Show notes
What happens when autonomous underwater vehicles become cheap enough to manufacture at scale?
Nelson Mills is the Founder of Vatn Systems, a defense technology company building autonomous underwater vehicles. Nelson explains why undersea autonomy has lagged aerial drones, how advances in AI, navigation, manufacturing, and autonomy are changing the economics, and why Vatn is building lower-cost systems designed to operate at scale. We also discuss raising $85 million for a hardware startup, the rise of asymmetric warfare, lessons from Anduril, and what it takes to build a new defense prime.
Highlights:
- Why Nelson left venture capital to become a founder
- Why undersea autonomy is finally reaching an inflection point
- The navigation and communications problems that make underwater technology so difficult
- How Vatn raised its first $2 million pre-seed round in just 30 days
- Why hardware founders should start with the smallest viable version of their product
- Vatn’s plan to become a focused defense prime for the undersea market
- What Anduril proved about building defense technology differently
- How lower-cost underwater vehicles could change deterrence for smaller countries
- The biggest hiring lesson Nelson learned as a founder
- Why founders should always be building relationships for their next round
Guest Bio:
Nelson Mills is the Founder of Vatn Systems, a defense technology company building autonomous underwater vehicles. After growing up on the water and spending roughly nine years operating at startups, Nelson moved into venture capital before leaving to build Vatn.
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Disclaimer:
This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Pierce. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.
(0:00) How Growing Up on a Sailboat Led to Vatn Systems
(1:18) Why Nelson Left Venture Capital to Become a Founder
(6:08) Why Undersea Autonomy Is Finally Having Its Moment
(8:20) What Needs to Happen for Underwater Drones to Scale?
(11:13) How Do You Build a Company Everyone Says Is Impossible?
(12:41) How Vatn Raised $2 Million on a Dream
(20:53) How Vatn Went From Pre-Seed to $85 Million Raised
(21:48) Can Vatn Become the Next Defense Prime?
(27:42) How Defense Technology Could Change Global Deterrence
(45:21) The Advice Nelson Would Give Himself as a First-Time Founder 
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