Stay ConnectedFew companies make it from pilot to production in the defense market. Those who do often change the industry in the process.
How do they do it? What lessons can startups take from their trials, successes, and failures? Crossing the Valley tells the stories of the trailblazers who are forging a new path for America’s defense.
Copyright: © Noah Sheinbaum
About Nick LaRovere
Nick is the CEO and Co-founder of Pryzm. As a software engineer at Palantir Technologies, Nick worked on both Gotham and Foundry platforms, gaining firsthand exposure to building federal contracting systems and understanding the critical intersection of technology and national security missions.
A graduate of Colby College, Nick’s experience selling Palantir’s solutions to DOD and three-letter agencies provided him with intimate knowledge of the procurement pain points that would eventually inspire Pryzm’s founding mission.
Nick is part of a core founding team of four Colby College grads, each of whom experienced the pain of government acquisition: Matt Hawkins (president & COO), Justin Deckert (chief growth officer), and David Istrati (chief technology officer).
About Pryzm
Pryzm emerged from a deceptively simple observation: government procurement was drowning in PDFs and Excel spreadsheets. What started as a document processing solution has evolved into a comprehensive capture and relationship mapping platform that serves the entire defense contracting ecosystem.
The product’s core function is transforming traditional capture processes through intelligent automation and visualization. Their “Orion constellations” feature allows users to map influence networks, parse opportunities, and understand organizational relationships in ways that replace traditional whiteboards and Figma diagrams with dynamic, data-driven insights.
Pryzm serves both commercial defense contractors seeking to win government business and government agencies looking to improve their procurement processes. This dual-market approach creates network effects that strengthen the platform’s value proposition for all users. Their recent Seed funding ($12M+ led by Andreessen Horowitz’s American Dynamism team) puts them on an accelerated path across both commercial and federal segments.
Friends,
This week, we are spotlighting a new podcast in the defense community, Rebuilding the Fleet.
This new pod covers all things Maritime Autonomy and shipbuilding, featuring repeat guest Austin Gray.
This episode is a discussion between Austin and HII’s Executive Vice President Eric Chewning, a former investment banker, management consultant at McKinsey, and senior advisor to the Secretary of Defense.
All part of our efforts to promote solid content from the next generation of defense disruptors. Have a listen and if you enjoy, we encourage you to follow along and subscribe.
Key Topics of Conversation
* Workforce Innovation and Outsourcing Strategy: HII’s ambitious plan to scale outsourced work from 2 million to 3 million hours annually, and rebuilding of the sub-tier industrial base across America
* Unmanned Systems Leadership: HII’s position as the world’s largest UUV producer, the evolution of the Lionfish program and autonomous launch and recovery capabilities for the Remus vehicle family
* Industrial Base and International Partnerships: Analysis of the Korea-Hyundai partnership and how to balance domestic production with international cooperation
* Technology Integration Challenges: assessing the state of AI implementation in legacy manufacturing environments and change management challenges in traditional shipbuilding operations
* Workforce Development Excellence: HII’s Apprentice School programs and strategies for attracting talent from other industries to maritime
* Defense Policy and Budget Outlook: FY26 defense program priorities, evolution of Navy unmanned surface vessel (USV) strategy, and long-term implications for naval force structure and capabilities
Subscribe to Rebuilding the Fleet at https://www.youtube.com/@RebuildingTheFleet
Case Study: Crossing the Valley of Death in Digital Manufacturing
About Nathan Diller
Nathan Diller brings a rare combination of operational military experience, government innovation leadership, and private sector execution to the defense technology ecosystem. After 22 years of Air Force service as a test pilot, he transitioned to become Director of AFWERX, where he managed and expanded the SBIR budget, helping hundreds of startups navigate government contracting. His subsequent role on the House Appropriations Defense Subcommittee staff gave him legislative perspective on defense budgeting and acquisition. Now, as Head of Aerospace & Defense at Divergent, he’s applying this comprehensive understanding of the ecosystem to scale manufacturing innovation here in America.
About Divergent
Divergent has created the Divergent Adaptive Production System (DAPS), an end-to-end software and hardware production system for industrial digital manufacturing. The company’s approach combines digital engineering for structural optimization, software-driven printable design, efficient 3D printing with optimal part stacking, and robotic assembly. Initially proven in the automotive sector (building the world’s fastest production car at 253 mph), Divergent is now applying this technology to aerospace and defense applications. The company has raised approximately $700 million and maintains partnerships with automotive giants like Aston Martin, Bugatti, and McLaren, as well as defense contractors like General Atomics.
For more on Divergent: https://www.divergent3d.com/
For more Crossing the Valley: valleycrossers.com
About Eric
Eric didn’t start as an entrepreneur. After serving 12 years as an infantry officer in the US Army, including deployments during the Iraq and Afghanistan wars, he attended Stanford GSB while still on active duty. Exposure to business school thinking, combined with his frontline understanding of technology pain points, set him on an unexpected path. In 2017, he co-founded Key Square Labs with two technical experts, bringing a military veteran’s perspective to solving a critical but unsexy infrastructure problem.
About Key Square Labs
Key Square Labs addressed a scaling challenge that few people outside the defense community understood: the ATAK networking problem. Android Team Awareness Kit (ATAK) had become a critical situational awareness app for military users, but it relied on custom hardware with modified firmware to connect to military networks. This worked fine for a small, elite user base, but as adoption grew to hundreds of thousands of users across the joint force, the custom hardware became a bottleneck—expensive, hard to update, and limiting combat effectiveness.
Key Square’s innovation was reimagining firmware-level capabilities as application-layer software. This meant any Android device could run ATAK networking without custom hardware modifications. The company operated as a bootstrapped three-person team, funded by R&D contracts and direct sales to eight foreign governments. They never raised venture capital, yet they achieved real-world validation, including deploying with the 75th Ranger Regiment during the Afghanistan withdrawal to solve urgent communication challenges. In 2024, Key Square was acquired by Ditto, a Series B commercial company applying edge computing technology to defense problems.
So get out there and enjoy AUSA, CTV readers.
We’ll see you next week!
For more on Ditto: https://www.ditto.com/
Follow Eric: LinkedIn
About Dave Tuttle
Dave Tuttle’s career reads like preparation for exactly one mission: building defense logistics software that actually works at the tactical edge. After commissioning as an Army officer and deploying to Afghanistan, he transitioned to aerospace and defense investment banking on Wall Street, where he learned to decode J-books and understand the intricacies of defense budgeting and color of money. A second stint on active duty at Fort Bragg leading software teams within the JSOC enterprise showed him the power of great engineering paired with operational problems. This led him to Anduril, where he spent several years building their command and control hardware business and developing relationships with world-class engineers. Today, he continues serving in the National Guard while co-founding and leading Rune Technologies. His philosophy: every experience, from selling beverages to analyzing balance sheets to leading special operations software teams, compounds into a unique toolkit for navigating the defense market.
About Rune Technologies
Rune Technologies builds software platforms for military logistics and sustainment operations. Their approach challenges decades of conventional wisdom. While legacy defense contractors have tried to push enterprise cloud software down to tactical units, Rune flipped the architecture entirely. Their platform starts at the tactical edge and works upward, recognizing that military logistics is inherently a bottom-up warfighting function. The company focuses on the Army and Marine Corps initially, tackling what Dave calls “the gnarliest problem”—how to sustain a 90,000-soldier force in near-peer conflict. Beyond simple dashboards and data visualization, Rune emphasizes automated course of action recommendations and machine-paced decision-making that enables logisticians to operate at the speed required in contested environments. The company raised a seed round led by Caffeinated Capital, achieved product-market fit in nine months (half their projected timeline), and recently closed a Series A led by Human Capital. Their recent announcements include a Marine Corps pilot contract through the Warfighting Lab, an Army CRADA focused on logistics data standards, and investment from In-Q-Tel.
For more Rune: https://www.runetech.co/
For more Crossing the Valley: www.valleycrossers.com
Follow Dave: LinkedIn
About Jeff Cole
Jeff Cole is the CEO and co-founder of Hidden Level, bringing 20 years of experience developing radar and sensing technology for defense, intelligence, and commercial customers. Before founding Hidden Level, Jeff worked at Saab and SRC (a not-for-profit defense company), where he developed cutting-edge systems for customers including the Army, FAA, and NASA. He also collaborated with commercial giants like Google, Apple, Disney, and Amazon on early drone delivery initiatives, working directly with Astro Teller and Sergei Brin on what would become Wing.
Born and raised in Syracuse, New York—an epicenter for radar and electronic warfare technology—Jeff built his expertise in an ecosystem surrounded by companies like Lockheed Martin, Raytheon, and Saab. This background gave him rare insight into both the technical challenges of advanced sensing systems and the procurement realities of government customers. At SRC, he co-founded Griffin Sensors, a wholly-owned subsidiary focused on commercial applications, which shaped his vision for a commercial-first defense company.
Jeff’s approach combines technical depth with an entrepreneurial mindset learned from working with fast-moving commercial partners. His guiding principle: “If it wasn’t hard, it wouldn’t be worth doing.”
About Hidden Level
Hidden Level provides airspace awareness through passive radar and RF sensing technology that detects objects ranging from small, non-emitting drones to fighter jets and balloons. The company’s vertically integrated approach means they design and build everything in-house—software, firmware, phased arrays, and mechanical systems—using a modular “Lego” architecture that enables rapid deployment and reconfiguration.
Founded with a commercial-first strategy, Hidden Level initially focused on enabling safe drone delivery and urban air mobility through subscription-based airspace monitoring services. Early customers included NASA, Joby Aviation (formerly Uber Elevate), and commercial enterprises. This commercial foundation proved critical when transitioning to defense applications, as the technology was designed from the start for exportability, interoperability, and rapid scaling.
The company’s breakout moment came through a partnership with the U.S. Army. After starting with small SBIR contracts, Hidden Level progressed through an IDIQ vehicle with Booz Allen Hamilton as lead systems integrator, won APFIT funding in May 2023, and achieved program of record status under urgent capabilities in January 2024—just 18 months from initial prototype to fielded production systems. During the December 2024 drone crisis in New York, Hidden Level deployed sensors at Stewart International Guard Base in under 24 hours, enabling the apprehension of unauthorized drone operators within minutes.
The company has raised over $100 million from investors including Quest Ventures, DFJ, Costanoa Ventyres, Washington Harbor, Lockheed Martin Ventures, and Booz Allen Ventures. With 130+ employees and growing, Hidden Level is scaling both commercial infrastructure deployments across U.S. cities and defense applications globally.
Key Takeaways
1. Commercial-first beats defense-to-commercial for dual-use companies
Hidden Level’s approach didn’t take defense technology and try to commercialize it; instead, they built with commercial intent from day one and then adapt to defense needs. Hidden Level designed for subscription models, exportability, and interoperability—requirements that made government adoption easier, not harder. The modular architecture that enables rapid deployment in commercial settings (like the 24-hour Stewart AFB installation) directly translated to defense value. This approach avoids the vendor lock-in and compliance baggage that makes defense-to-commercial transitions so difficult.
2. Reputation and relationships create momentum that capital alone cannot
Before Hidden Level existed, Jeff and his team had delivered advanced radar systems to demanding customers for two decades. This track record meant NASA, Joby, and Army customers believed in their ability to execute even when working from a basement. When first investor Tom Moss tripled his commitment within 48 hours and introduced Jeff to other VCs, it wasn’t just about the technology—it was about backing a team with proven delivery capability. For defense tech founders, past performance and domain expertise can be more valuable than a perfect pitch deck.
3. APFIT and other bridge funds are really important to bridge the valley of death
Hidden Level used small SBIR awards to maintain customer relationships, moved to an IDIQ through partnership with Booz Allen Hamilton, then leveraged APFIT funding to procure systems when the Army customer had validated demand but lacked budget. This represents a careful understanding of which funding mechanisms match which stage of technical maturity and customer pull. APFIT worked because Hidden Level had already proven the technology and had an evangelizing customer; it wouldn’t have worked two years earlier.
4. Partnerships with primes require clear-eyed understanding of incentives and terms
Jeff’s advice on working with integrators like Booz Allen Hamilton and strategic investors like Lockheed Martin is notably nuanced. These relationships can be powerful but require understanding contractual vehicles (FAR parts 12 vs. 15), IP ownership, colors of money, and compliance requirements upfront. The relationship with Booz Allen worked because roles were clear—they were the lead systems integrator doing C2, Hidden Level provided sensors and integrated into their architecture. Going in eyes-wide-open about what the partnership actually entails prevents later frustration about doors not opening or unexpected IP constraints.
5. Intentional product architecture enables speed at scale
Hidden Level’s “Lego modular” design philosophy is a strategic choice that enabled their 18-month prototype-to-production timeline and 24-hour deployment capability. Components designed for one product line work across different applications, reducing development time for new variants when the Army wanted a vehicle-mounted system half the original size. This modularity also supports the dual-use model: the same core technology serves commercial airspace monitoring subscriptions and military counter-drone applications. Speed in defense tech isn’t about cutting corners—it’s about making architectural choices that create optionality and reduce integration friction from the start.
For more on Hidden Level: Website | LinkedIn
For more Crossing the Valley: Substack | YouTube | LinkedIn
Follow Jeff: LinkedIn
From University Lab to Critical Defense Supplier
About Jonathan Rowntree
Jonathan Rowntree brings three decades of materials commercialization experience to his role as CEO of Niron Magnetics. His background spans scaling technologies across consumer electronics, industrial applications, automotive, and defense sectors. Before joining Niron in 2022, Rowntree led global businesses and specialized in taking new material technologies from development to market-scale production. His experience includes both successful ventures and instructive failures in solar thermal materials and heat transfer applications. Rowntree describes his 30-year career as an "apprenticeship" that prepared him to tackle the unique challenges of scaling breakthrough magnet technology during a critical geopolitical moment.
About Niron Magnetics
Founded in 2013 and spun out of University of Minnesota research, Niron Magnetics has developed the world's most powerful rare earth-free permanent magnet using iron nitride technology. The company's breakthrough material delivers 2.4 Tesla magnetic strength compared to 1.4 Tesla for traditional rare earth magnets, while using abundant materials (iron and nitrogen) that can be sourced anywhere. Niron has raised over $150 million in development funding and secured strategic investments from automotive OEMs (GM, Stellantis), tier-one suppliers (Magna, Allison), and technology companies (Samsung). The company serves multiple markets including audio, industrial motors, automotive, and defense applications. Their first commercial manufacturing facility breaks ground in fall 2025 in Minnesota, with plans for global expansion to meet tripling demand by 2030.
For more Crossing the Valley: https://www.linkedin.com/company/crossing-the-valley
For more on Niron: https://www.nironmagnetics.com/
About Dan Wright
Dan combines deep operational experience with strategic thinking about technological competition. Starting his career as a lawyer at Goodwin Proctor, Wright made the transition to technology by joining AppDynamics as one of the early employees, eventually becoming COO. He then served as CEO of DataRobot before co-founding Armada in 2022.
Dan combines three critical elements that prepared him for building Armada: legal expertise that taught him to understand complex regulatory environments, operational experience scaling enterprise software companies, and a data-centric worldview developed across three technology companies focused on extracting value from information.
About Armada
Armada has positioned itself as "the hyperscaler for the edge" - building distributed cloud infrastructure for the 70% of the world not served by traditional data centers. The company's core product line consists of modular data centers called Galleons, ranging from suitcase-sized units (Beacon) to megawatt-scale facilities (Leviathan).
The company's strategy centers on three technological convergences: Starlink bringing fiber-quality connectivity to remote locations, the explosive growth of edge data generation (75% of all data by 2025), and the rise of AI capabilities. Armada combines these trends into a full-stack platform that processes data locally rather than sending it to centralized cloud facilities.
Operating across 70+ countries with over 10,000 connected assets, Armada serves both defense customers (including active work with the US Navy) and industrial clients in energy, mining, and manufacturing. The company has raised over $200 million from investors including Founders Fund, Lux Capital, and Microsoft, with their latest $131 million round announced alongside their "American AI Dominance" strategic framework.
To learn more about Armada: https://www.armada.ai/
Follow Dan: https://www.linkedin.com/in/wrightdh
Follow Crossing the Valley: https://www.linkedin.com/company/crossing-the-valley
Case Study: Blue Water Autonomy's Lightning-Fast Series A
About the Guests
Rylan Hamilton is Co-founder and CEO of Blue Water Autonomy, bringing a unique combination of naval service and commercial robotics expertise. After his Navy career, Hamilton spent years in the commercial robotics space focusing on warehouse and logistics automation, giving him deep understanding of both military requirements and commercial-scale robotics deployment.
Austin Gray is Co-founder of Blue Water Autonomy and a prominent voice in the maritime autonomy and defense technology movement. Gray combines operational understanding of defense acquisition challenges with strategic thinking about how commercial innovation can reshape military capabilities.
About Blue Water Autonomy
Blue Water Autonomy is developing medium unmanned surface vessels specifically designed for U.S. Navy operations. Based outside Boston, the company is building on the region's robotics expertise, drawing talent from successful companies like Amazon Robotics and iRobot.
Their vessels are approximately half a football field in length - large enough for cross-ocean operations but small enough to be manufactured at dozens of mid-tier shipyards rather than requiring major naval facilities. The company focuses on creating "attritable" platforms that balance capability with cost-effectiveness, designed around cost-to-kill ratios rather than pure survivability.
The team has grown rapidly from stealth to over 50 employees, including key hires like COO Tim Glinatsis (20+ years in naval shipbuilding) and ship designer Ryan Maatta (formerly on a DARPA autonomous ship program).
Fortem Technologies - From Radar Innovation to Counter-UAS Leader
About Jon Gruen
Jon brings a unique combination of operational experience and defense industry knowledge to his role as CEO of Fortem Technologies. After graduating from the U.S. Naval Academy, he served 10 years on active duty as a Navy SEAL, including multiple deployments to Afghanistan and Iraq during Operations Enduring Freedom and Iraqi Freedom.
His transition to the private sector began in 2007 when he joined the Navy Reserve while simultaneously building his commercial career. He spent 11 years at Lockheed Martin learning acquisition processes and big program management, while concurrently commanding unmanned aerial system units in the reserves for four years. This dual perspective gave him front-row seats to both the traditional defense contracting world and the emerging defense innovation ecosystem.
Before joining Fortem, Gruen worked as an operational consultant helping multiple aerospace and defense startups navigate the valley of death. He took the helm at Fortem in 2022.
About Fortem Technologies
Founded in 2016 by Adam Robertson, Fortem Technologies began as a radar company leveraging Robertson's decades of experience developing military radars, particularly for IED detection during the Wars on Terror. Robertson's breakthrough was creating an architecture that enabled very low size, weight, power, and cost (SWAP-C) radar systems.
The company's evolution accelerated when DARPA recognized the potential of their small radar technology and suggested mounting it on drones in 2018. This led to Fortem developing comprehensive counter-UAS solutions spanning the entire detect-to-mitigate spectrum:
* Ground-based and airborne radars with edge computing and AI
* Command and control software integrating multiple sensors
* A family of counter-UAS drones using various effectors (nets, explosives, future high-powered microwave)
* Man-portable systems that fit in commercial trucks for tactical mobility
Fortem has been operationally deployed in Ukraine for over three years, working with border guards and other units while providing real-time intelligence on electronic warfare environments to U.S. government agencies. They've also developed significant homeland security capabilities, becoming the only approved kinetic solution for safely removing drone threats in the continental United States.
For more on Fortem: fortemtech.com
For more Crossing the Valley: valleycrossers.com
Our TOPPODCAST Picks 
