Key Takeaways
- The Pentagon’s Defense Innovation Unit (DIU) has launched an accelerator program for university startups.
- This initiative targets “dual-use” companies developing technology for both commercial and military purposes.
- Selected early-stage startups will receive funding, mentorship, and connections within the Department of Defense (DoD).
- The program reflects a rising interest in defense technology among students and venture capitalists.
The Pentagon is actively seeking the next generation of defense technology, and it’s turning to college campuses to find it. The Defense Innovation Unit (DIU), the Defense Department’s arm for emerging tech, has just rolled out a new university accelerator program.
This 12-week initiative is structured much like a top-tier startup incubator, but with a military focus. It’s designed to support fledgling companies whose innovations can serve both civilian markets and defense needs.
Applications are open until late June. Fifteen teams from U.S. universities, specializing in areas like artificial intelligence, cybersecurity, and space, will be chosen to share $500,000 in funding. They’ll also gain mentorship and direct access to the DoD.
This program evolves from earlier efforts like the National Security Innovation Network’s Emerge program, according to DIU project manager Josh Carter. He told Business Insider that the core mission remains “to help early-stage tech companies founded within the US university system engage with the DoD.”
The accelerator also taps into a growing trend: students at top universities are increasingly drawn to national security and defense tech. This shift is partly driven by geopolitical urgency and a significant influx of venture capital into the field.
Beyond student interest, the initiative underscores a growing investor appetite for “dual-use” startups. The DIU believes that companies catering to both commercial and defense sectors have a better shot at long-term viability. Carter noted that having both public and private sector applications offers “a better opportunity to achieve long-term sustainability and growth.”
Several scaling startups already operate in both arenas. “The most promising companies will prove their product market fit in one end market — either commercial or government — and then leverage that success to break into the other,” Mina Faltas, founder of Washington Harbour Partners, explained to Business Insider.
For instance, Hadrian is building automated factories for hardware parts, particularly for aerospace and defense. CHAOS Industries develops software for critical industries and defense, and Scale AI, which provides training data for AI giants, recently signed a contract with the Defense Department.
However, investors caution that becoming dual-use doesn’t happen instantly. “Typically, startups focus first on selling to either commercial or government customers, since the execution of each lane is quite distinct,” Faltas said.
Jackson Moses, founder of Silent Ventures, a defense tech fund, commented that most dual-use startups expand into a second market only after maturing. He told Business Insider, “Startups require early, narrow focus to succeed,” adding that successful dual-use strategies often unfold over a longer period.
Despite the enthusiasm, some remain skeptical. Jake Chapman of Marque Ventures, a national security-focused firm, believes the industry’s fixation on dual-use can be a diversion. “Too many DoD problems are defense problems, not dual-use problems,” he stated to Business Insider, expressing concern that an overemphasis on dual-use could disadvantage startups focused solely on defense solutions.
