On Thursday, 27th June, Karve hosted a private, invitation-only Growth Workshop event, officially sanctioned by the U.S. Army Futures Command - Atlantic (AFC-A) and the U.S. Office of Naval Research Global (ONR GLOBAL). This exclusive workshop was designed to empower disruptive innovators by unveiling a wide array of NATO funding opportunities.
The workshop featured an inspiring lineup of speakers from strategy, finance, government, and academia, all leading the charge in NatSec innovation. Attendees engaged in interactive sessions that offered insider knowledge and practical insights on achieving sustainable market success with plenty of networking opportunities.
Here are the detailed overviews of each talk from the night.
(1) Opportunities for Collaboration with NATO's Innovation Accelerator
By Heather Desserud, Communications Director, NATO DIANA
Heather Desserud, Communications Director for NATO's Defence Innovation Accelerator for the North Atlantic (DIANA), presented an insightful framework for integrating cutting-edge technology into defence. Here's a summary of the key takeaways:
Addressing the Complexity of Global Challenges
Global insecurity is driven by interconnected issues such as environmental changes, pandemics, resource scarcity, economic instability, and threats from state and non-state actors. Addressing these challenges requires the deployment of advanced science and technology.
Overcoming Barriers to Innovation in Defence
Several obstacles hinder the engagement of innovators in defence:
- Perception of defence as inaccessible and overly complex
- Uncertainty among innovators about where to start and whom to approach
- Cumbersome government rules and regulations
- Difficulties in accessing end-user feedback
- Start-up companies prioritizing commercial revenue streams over defence opportunities
- Defence missing out on talent from the innovation community.
Strategic Approach
DIANA's approach includes:
- Deep tech (TRL 4-7) readiness
- Dual-use innovations for civil and defence applications
- Attracting a diverse range of talent
- A challenge-based rather than requirements-based approach
- An Allied network with common goals.
Partnering for Innovation
DIANA collaborates through:
- Strategic direction and challenge formulation
- Accelerating innovation and testing
- Facilitating adoption of new technologies
- Dedicated programme staff across the UK, Estonia, and Canada
- Networks of test centres and venture capital for DIANA companies
- A rapid adoption team to navigate market opportunities.
Validating the Need
During its pilot year, DIANA received 1,300 applications across three challenges, resulting in 44 innovator agreements and over 1,700 applications from mentors and experts. This highlights the significant demand and interest in addressing defence challenges through innovation.
Future Priorities
DIANA's future priorities include:
- Space
- Artificial Intelligence
- Energy and Propulsion
- Data
- Autonomy
- Quantum-enabled technology
- Biotechnology
- Hypersonic technologies
- Novel materials and manufacturing.
By focusing on these strategies and fostering robust partnerships, DIANA aims to accelerate the integration of advanced technologies into defence, ensuring the NATO Alliance remains resilient and technologically superior.
Building a Disruptive Go-to-Market Strategy
By Lloyd Fallesen, CEO of Karve.
Emphasize Collaboration
The workshop underscored the critical role of collaboration among innovators, academia, financial institutions, and governments. Effective collaboration can drive technological advancements and ensure that innovations meet the strategic needs of defence organizations. Engaging with diverse stakeholders can provide fresh perspectives and foster an environment conducive to success.
Strategic Investment in R&D
Significant investments in research and development are essential. With NATO increasing its budget by 18.2% and the U.S. investing $145 billion in R&D in 2024, there are substantial opportunities for growth and innovation. The UK’s additional £325 million aid package to Ukraine and NATO’s €1 billion venture fund further illustrate the growing financial commitment to defence technology.
Navigating Market Opportunities
Understanding the commercial landscape and identifying scalable entry points are vital. Strategies should be developed to address both domestic and international markets. Dual-use technologies, which can serve both military and civilian purposes, present valuable opportunities for scalability and broader application.
Building a Robust Go-to-Market Strategy
Creating a successful go-to-market strategy involves several key components:
- Strategic Mandate and User Buy-in: Ensuring alignment with strategic objectives and securing commitment from end-users.
- Commercial Pathway: Defining clear pathways for commercialization.
- Funding Source: Identifying and securing funding to support development and deployment.
- Accreditation Pathway: Navigating the accreditation process to meet regulatory and operational standards.
Overcoming Barriers to Scaling Investment
Breaking through investment barriers is crucial for scaling deep-tech innovations. Engaging with deep tech investors and leveraging NATO’s Innovation Fund can provide the necessary financial support. Additionally, understanding and mitigating risks can drive change and encourage investment.
Embracing a Global Perspective
Thinking beyond domestic markets and securing international footholds can significantly enhance the impact of defence technologies. Aligning with multinational needs and standards can facilitate broader adoption and integration of innovations.
Internal Ownership and Strategy
It is imperative to maintain internal ownership of the strategy to ensure continuity and alignment with organizational goals. This involves coordinating efforts across various departments and ensuring that all stakeholders are committed to the strategic objectives.
Identifying Key Stakeholders
Understanding whose problems are being solved is essential. This includes:
- Users: Early adopters and end-users who will benefit directly from the technology.
- Commercial Team: Responsible for bringing the technology to market.
- Project/Programme Owners: Oversee the development and deployment of the technology.
- Budget Owners: Control the financial resources necessary for implementation.
- Authority Body and Senior Stakeholders: Ensure regulatory compliance and strategic alignment.
- Policy Owners: Shape the policies and frameworks within which the technology operates.
Leveraging Useful Touch Points
Engage with key organizations such as NATO (NSPA), the European Defence Agency, and NORDEFCO to navigate the defence landscape effectively. These entities can provide valuable support and resources to aid in the successful deployment of technologies.
IN SUMMARY
Accelerating technology integration into defence requires a multifaceted approach, emphasizing collaboration, strategic investment, and a robust go-to-market strategy. By navigating market opportunities, overcoming investment barriers, and embracing a global perspective, defence organizations can effectively leverage technological innovations to enhance national security and operational effectiveness.
(3) Meeting US Innovation Needs Through a European Ecosystem
By Jonathon Brame, Basic & Applied Research Team Lead, U.S. Army Futures Command
Working with the U.S. Army and Department of Defense (DoD) in 2024 requires an understanding of their strategic frameworks, research and development centers, and international collaborations. Here are key insights and strategies to effectively engage with these entities:
DEVCOM Lab & Centers
The U.S. Army Combat Capabilities Development Command (DEVCOM) encompasses various specialized centers:
- Soldier Center (Natick, MA)
- Ground Vehicle Systems Center (Warren, MI)
- Data & Analysis Center (Aberdeen Proving Ground, MD)
- C5ISR Center (Aberdeen Proving Ground, MD)
- Chemical Biological Center (Aberdeen Proving Ground, MD)
- Aviation & Missile Center (Redstone Arsenal, AL)
- Army Research Lab (Adelphi, MD)
- Armaments Center (Picatinny Arsenal, NJ)
These centers focus on areas like advanced materials, biomechanics, cognitive sciences, robotics, autonomy, mission command, and more.
International Posture
DEVCOM aims to drive international defense innovation by cultivating science and technology partnerships. With 65 DEVCOM employees in 26 locations globally, supported by approximately 300 subject matter experts, the focus is on maintaining technology awareness, choosing essential collaboration partners, and fostering global partnerships.
Organizational Structure
DEVCOM's international efforts are coordinated through several key offices and leaders:
- Director and Deputy Director located in London, UK
- Basic & Applied Research (BAR) led by Dr. Jonathon Brame
- International Technology Integrators (ITI) with several regional directors in Europe and the Mediterranean
These teams work on identifying and executing Army-relevant research, supporting technology conferences, and facilitating collaboration with international partners.
Engagement Strategy
Engagement with the U.S. Army and DoD involves:
- Opportunity Assessment: Identifying potential collaborations and technology needs
- Data-Driven Decisions: Leveraging data to inform strategic choices
- Collaboration: Building partnerships across government, industry, academia, and international allies.
Facilitating Army S&T Investments
The U.S. Army invests approximately $6.4 billion annually in research, development, test, and evaluation (RDTE), involving over 30,000 scientists and engineers. Key technology areas include biotechnology, quantum science, advanced materials, AI and autonomy, microelectronics, renewable energy, and hypersonics.
Collaboration Tools
Several tools and programs facilitate collaboration:
- International Agreements (e.g., Info Exchange Annexes and Project Agreements)
- Engineer and Scientist Exchange Program (ESEP)
- Basic and Applied Research Grants
- Coalition Warfare Program (CWP)
- Foreign Comparative Test (FCT)
- Cooperative Research and Development Agreements (CRADA)
- Foreign Technology Assessment Support (FTAS)
- Cooperative Agreements (CA)These tools support various stages of technology readiness and foster international cooperation.
XTech International 2024
XTech International is a collaborative initiative involving multiple U.S. Army and DoD agencies, aiming to foster innovation through competitions and partnerships. Participants include the Office of the Assistant Secretary of the Army for Acquisition, Logistics, and Technology (ASA(ALT)), Army Futures Command (AFC), DEVCOM, and others.
In Summary
Engaging with the U.S. Army and DoD in 2024 requires navigating a complex landscape of research centers, international collaborations, and strategic investment priorities. By understanding the organizational structure, leveraging collaboration tools, and aligning with key technology areas, innovators can effectively contribute to and benefit from defense-related advancements.
(4) Breaking Barriers to Scaling Investment
By Wojtek Strupczewski, Deep Tech Investor, NATO Innovation Fund
The presentation by Wojtek Strupczewski, a Deep Tech Investor at the NATO Innovation Fund (NIF), highlights the strategies for overcoming barriers to scaling investment in defence-related technologies. Here are the key insights:
Focus on Emerging Disruptive Technologies (EDTs)
NIF concentrates on nine EDTs aligned with NATO’s priorities:
- Artificial Intelligence
- Autonomy & Robotics
- Quantum Technologies
- Biotechnology
- Hypersonic Systems
- Space
- Novel Materials & Manufacturing
- Energy & Propulsion
- Next-Gen Communications
These areas are critical for both military and civilian applications, ensuring broad impact and sustainability.
Central Scaling Thesis
The primary strategy for scaling involves pursuing dual market tracks:
- Civil Market Track: Serving civilian market needs to ensure sustainable growth.
- Defense Market Track: Addressing critical military and national security needs.
This dual approach ensures greater reach and impact by leveraging both civil and defence markets.
Civil Market Barriers
Scaling deep-tech in the civil market faces several challenges:
- Limited deep-tech capital in Europe
- Fragmented regulatory landscape
- Difficulty in achieving infrastructural scale in deep-tech.
Civil Market Approach
To overcome these barriers, NIF employs several strategies:
- Standard-Bearer Positioning: Establishing leadership in standards.
- Bridging National Divides: Leveraging unique reach to unite different national markets.
- Capacity Building Efforts: Utilizing Fund of Funds (FoF) to build capacity.
- Alliance-Wide Demand-Signal Collection: Gathering demand signals across the alliance.
- De-Risking Investments: Utilizing trusted capital status to reduce risks.
Defense Market Barriers
The defence market presents its own set of challenges:
- Slow acquisition cycles
- Focus on bulk orders
- Stringent certification processes
- Dominance of prime contractors
- Export controls and other regulatory hurdles.
Defense Market Approach
To navigate these challenges, NIF focuses on:
- Collaborating with Ministries of Defense
- Engaging with end-users
- Partnering with prime contractors
- Working with NATO entities to facilitate integration and adoption.
In Summary
Breaking barriers to scaling investment in defence technology requires a strategic approach that addresses both civil and defence market challenges. By focusing on emerging disruptive technologies, leveraging dual market tracks, and employing targeted strategies to overcome specific barriers, the NATO Innovation Fund aims to foster a resilient and impactful innovation ecosystem. This comprehensive approach ensures that critical innovations can scale effectively, meeting both civilian and military needs.
(5) Unleashing the Potential of DeepTech
By Sam Harman, Principal, Head of Deep Tech, Oxford Science Enterprises
Sam Harman from Oxford Science Enterprises presented key strategies for unlocking the potential of DeepTech, emphasizing the unique challenges and opportunities in this sector. Here are the main points:
About Oxford Science Enterprises
- Oxford Science Enterprises is an independent, billion-pound investment company.
- It partners with the University of Oxford to found, fund, and build transformational businesses.
- The company turns advanced science and technology innovations into companies that tackle the world’s toughest challenges.
- It provides patient capital from leading international investors.
Resilience of DeepTech Investments
DeepTech was highlighted as a highly resilient investment category. Despite a general downturn in venture capital funding across various sectors in Europe between 2022 and 2023, DeepTech saw positive growth. This underscores its potential for sustained investment even in challenging economic climates.
Perils of DeepTech Investing
Investing in DeepTech comes with several challenges compared to traditional tech investments:
- Higher capital requirements
- Higher technology risk
- Higher team risk
- Longer time to success
- Lower clarity of success indicators.
Strategies for DeepTech Success
Sam offerered several strategies to improve the odds for DeepTech founders and investors:
Thought 1: Stop Talking About 'DeepTech'
- Develop a go-to-market (GTM) playbook.
- Establish milestone clarity.
- Build strong investor networks.
- Integrate into incumbent ecosystems.
- Provide clear exit strategies.
- Utilize computing infrastructure and AI toolchains.
- Focus on areas like future fuels, energy storage, industrial SaaS, mobility, bio-ag, ag SaaS, and sensing & measurement.
Thought 2: Recognize and Optimize for Different Risk Profiles
- Understand various types of risks, including market size, competition, team, technology, capital, and market viability.
- Differentiate between 'moonshots' (high-risk, high-reward) and 'roofshots' (moderate risk, moderate reward) to optimize investment strategies.
Thought 3: Pair Technical and Commercial Talent Early
- Early collaboration between technical and commercial talent ensures that solutions are aligned with market needs, enhancing the viability and impact of innovations.
Thought 4: Upgrade University Ecosystems into Startup Factories
- Universities should be transformed into ecosystems that function as startup factories, providing the necessary support and infrastructure to turn academic research into successful commercial ventures.
In Summary
Unleashing the potential of DeepTech requires a nuanced understanding of the sector's unique challenges and a strategic approach to investment and development. By leveraging resilient investment strategies, optimizing risk profiles, fostering early collaboration between technical and commercial talent, and enhancing university ecosystems, DeepTech can achieve significant impact and growth in addressing global challenges.
www.oxfordscienceenterprises.com
CONCLUSION
We extend our sincerest thanks to all speakers, attendees, and organizers for making this Growth Workshop a resounding success. Your insights and collaboration have set a promising course for the future of National Security innovation. With the strategies, funding opportunities, and partnerships highlighted, we are optimistic about accelerating technological advancements that will enhance our collective security. Together, we are driving forward a new era of innovation and resilience in National Security.
