Technology & Security

Tech Startups, VCs Connect Via Innovative Dept. of Defense Program

  • 3 min Read
  • April 29, 2021

Author

Escalon

Table of Contents

The Defense Advanced Research Projects Agency, overseen by the Department of Defense, is expanding its pilot Embedded Entrepreneurship Initiative to bring together venture capitalists and startups developing emerging technology for the agency. The program’s focus will extend beyond biotech and microelectronics to other emerging technologies, such as AI, and accelerate up to 150-DARPA-backed innovations.

In the two years since its inception, DARPA’s EEI helped 30 pre-seed research teams raise about $110 million and led to the creation of 12 companies. EEI will move from a pilot to a permanent project with the support of IQT Emerge, an arm of the not-for-profit venture capital firm In-Q-Tel and whose mission is to connect the U.S. government innovation channel with entrepreneurship.

The program teams a venture capitalist with DARPA contractors seeking to market new technologies developed with agency funding. They will assist the entrepreneurs with writing business plans and preparing pitches for American venture capital firms. Research teams will have access to DARPA’s Transition Working Group, which comprises over 100 U.S. investors and corporations experienced in supply chain development and scaling. Researchers will receive an average of $250,000 in non-dilutive funding to hire a seasoned entrepreneur or business executive for one to two years with the goal of developing a robust go-to-market strategy for both defense and commercial markets.

The EEI’s growth is illustrative of the Department of Defense view that tech projects in areas such as AI, 5G and 6G telecommunications are essential to the U.S. economic and military over the next century, according to DARPA Commercial Strategy Chief Kacy Gerst. “More and more DARPA is investing in spaces that have a massive commercial market and a small defense market, like for example, microelectronics and biotechnology,” Gerst said in an interview. “If we want the DOD to be able to use these technologies in the future, they need to be sitting within sustainable businesses.”

DARPA has assisted in laying the foundations for some of society’s most transformational technologies, such as miniaturized GPS, the internet, smartphones, commercial space access, RNA vaccines, stealth and autonomous vehicles, to name a few. However, DARPA was reportedly finding some of the universities, firms and labs they worked with to develop emerging technologies were spinning off companies that used foreign capital. The EEI program is similar to the Defense Department’s Trusted Capital Marketplace, which screens potential investors for U.S. defense contractors to confirm they do not have connections to foreign entities.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

uncategorized

Spring Clean Your Payroll: Essential HR Best Practices for Scaling Startups

Payroll is more than just issuing paychecks—it’s a complex, high-stakes process that can significantly impact employee satisfaction, legal compliance, and...

Read More
Accounting & Finance

How to Leverage Q2 Financial Data to Drive Startup Growth in the Second Half of the Year

For startups seeking sustainable growth, every quarter provides a treasure trove of data—but Q2 data can be particularly revealing. By...

Read More
Accounting & Finance

Q2 Business Planning: Adjusting Your Financial Strategy for the Rest of the Year

By the time Q2 rolls around, many startups have a clearer picture of their performance and market positioning compared to...

Read More
People Management & HR

5 Key HR Challenges to Address Before Summer to Keep Your Team Engaged

For many startups, the summer months can be a dual-edged sword. On one hand, warmer weather and looming vacations can...

Read More
Taxes

How to Maximize Your Tax Deductions: Essential Tips for Startups in Q2

Tax season often triggers stress and complexity—especially for startups laser-focused on building products, acquiring customers, and scaling operations. Yet savvy...

Read More
Startups

Mid-Year Financial Checkup: How to Assess and Adjust Your Startup’s Budget 

The halfway mark of any given year is more than just a date on the calendar; it’s a valuable checkpoint...

Read More
Consumer Goods

Inventory Accounting 101: Navigating Costing Methods and Their Impact on Financial Health 

For consumer goods companies, managing inventory efficiently is critical—not just for operations but also for financial health and risk management....

Read More
Technology & Security

Compliance Considerations for SaaS: Protecting Data and Staying Secure

As more businesses transition to Software-as-a-Service (SaaS) solutions, data security and regulatory compliance have become top priorities. From handling sensitive...

Read More
Accounting & Finance

How Outsourced Accounting Supports Scalability in Portfolio Companies 

For portfolio companies, whether backed by private equity, venture capital, or family offices, scalability is essential for maximizing value and...

Read More