Building and Growing a Defense-Focused Startup
Stealth to Scale: Building and Growing a Defense-Focused Startup
Earlier this month, 10D hosted a dedicated “Stealth to Scale” panel in our offices, convening a group of founders and industry experts for a focused dialogue on the growing relevance and complexity of building startups in the defense sector.
As security concerns grow around the world and the rising demand for dual-use technologies, Israel’s defense-tech ecosystem has experienced significant momentum. As startups navigate the intersection of civilian innovation and national security applications, critical questions emerge surrounding go-to-market strategies, product-market fit, compliance, and organizational readiness.
Moderated by 10D Partner, Alon Kantor, the panel featured three leading founders in the defense-tech space:
- Ido Rozenberg, CTO & Co-Founder, Axon
- Asaf Picciotto, CEO & Co-Founder, SpectralX
- Omer Sharar, CEO & Co-Founder, InfiniDome
Panelists provided deep insights into the practical and strategic nuances of operating in the defense sector, including technology adaptation, stakeholder engagement, and the challenges of navigating procurement within security-oriented institutions. Their perspectives shed light on a sector long regarded as niche but increasingly central to both investor interest and national priorities.
Key highlights from the discussion include:
- Defense startups often emerge organically:
Many startups in the defense arena originate from technologies initially developed for civilian purposes. Often, teams identify defense applications for their solutions after market exposure or through evolving security needs.
While the product itself may require only minor adjustments—typically regulatory or integrative in nature— the real transformation lies in how the company defines the problem, communicates its value proposition, and engages with a new category of stakeholders. Terminology, framing, and domain expertise become critical. Recruiting talent with prior experience in defense or security domains can play a pivotal role in effectively repositioning the solution for this audience. - Product-market fit requires internal access:
Unlike traditional markets, the defense sector is characterized by limited access to end users and opaque procurement processes. Establishing product-market fit therefore hinges not only on technical alignment but on the ability to gain internal advocacy.
Successful companies often identify a key internal “champion”—such as a CTO within the relevant organization—who understands operational needs, budget structures, and institutional dynamics. These individuals help navigate internal processes and can significantly accelerate validation and adoption. - Exclusivity demands caution:
While exclusivity may appear advantageous, panelists cautioned that such arrangements can limit growth, particularly in early stages. A single customer may not possess the resources or organizational capacity to support ongoing development and scaling.
Instead, startups are advised to initiate engagements through standard, non-exclusive agreements. This approach enables both parties to evaluate the partnership’s strategic alignment before committing to long-term or exclusive terms. - Evolving dynamics post-conflict:
A key question raised during the session was whether the recent conflict between Israel and Hamas has resulted in structural changes in how large institutions engage with early-stage defense companies.
The panel’s consensus was measured: while greater openness to pilots and rapid engagement is observable, especially in the public sector, systemic transformation remains gradual. Nonetheless, there is a growing recognition of the strategic value that agile, innovation-driven startups offer.
Conclusion
The defense sector is undergoing meaningful change, and startups are playing an increasingly central role in shaping its future. At 10D, there is a strong belief in the power of dual-use technologies to enhance not only national security, but also to drive civilian advancements in AI, robotics, and cybersecurity.
The firm remains committed to supporting entrepreneurs building companies in defense sector—by facilitating critical conversations, unlocking access to resources, and fostering partnerships that move innovation forward.
As defense-tech continues to evolve, 10D encourages more entrepreneurs to explore the opportunities within this domain and to stay engaged with future Behind The Tech events.
