This month the Pentagon took a system built to knock drones out of the sky, ran it for two days at a Marine air station on the Arizona border, and then cleared it for use across the entire U.S. military. The system is CACI’s SkyValor, and the task force behind it has been quietly moving hundreds of millions of dollars into counter-drone hardware pointed, in part, at the homeland. Most of the coverage filed this under defense procurement. I read it as the clearest example this year of something I press on every hard-tech founder with a defense-adjacent platform: the line between the battlefield version of your product and the civilian version is thinner than you want it to be, and which road you build for is a choice you make on purpose or by drift.
The twelve-lines version of dual-use
Years ago I toured a research group working on a satellite robot. The idea was to launch it into orbit, have it chase down satellites that had run out of fuel, couple with them, drill into the tank, top them off, and patch the hole. Clever piece of engineering. I turned to the person next to me and said the difference between a robot that heals a satellite and one that kills satellites is probably twelve lines of code. He gave me a knowing look and said, that may be, but we don’t talk about that.
That is the whole dual-use problem in one exchange. The propulsion, the rendezvous, the autonomy, the hardware all transfer. Only the target and the intent change. Look at what SkyValor actually does and the same thinness shows up. It senses autonomously around the clock, picks up threats more than forty miles out in some cases, and defeats them without firing a shot, jamming their signals or snaring them in nets from almost four miles off. Strip the word “threat” off that description and you have airport perimeter security, prison airspace control, stadium and critical-infrastructure protection, wildfire and search-and-rescue tracking. The radar does not know whether the drone overhead is a smuggler, a hobbyist, or hostile. The rules of engagement do.
What does not transfer is the validation history
The same week, the same task force handed Perennial Autonomy a $500 million three-year contract for its Merops interceptor. The number that matters there is not the contract. By the company’s account the Merops has shot down more than four thousand Russian drones over Ukraine since 2024, and the Army has bought roughly thirteen thousand of them at about fifteen thousand dollars each. That combat record is the reason it costs a fraction of a missile and can field after a short trial instead of a decade-long program. The airframe is replicable. Four thousand real intercepts against an adversary who adapts every week are not.
For a founder, that is the part worth sitting with. The thing a competitor cannot lift off your spec sheet is the environment where your system has piled up real, adversarial failure data. I have watched founders burn a year chasing a benchmark in a clean lab when a quarter of that effort aimed at messy field deployment would have bought them something no rival could fake. If your platform has two roads, the question is which one is generating that hard-won data, and whether it is the road you actually want to be your larger market.
Dave’s take
I will analyze the defense-procurement map all day. I am more careful about who I will help build on it. When a founder brings me a platform like this, the first thing I want is to see the two roads it can travel, the kinetic one and the one that comes home to an airport, a hospital, a power plant. If the only honest answer is the war road aimed at people, I am not their guy. If there is a real civilian road, it is usually the bigger market anyway, and the battlefield is just the customer rich enough to pay for the hard parts first.
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Dave Saunders is the founder of Base Reality Group and a Fractional CPO for hard-tech founders. He was a founder and operator at Galen Robotics, where the surgical-robotics platform earned FDA De Novo authorization in 2023, and he managed a 35-patent portfolio licensed from Johns Hopkins. He wrote Founders Who Finish and publishes The Build. More about Dave →