How Startups Can Break into Dual-Use: Lessons from the Field by Tim Balz
For early-stage startups, especially those far from the coasts or outside traditional defense
circles, the idea of working with the government often brings up images of bureaucracy,
slow-moving contracts and mission drift. But for founders looking to build resilient businesses,
the dual-use pathway—where technology serves both commercial and government
markets—offers a valuable and often overlooked growth strategy.
Don’t Dismiss Government Contracts Out of Hand
One of the most common pieces of startup advice is to avoid government contracts entirely.
They’re perceived as slow, complex and incompatible with the pace of a nimble team. However,
this advice doesn’t always hold up. Programs like the Small Business Innovation Research (SBIR)
initiative is specifically structured to support startups, offering both early non-dilutive funding
and a built-in customer base. Some companies even find ways to skip Phase I of the SBIR
process and move directly to Phase II by securing a letter of support from a government
stakeholder. Kalogon, for example, did just that after demonstrating the viability of our
technology to the Air Force. For founders with a working product and a potential government
use case, this accelerated path can bypass a lot of the red tape typically associated with public
sector work.
Leverage Serendipity, but Be Ready to Act
Government engagement doesn’t always come from traditional procurement channels. In
Kalogon’s case, a tech scout from the Air Force happened to visit our co-working space and
saw immediate potential for our smart seating cushion in military aviation. This kind of
serendipitous connection was only possible because the company maintained visibility within
the startup ecosystem and was ready to talk about the broader applications of their
technology. For other founders, this underscores the value of staying active in incubators,
demo days, and industry events, where potential partners, including government reps, may be
quietly looking for solutions. Be open to unexpected opportunities and prepared to act on
them.
Speed Still Wins
Another myth worth challenging is that government work always moves slowly. While certain
procurement processes can be cumbersome, startups that maintain internal agility can still
operate at a high speed. Kalogon managed to fulfill urgent Air Force requests by leveraging its
in-house manufacturing and engineering capabilities. When a pilot asked for a product
modification, we didn’t need months for contract approval—we made the adjustment in days.
This level of responsiveness was only possible because our team maintained control over key
aspects of our product development. For other startups, this is a powerful reminder: owning
your production processes and keeping multidisciplinary teams under one roof can
dramatically improve your ability to serve dual-use markets effectively.
Build Systems That Serve Both Markets
Importantly, companies that succeed in dual use often do so because they solve a problem
that exists in multiple domains. Kalogon’s cushions were originally designed for wheelchair
users, but the underlying challenge—managing long-term seated pressure and
discomfort—also affected military pilots on extended missions. This overlap created a natural
expansion point. Rather than pivoting away from our core mission, we found a parallel
application that reinforced it. Startups should take note: the most compelling dual-use
technologies tend to emerge not from chasing contracts, but instead from solving real,
well-understood problems that transcend industry lines.
Choose Your Investors Wisely
Investor alignment is another important piece of the puzzle. Startups often worry that pursuing
government contracts will raise red flags with venture capitalists who expect rapid growth and
clear exit timelines. In Kalogon’s case, initial investor skepticism gave way to support once they
saw that defense-related R&D was directly improving commercial product quality. This synergy
between public and private sectors can actually enhance investor confidence when it’s clearly
communicated. Founders should be proactive about educating their backers, showing how
government partnerships don’t dilute focus but instead bolster the core business.
Startups should always start with the problem. Technology-first approaches often struggle to
gain traction because they’re solving for novelty rather than necessity. Kalogon’s success
stemmed from addressing a critical health issue for wheelchair users—a challenge with real
stakes and real urgency. When it turned out that military pilots had the same problem, the
transition into defense was authentic, not forced. That authenticity is what wins customers and
contracts, whether they’re in the private sector or the Pentagon. For founders weighing the
leap into dual-use, the message is clear: solve something that matters, stay agile, and don’t be
afraid to engage beyond the usual startup playbook. The opportunities are there—if you’re
ready for them.
Here’s to solving real problems – no matter where they sit.