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A Winning Dual-Use Growth Strategy:  What To Know About Working With Government

Breaking into the government market can be lucrative for startups and scaleups, but it presents unique challenges

by
Ellen Chang

For startups looking to land government contracts, navigating the complexities of the public sector can feel like an uphill battle.

Dual-use entrepreneurs, those developing technologies with applications in both commercial and government/defense sectors, face several key obstacles including:

In a fireside chat at BMNT Ventures’ Navy Private Capital Bootcamp in Palo Alto, CA, recently, BMNT CEO Pete Newell and Steve Weinstein, general partner of America’s Frontier Fund, spoke about how dual-use startups and scaleups can successfully land government contracts. They recommended defense-focused companies concentrate on being problem-centric, prioritize customer discovery, take pains to understand the government’s processes for working with industry, and be willing to embrace change and be adaptable. Below find takeaways from their talk (which you can watch here). 

Steve Weinstein, general partner of America’s Frontier Fund; BMNT CEO Pete Newell; and Stevan Youssef, senior commercialization lead at BMNT Ventures discuss what dual-use startups should know about working with the government. BMNT photo

1. Be Problem Centric 

Successful dual-use companies must have deep knowledge of both the big-picture and minute details of the challenge they seek to solve. Newell came to this realization through his Army service saying, “I didn't understand yet that good product development and product discovery was missing problem curation: the process of deeply understanding not just the problem, but the problem’s context. On the battlefield, this means knowing how long the problem will remain the same in a fast-changing environment, and knowing the time required to gather technology to solve it.” 

To thrive, he suggests companies: 

These details are crucial in a rapidly evolving environment like the battlefield, where Newell cut his teeth, but also hold true in the dynamic world of government problem-solving and dual-use technology. 

2. Prioritize Customer Discovery and Validation

Don't fall into the trap of building a product in isolation. Weinstein stressed the importance of ongoing customer discovery: “If you're not talking to your customers and doing ongoing discovery, you're making a mistake.” 

Newell and Wienstein suggest: 

3. Navigate the Complexities of Government Customers

Working with the government involves unique dynamics that don’t exist in traditional marketplaces. The faster you can understand these differences, the faster you can start solving challenges. Among the things to understand: 

Once product-mission fit is established, a key to developing product-market fit is to secure internal champions. Identify individuals within the government who understand your technology and can advocate for your solution. Building relationships with key personnel who see the value in your product can be crucial for navigating bureaucratic hurdles.

4. Be Adaptable and Embrace Change

Most successes in startups happen after a major “pivot” occurs, derailing the original idea and forcing you to embrace a new direction or path. This pivot, though uncomfortable in the moment, yields better, more impactful solutions. Having the right mindset and a willingness to be flexible can ensure pivots become power plays. If you’re a founder of a defense-focused startup, they suggest you 

5. Refine Your Communication and Networking Strategies

Successfully navigating the government market requires adept communication and networking, and often demands breaking into long-established networks with fresh perspective. 

By embracing these principles, entrepreneurial startups and scaleups can increase the possibility of successfully embarking on a dual-use growth strategy that contributes to real mission success.

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