innovation Unit (DIU): DIU.milDefense Entrepreneurs Forum (DEF): DEFGuest Bio: David Schiff is a key figure at NSIN, with a rich background in defense innovation, including his time at NavalX and Defense Entrepreneurs Forum. His work focuses on connecting innovators with defense opportunities, streamlining processes, and fostering collaboration across various sectors. 

In this episode of The Startup Defense, host Callye Keen sits down with James Parker from Leonid Capital Partners to dive deep into the financial strategies essential for defense startups. They discuss the crucial phase of avoiding the dreaded "Valley of Death," where many promising startups falter. James shares insights on leveraging government contracts for non-dilutive funding, the importance of maintaining equity, and how Leonid Capital’s innovative credit-focused approach provides vital support for companies tackling national security challenges. They explore real-world scenarios, from securing initial SBIR awards to managing significant contract wins, and offer practical advice for founders navigating the defense tech ecosystem. This episode is packed with actionable tips and inspiring stories that highlight the impact of financial strategies on the success of defense startups. Key TakeawaysLeverage Non-Dilutive Funding: Non-dilutive funding, such as government contracts and SBIR programs, is crucial for startups to maintain equity while securing necessary capital for growth. James Parker emphasizes the importance of leveraging these opportunities to avoid giving away equity too early and to preserve ownership.Understanding and Negotiating Government Contracts: Many startups face challenges with the complexities of government contracts. James advises founders to thoroughly understand and, if necessary, renegotiate their contract terms, particularly CLIN schedules, to ensure a steady cash flow and avoid long payment gaps that could hinder their operations.Strategic Use of Credit Financing: Leonid Capital Partners’ unique credit-focused approach allows startups to borrow against future contract values. This innovative financing solution provides immediate capital to support growth without diluting ownership, making it a valuable tool for companies in the defense sector.Impact and Ethos in Business: Embedding a mission-driven ethos into the business model can lead to both personal fulfillment and business success. Leonid Capital’s commitment to giving back a significant portion of profits to military families and veteran communities highlights the importance of aligning business operations with personal values and societal impact.Navigating Growth Challenges: Startups often encounter the “champagne problem” of rapid growth following significant contract wins. James discusses practical strategies for scaling operations, managing cash flow, and ensuring sustained growth without compromising the company’s stability or equity.Key Quotes"Keep your equity, execute your equity when it's really important, find strategic partners." - James Parker"Build something to own it forever, and the best way to get an exit is if you don’t have to sell it." - James Parker"It's about avoiding the champagne problems of success and ensuring you don't crash and burn in the Valley of Death." - Callye KeenAbout James ParkerJames Parker is co-founder and President of LEONID. He has also served as CEO and CFO in a variety of privately held and publicly traded companies. In addition to his experience as a NASA Flight Controller, James also worked as an engineer and consultant with major Defense and Aerospace companies including Lockheed Martin, Northrop Grumman, and Raytheon

In this episode of Startup Defense, host Callye Keen welcomes Graham Plaster, the Director of Nautilus at Defensewerx. Graham discusses his passion for bridging the gap between American innovators and warfighters, sharing insights into his journey from the military to defense innovation. He explains how his background and entrepreneurial spirit led him to play a pivotal role in fostering collaboration between the tech world and the defense sector.Key Topics:Introduction to Graham Plaster:Graham's background in the military and his entrepreneurial roots.His current role at DefenseWerx and his focus on innovation in the defense sector.Bridging the Gap:The challenges of connecting innovators with the defense sector.The importance of closing the gap between tech innovators and warfighters.Innovating for Defense:Differences between innovating around a problem and innovating around a capability.The impact of asymmetrical warfare on defense innovation.The role of the 9/11 Commission Report in shaping modern defense strategies.Defense Works and Nautilus:Overview of Defensewerx and its various partnership intermediary agreements (PIAs).The role of Nautilus in accelerating access to non-traditional companies.Collaboration with other government agencies and military organizations.Key Technology Areas:Importance of hypersonic countermeasures and cyber defense.Emerging threats and the need for innovative solutions in defense.Component Repair Center Collaboration Event:The initiative to improve on-demand part manufacturing for military needs.The potential impact on the defense industrial complex.Advice for Innovators:The concept of dual market technology.The importance of human terrain in innovation ecosystems.Encouragement for emerging tech startups to engage with defense-focused organizations.Quotes:“Innovation ecosystems are a human terrain.” - Graham Plaster“Run fast and build things.” - Graham PlasterResources:NautilusDefensewerxConnect with Graham Plaster:LinkedIn: Graham PlasterSubstack: http://diie.substack.comConnect with Callye Keen:LinkedIn: Callye KeenTwitter: @CallyeKeen

On this episode of The Startup Defense, Callye Keen speaks with Brandon Tseng, former Navy SEAL and co-founder of Shield AI, a company at the forefront of defense technology, specializing in AI-driven autonomous systems. In this episode, we delve into the remarkable journey of AI from concept to implementation in military aviation, including autonomous F-16 dogfights and the broader implications for future warfare.Brandon shares his transition from Navy SEAL to tech entrepreneur, driven by a deep passion for enhancing national security and global stability through advanced technology. He discusses the inception of Shield AI with his brother Ryan, their challenges, and the vision that propels their innovations.Key highlights of this episode include:AI in Aviation vs. Autonomous Vehicles: Brandon outlines why AI in aviation presents a technically simpler challenge compared to autonomous driving, despite high stakes.From SEAL to CEO: Explore Brandon's journey from the military to co-founding a leading AI firm, including the challenges of aligning a start-up with defense sector needs.Autonomous F-16s: Insights into Shield AI's groundbreaking work in fully autonomous dogfighting with F-16s, showcasing the advanced capabilities and potential of AI in combat scenarios.The Path to Autonomy: Brandon discusses "climbing the aviation food chain," a strategy to integrate AI across various military platforms, starting with simpler systems and moving towards more complex applications.Working with Family: The dynamics and benefits of founding and scaling a high-stakes tech startup with a sibling.Future of Shield AI: Brandon touches on upcoming initiatives and the strategic focus on expanding AI applications across different military domains, reinforcing their mission to protect service members and civilians effectively.Brandon's insights are not just about the evolution of military tech but also about the perseverance required to innovate within the tightly regulated defense sector. His reflections on working alongside his brother, the iterative process of securing funding, and navigating the complexities of defense acquisitions provide a compelling roadmap for any entrepreneur looking to make an impact.For anyone fascinated by the intersection of technology, entrepreneurship, and defense, this episode is a must-listen, offering a deep dive into the future of warfare where AI pilots are no longer the stuff of science fiction but a rapidly approaching reality. Tune in to explore how Shield AI is shaping the future of defense technology through innovation and strategic execution.About Brandon TsengBrandon Tseng is Shield AI’s Co-Founder, President, and Chief Growth Officer. Previously, Brandon proudly served in the Navy for seven years as a SEAL and Surface Warfare Officer aboard USS Pearl Harbor (LSD 52). He founded Shield AI – with the mission to protect service members and civilians with intelligent systems – driven by firsthand experiences during deployments to Afghanistan (x2), the Pacific Theater, and the Arabian Gulf. At Shield AI, he leads all aspects of growth – business development, corporate development, strategy, marketing, and government relations – to help Shield AI achieve its mission at a global scale. Brandon earned his B.S. in Mechanical Engineering from the U.S. Naval Academy and his MBA from Harvard Business School.Learn Morehttps://shield.ai/

Callye Keen speaks with William Treseder, Chief Strategy Officer at the Marine Innovation Unit and SVP at BMNT, a pivotal organization in the defense innovation space. William shares insights from his diverse career, discussing everything from 3D printing with his kids to complex defense contracting and the changing landscape of defense technology innovation.Key Topics Discussed:Journey into Defense Innovation: William traces his path from the Marine Innovation Unit to his current role at BMNT, highlighting how his past experiences influence his approach to innovation.Impact of 3D Printing: Exploration of how 3D printing technology is not just a tool for creation but a gateway for young minds into the realms of engineering and problem-solving.Hacking for Defense: William discusses the program's multifaceted impact, from offering real-world problem-solving for students to acting as a bridge between academic institutions and defense needs.Barriers to Innovation in Defense: The conversation dives into the systemic challenges and evolving landscapes of defense procurement and the integration of new technologies from non-traditional sources.Future of Defense Innovation: Discussion on the potential shifts in defense contracting and procurement, emphasizing the need for models that accommodate rapid technological change and non-traditional defense solutions.Key Quotes:"I've loved being a builder for a very long time, from zero to one phase, where you're just figuring things out." - William Treseder"Friction has built many great things, and curiosity—I'll make an argument for ignorance as well." - William Treseder"If you can hold on to that sense of curiosity, we're all better off, and some of those things will manifest as businesses later on." - William Treseder"The best decisions I've made were based on people...these are amazing people I want to work with." - William Treseder on joining the Marine Innovation UnitAbout William Treseder:

Episode Summary:In this episode of "The Startup Defense," Callye Keen sits down with Larsen Jensen, a former SEAL and Olympic athlete, who is making significant strides in the world of impact investing through his work with Harpoon. Larsen discusses his journey from a rural upbringing through elite athletics and military service to becoming a pivotal figure in defense-focused venture capital. He shares insights into the power of private capital to drive innovation in defense technologies and the importance of dual-use applications.Highlighted Topics:Larsen's Diverse Background: From his roots on a Californian almond farm to competing in the Olympics and serving as a Navy SEAL, Larsen's unique experiences have shaped his approach to venture capital and impact investing.Impact Investing in Defense: Larsen discusses how impact investing can simultaneously achieve significant financial returns and provide essential capabilities to the defense sector, contributing to national security.Challenges of Dual-Use Technologies: The conversation delves into the nuances of dual-use technology development, emphasizing strategic go-to-market approaches for startups in the defense and commercial sectors.The Role of Private Capital in Defense Innovation: Larsen highlights how private capital is increasingly pivotal in bringing cutting-edge technologies to the defense market, potentially accelerating development cycles and implementation.Advice for Entrepreneurs: Larsen encourages entrepreneurs to take bold actions and leverage their unique backgrounds to innovate within the defense sector, stressing the importance of moving from planning to execution to truly understand market needs.Key Quotes:"I'm passionate about making the improbable possible." - Larsen Jensen"Everything's out of reach until it's not." - Larsen Jensen on breaking into the defense industry"We need to mass our resources where there is a gap in the market we can exploit." - Larsen Jensen on strategic market entry"Stop thinking too much and start doing more." - Larsen Jensen on taking action in entrepreneurshipAbout Larsen Jensen:Larsen Jensen is the Founder and General Partner of Harpoon Ventures—one of the first dual-use venture capital firms in Silicon Valley, now with over $300M AUM. Larsen has led dozens of investments in defense tech, cybersecurity, AI, enterprise infrastructure, and frontier technology. Prior to his entrance into venture capital, Larsen was a two-time Olympic medalist (2004 and 2008) and maintains the American record in the 400m swimming event. After the Olympics, Larsen served as a Navy SEAL. Larsen previously held investment and asset management roles at UBS, Goldman Sachs, Andreessen Horowitz, and Lightspeed Venture Partners. Larsen earned a Bachelor’s degree from USC and an MBA from Stanford.

In this episode, Robert Shelton, a retired tech industry professional, discusses his passion for artificial intelligence (AI) and its impact on various industries. He shares his background working at Microsoft and the company's role in the AI revolution. Shelton also highlights the transformation of the tech industry in the federal space, particularly in national security and intelligence. He emphasizes the importance of working with startups and small companies, as they often drive innovation and bring fresh perspectives to the market. Shelton explores the potential impact of AI on knowledge worker jobs and discusses the changing job landscape. He concludes with advice for startups, encouraging them to get their ideas out there and leverage platforms like YouTube and podcasts to gain visibility and support.00:00 Introduction and Passion for AICallye Keen introduces Robert Shelton, who shares his post-retirement passion for artificial intelligence and programming, highlighting the rapid advancements in generative AI.01:16 Shelton's Tech Background and Microsoft's AI InitiativesRobert delves into his extensive background in technology, focusing on his time at Microsoft and their significant contributions to the AI revolution.02:09 Microsoft's Role in Defense and IntelligenceThe conversation shifts to Microsoft's proactive stance in the defense sector, especially when others stepped back, and how startups began contributing to national security.02:59 The Transformation of the Tech Industry Towards Federal SpaceDiscussing the tech industry's evolution, Robert and Callye explore the impact of startups and innovation on national defense and security solutions.11:09 The Impact of AI on the Workforce and IndustryThe dialogue turns to the broader implications of AI on jobs, the workforce, and how it's changing the landscape for programmers and other knowledge workers.29:36 Future of AI and Advice for StartupsRobert shares his perspective on the future possibilities with AI in national security and offers valuable advice for startups looking to make an impact.TakeawaysArtificial intelligence (AI) has the potential to revolutionize various industries, including national security, mental health, and data analysis.Startups and small companies play a crucial role in driving innovation and bringing fresh perspectives to the market.The adoption of AI may lead to changes in the job landscape, with certain career fields being reduced or eliminated while new opportunities emerge.The accessibility of AI tools and platforms allows startups to compete with larger companies and create impactful solutions at a fraction of the cost.Entrepreneurs should focus on getting their ideas out there and leveraging platforms like YouTube and podcasts to gain visibility and support.

This conversation explores the shift from manufacturing in China to Mexico, particularly in the context of the Southern California manufacturing renaissance. The guest, Terry Arbaugh, discusses the benefits of manufacturing in Mexico, including proximity to the US market and the ability to work closely with customers. The conversation also touches on the opportunities in defense tech and the potential for regulation changes to support domestic sourcing. The importance of getting people excited about manufacturing and the impact it can have on communities is highlighted.TakeawaysManufacturing in Mexico offers benefits such as proximity to the US market and the ability to work closely with customers.The Southern California region is experiencing a manufacturing renaissance, with increased investment and growth in the industry.Opportunities in defense tech are expanding, and near-shoring in Mexico can provide a strategic advantage.Regulation changes may support domestic sourcing and encourage the growth of manufacturing in the US.It is important to get people excited about manufacturing and showcase the impact it can have on communities and the world.Chapters00:00 Introduction and Background03:23 The Shift from China to Mexico09:14 Benefits of Manufacturing in Mexico12:20 The Southern California Manufacturing Renaissance19:46 Participating in the Growing Ecosystem23:32 Opportunities in Defense Tech27:21 Regulation Changes and Near-Shoring29:17 The Long-Term Impact of Manufacturing32:27 Getting People Excited About Manufacturing38:49 The Importance of Marketing Manufacturing

Welcome back to The Startup Defense, in this week’s episode Callye Keen talks with John Ferry about innovation in government contracting. Ferry shares his background from military service to working acquisitions. Topic Highlights:[00:00] Introduce John FerryCallye Keen introduces John Ferry, CEO of UseRogue.com, an organization blazing the trail of applying AI to the GovCon industry. [02:12] The DARPA Experience and Technology Transition Ferry's recount of his tenure at DARPA illuminates the process of transitioning technology from labs to operational forces. This segment explores the nuances of bringing innovative solutions to the warfighter, emphasizing the organizational skills required to navigate the defense ecosystem.[04:00] The Role of AI in Streamlining AcquisitionHighlighting his passion for applying cutting-edge technology to government procurement, Ferry discusses how automation and AI can revolutionize the acquisition process, making it faster and more efficient.[07:00] Misconceptions in Selling to the Government Ferry addresses common misconceptions about selling technology to the government, shedding light on the distinction between users and customers within the DoD. This discussion is crucial for startups aiming to navigate the complex web of defense procurement successfully.[18:28] Rogue: Revolutionizing Proposal Writing with AI An in-depth look at Rogue, Ferry's venture into using AI for proposal writing, offers a glimpse into the future of GovCon. This highlight underscores the transformative potential of AI in reducing the complexity and cost of proposal writing, making defense contracting more accessible.[29:16] The Defense Innovation Ecosystem: A Call for Realistic Expectations Ferry critically examines the current state of defense venture capital and innovation, urging startups to temper their expectations and understand the long-term nature of DoD contracting. Parting Thought:"Invest as much time into the people as you do into the process... You can make a quick buck, but you can't make a long buck if you do it wrong."  John FerryCallye Keen - Kformhttps://kform.com/ https://www.linkedin.com/in/callyekeen/ John Ferry - UseRogue.comWith over 15 years of work experience in the defense and government sectors, John Ferry is the Chief Executive Officer of UseRogue.com, a company that applies AI to the GovCon industry. He is also the President of Trenchant Analytics, LLC, where he oversees the company's strategic vision, business development, and customer relations. John has a Masters of Public Policy from George Mason University and a Bachelor of Arts in Business Administration from American Military University. As a former Army officer and Special Forces candidate, John has a deep understanding of the needs and challenges of the operational force, and he leverages that expertise to match user needs and technology capabilities to identify opportunities for technology transition.LinkedInUseRogue.comTacgov.com