Sean Bielat

Last week, I had the pleasure of moderating a discussion on navigating FOAK in climate tech at the Greentown Labs Summit in Boston (which had >600 people!!). Here’s a quick rundown of what was shared by Katherine St. James of Spring Lane Capital, Paris Smalls, PhD of Eden GeoPower, and Hannah Friedman of Planeteer Capital: 🌱 What is the definition of FOAK? We discussed how the term can be controversial - it's almost too general because it doesn't identify what kind of "First" FOAK refers to - first team project? First geography? First of a technology in a sector? First time for the integration of a system? It's also too specific because it has the word "first" in it, which can be anathema to later stage / project finance investors. 💰 Partnerships for Funding FOAK Projects We discussed how important it is to build a blended capital stack & use off-balance sheet capital for a project so you're not using the most expensive equity dollars to fund an infrastructure project with low-ish IRR. We also talked through being creative about using corporate partners to provide in-kind services or ink some agreement (at least an LOI) to attract this funding. 🏛 Role of Government We talked about how government capital is seen by investors & how it can be catalytic for FOAK. Government capital can provide validation that a startup has passed a rigorous diligence process by a third party - and incentives like grants or credits can help improve returns for the first project- but it's important to be doing this in conjunction with getting customer validation and to be able to present line of sight to competitive economics without concessionary capital. 👥 Advice for FOAK startups The panelists offered some very specific pieces of advice for startups going through FOAK: how to get creative with things like revenue sharing agreements or convertible notes, getting smart with project development early on (like with DeveloperU), being careful about using FOAK too liberally with certain investor groups, getting the right commercialization / FOAK talent in and around you early Huge thanks to the panelists and the team at Greentown Labs (Jill Kirkpatrick, Julia Travaglini, Aisling Carlson, etc you rocked it!!) for hosting this discussion on bridging the FOAK gap. Also immensely enjoyed the rest of the agenda. Check out the full recap & videos here: https://lnkd.in/d9ApYe9Y #ClimateTech #FOAK #ClimateFinance #ProjectDevelopment #GreenTech #CleanEnergy

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Data from the International Energy Agency (IEA) illustrates the current "readiness" of #ClimateTechs + their potential impact on carbon reduction. As shown, many techs are at an early stage of being able to have a material impact. Concerningly, some tech funds recently returned capital back to investors recently + closed their funds - citing inability to fund capital intensive techs, found in areas like ClimateTech. This in part may be contributing to the $2 trillion shortfall in ClimateTech, that Deloitte estimates. What this may mean for the future? - The migration of LPs to global, super VC funds within ClimateTech, given the large capital pools needed to fund tech development - Greater specialization from smaller funds, energizing more niche elements of the ClimateTech market - but also altering their / LP's risk profile - A greater role to be played by debt financing in funding growth entities at an earlier stage - impacting cashflow dynamics Will be an interesting space to watch moving forward. We at The Proptech Connection are constantly working with all parts of the Proptech ecosystem. From the leading LPs, funds, techs and adopters in market, providing an independent view. Reach out to us today to find out how we can help. #InvestorTrends #Strategy #Global Ivo van Breukelen Stuart Daun Kiki C. Ethan Ward

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The Seraphim Space Accelerator Investor Showcase platform is live! ⚡ 📺 Don’t miss the opportunity to view pitches from the Mission 14 cohort companies, access direct introductions to their teams, explore the new Insights Service, and learn more about applications for Mission 15. → Register here: https://lnkd.in/enXc27Py 💧 Acquora: Tackling the $1 trillion water management market with sustainable solutions for global access. 🌱 Artemis Earth: Scaling biodiversity monitoring with satellites to support ESG goals and sustainable decisions. 📡 Constellation Technologies & Operations: Revolutionising telecom with a satellite broadband constellation for affordable, sustainable internet. 🤖 ROVIAL Space: Advancing orbital assembly and repair with AI-driven robotics. 🌍 FlyPix.AI: Providing Earth insights through satellite and drone imagery via an AI-powered SaaS platform. 🛰️ Planetary Systems AI: Using AI, digital twins, and machine learning to optimise decision-making in planetary operations. 🌐 SARsatX: Delivering customisable, near-real-time Earth observation insights through an integrated SAR-optical satellite network. 🔧 FORG3D: Transforming metal manufacturing with 3D printed forgings for Earth and space applications. 🔋 SPACELIS (NATO DIANA): Innovating ultra-light flexible solar cells for sustainable energy in space exploration. 📶 Tiami Networks: Creating secure, 5G-enabled systems with ISAC capabilities for critical data and communications. Huge thank you to our Accelerator partners for their continuous support throughout the program: European Space Agency - ESA, UK Space Agency, Dentons, Airbus, JSAT INTERNATIONAL, INC., Telespazio, Thales Alenia Space, Leidos, NEC Corporation, Department for Business and Trade Rob Desborough, Alexander Holt, Ellie Gyaurova, Alessandro Braglia, Aida Khalil #SeraphimSpace #SSA #SpaceEconomy #SpaceTech #SSAM14 #InvestInSpace #InvestorShowcase

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The NTIA/Verisign Cooperative Agreement for .Com impacts the fundamental workings of the Internet infrastructure and US digital sovereignty. This article in Circle ID from last week sums up the problems of the Internet Plumbing Monopolies. Is Verisign a Monopoly? Does It Matter? https://lnkd.in/eQ2UrGu4 Here is my response to the article: Your arguments regarding the price of .com are logical; however, the issue of Verisign’s monopoly extends beyond just .com pricing. It also concerns the monopoly power that Verisign holds within the DNS ecosystem, a power given it through the NTIA Cooperative Agreement and Amendment 35 without any US public or Congressional input or oversight. This monopoly power has significant implications for undermining ICANN’s “multi-stakeholder” process. We have seen this in several instances, such as Verisign’s failure to implement a “Thick WHOIS,” despite being an agreed-upon consensus “multi-stakeholder” policy of ICANN back in 2016 (and now required as part of NIS2). Furthermore, Verisign has collaborated with other “contracted parties” to narrow the definition of DNS Abuse by excluding CSAM and IP violations even though the US and EU DNS Abuse definitions include both. Even more troubling is that Verisign has been colluding with ICANN to secure its policy objectives that are counter to the protection of US cybersecurity and consumer/child protection. This has occurred through bilateral contract negotiations - such as those involving .com price increases, DNS Abuse definition, and blocking efforts to ensure an open, accurate, and accessible WHOIS - and ICANN policies involving NIS2 and the US cybersecurity reporting law (CISA). #versign #icann #whois #darkwhois #internetplumbingmonopolies #nationalsecurity #cybersecurity  

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Defense tech is booming—but who will actually win? A look at the startups and investors prepared to thrive in this complex industry. https://buff.ly/4gFGbsr

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Led by Anduril, defense tech funding sets a new record this year | TechCrunch https://buff.ly/4129kts Anduril, a leader in defense technology, has driven defense tech funding to an unprecedented high this year. Investments in this sector have surged, reflecting a growing interest in advanced military solutions and cutting-edge innovations. This milestone underscores the increasing importance of tech-driven defense initiatives in modern security strategies. As global tensions rise, there's a notable shift towards integrating AI, robotics, and autonomous systems into defense operations. The record-breaking funding highlights the critical role technology plays in national and international security landscapes. #DefenseTech #InnovationInSecurity

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Excited to announce our investment in Alta Resource Technologies alongside Leonardo Banchik (Voyager Ventures) with participation from Orion Resource Partners, Overture Ventures, and WovenEarth Ventures. Rare earths are critical in products from magnets to ceramics and it's important for the US to develop its own supply chain. While the US has some of the best rare earth resources, separating them has historically proven expensive and environmentally unfriendly. Alta through it's computationally designed and optimized proteins allows the US to bring back rare earth production with a cleaner, lower capex, and lower opex solution - and that's just the beginning. Congrats to Nathan Ratledge and the entire Alta team. Read more here: https://lnkd.in/gbGnAJn3

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Interesting piece from Marc Andreessen on how startups are not getting the regulatory support they need to sustain America's technological leadership. "Regulatory agencies have been green lit to use brute force investigations, prosecutions, intimidation, and threats to hobble new industries, such as Blockchain. Regulatory agencies are being green lit in real time to do the same to Artificial Intelligence." While many investors themselves (both in the US and Europe) are worried how AI will change our lives, our jobs and social interactions, the top VC opinion leader thinks regulation is already too restrictive. #techstartups #techleadership #strategicgrowth

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EVelution Energy applauds Jeffrey Nadaner’s precise grasp of the steps necessitated to orchestrate public and private capital to secure allied supply chains. This effort also requires support from U.S. Department of the Treasury and United States Department of Commerce to ensure American manufacturing has a path to sustainable economic prosperity. Software is important, but hardware operated by an American workforce is critical. It is incumbent on private capital (ie, investment fiduciaries to #pensionfunds) to participate in defending the national security interest underpinning our capital markets. Alliance for American Manufacturing

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Today, the House Armed Services Committee Republicans held a hearing on Fielding Technology and Innovation: Industry Views on Department Of Defense Acquisition. If you stand anywhere near the arena of defense technology innovation, just the opening comments are a sufficient call to action. While emerging tech companies like Skydio, Shield AI, Saildrone, Applied Intuition, and Palantir Technologies spoke, they represented startups of all stages in an illuminating discourse about the change needed. While the services may have all the authorities they need, the authorities they have will lead to status quo solutions. Based on their statements, here are five solutions to real problems in the defense innovation ecosystem. 1. Surge American Small Drones to Ukraine and Scale Across U.S. Military: Provide small, dual-use drones to Ukraine to aid their defense and enhance U.S. military preparedness through real-world battlefield feedback. Additionally, drone procurement should be significantly scaled across all military levels to ensure mass availability in great-power conflicts. Leverage a real operating environment to rapidly iterate solutions that provide warfighting advantage. 2. Adopt Flexible, Portfolio-Based Acquisition to Keep Pace with Innovation: Shift to a portfolio-based acquisition model, allowing for faster integration and removal of technologies while using faster procurement pathways like Defense Logistics Agency’s Tailored Logistics Support (TLS) to acquire emerging capabilities quickly. 3. Create a Problem-Based Acquisition System with Flexible Budgeting:  Implement a problem-based acquisition system centered on solving real defense challenges with flexible resourcing, ensuring the Department of Defense can rapidly adapt to evolving threats and technologies. This can offset traditional acquisition systems focus on rigid requirements, which stifles innovation and delays meeting urgent needs. 4. Establish a Bridge Fund for Rapid Technology Deployment:  Create a dedicated "bridge fund" to immediately scale proven technologies from programs like the Defense Innovation Unit (DIU), enabling deployment before formal budget appropriations are secured.  It is a long, fragile bridge across the Second Valley of Death between validating innovative technologies and deploying them at scale. 5. Streamline the Accreditation Process for Faster Adoption of Commercial Solutions: Simplify and standardize the Authority to Operate (ATO) process across the DoD, allowing faster integration of commercial technologies while reducing the burden on non-traditional defense companies.  Lower bureaucratic barriers that delay access to cutting-edge technologies. Congress and the DoD need to set the conditions that allow defense acquisition to match the speed and scale of industry innovation instead of throttling it, lest we end up with the X-15 Cruise Basselope, a solution that does not fit the problem despite being written to meet the "requirement".

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Michael A. Brown at Shield Capital writes in Forbes to outline some ways that the Government could align U.S. national technology priorities with venture capital incentives to "accelerate the development of hardware and capital-intensive technologies, foster innovation, and strengthen the industrial base." Some of his recommendations: Establish a decision authority within the U.S. government (such The Office of Science and Technology Policy) tasked to prioritize technologies for commercial development. Then, "once prioritized, a government body with programmatic capability could ensure that the team, market, tech (and if necessary complementary capital) are in place to stimulate venture investment for hardware-based technologies." Next, "form a network of entrepreneurs with different business-building skills and hire recruiting firms to expand this network..." To promote transparency and stimulate early spending for new technologies, "the DoD could consider a special defense working capital fund to facilitate rapid contracts that the Services can repay with follow-on appropriated funds." Lastly, develop a public capital framework "based on capital intensity and product maturity guides where government incentives will be most effective to motivate venture capitalists to invest in hardware or capital-intensive businesses." Some creative and compelling ideas for stimulating investment in new defense technologies while leveraging the strengths of the private venture capital markets. https://lnkd.in/eU3quryG #defenseinnovation #defensetech 

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Check out my recent post on why President Trump is the forcing function for us to solve the “Missing Middle” and catch the industrial Tsunami of onshoring coming to the US!

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Garrett Smith would have you believe he's "a head in the clouds, visionary CEO who's not grounded in reality." But Reveal Technology's story proves otherwise. While some defense tech startups chase headlines and trade show sponsorships, Garrett and his team have quietly become the first commercial software solution certified on the Army's mobile network. Today on #CrossingtheValley, I sat down with Garrett and Dave Caudle, the company's VP of Defense, to unpack how a small team is revolutionizing tactical edge operations. This episode just might change how you think about defense tech. We cover: 🎯 The Power of Tactical Truth While others pitched PowerPoints to generals, Reveal spent time on ranges with sergeants and lieutenants, building capabilities they wished they had in combat. Result? When they finally met program leadership, the grassroots demand was undeniable. 💡 The Integration Revelation Most founders obsess over technology readiness (TRL). Reveal discovered early that integration readiness (IRL) is the real kingmaker. It's not enough to build great software – it has to seamlessly integrate into the warfighter's complex ecosystem. 🤝 The Platform Play What started as an edge mapping solution is morphing into something much bigger. With a recent acquisition and a $33.6M STRATFI award, Reveal is positioning to become the standard platform for AI-enabled operations at the tactical edge. Full episode available now at ValleyCrossers (dot) Com. Whether you're a founder, investor, or acquisition professional, you don't want to miss this. #DefenseTech #Military #Innovation #Leadership

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A potential DoD venture fellowship program would be wonderful news for the world of defence tech 🚀 We need more defence-minded VCs. Current defence investment usually happens under some sort of dual use, resilience or dynamism banner. But building for both defence and civilian worlds is a distraction. Defence alone is a massive enough market with a massive hunger for technology to justify a pure defence or defence-first focus. Not many "civilian" VCs get it. We also need more investment into "applied" defence technology. Something that can show early results within a year. All the deep tech investment (materials, quantum, bio etc.) under a "maybe it could have application in defence" should not be named defence tech. There are very urgent and clear needs to be solved for right now, around technologies that have a rather clear trajectory. https://lnkd.in/d2bS8-QV

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Venture Capital Getting Bullish on Defense Tech I am posting this interesting article as I am working with a manufacturer who is the leader in personal protective gear (body armor) and is looking at growing (based on growth from purchase orders and global demand) their proprietary new designs. So, if anyone is interested in investing in the defense industry, please contact me. #defense #bodyarmor #DOD #investing #startups #business

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Good summary on the impact of drone warfare and the new arms race in innovation in this area. Key question I have is whether the defencetech startups / rapid innovators in the West have sufficient financing options to allow us to remain competitive… most funding goes to the primes and the usual supporters of rapid innovators - VC / start up funds - tend to shy away from defence sector investments. Interested in thoughts and whether dual-use product development could be more supportable… #defence #defencetech #defense #defensetech #drone

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Excited for DCVC portfolio co Alta Resource Technologies to emerge from stealth! The design space of biology is many orders of magnitude larger than inorganic chemistry, and Alta uses it to massively reduce the cost of extracting rare earth metals. https://lnkd.in/g_q5UwRF

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Lexington Books managed to release my book Disagreeing despite the Data before the election. It argues the belief segregation underway in the US may be irreversible. Today's battles over climate change, disease mitigation, and election results run deep -- they're cognitive, not just strategic. Here's the gist of it. 20th-century revolutions in the philosophy of mind, meaning, and matter uncover three surprising requirements for widespread factual agreement. Critical thinking and community building have the potential to reverse two of them -- the growing refusal to test assumptions and individual isolation. Factual agreement between groups is impossible without the third one, though -- shared projects or other meaningful interaction. And a large part of American society has insulated itself from the rest. Without shared projects, communities gradually lose the ability to tell whether they agree or not regardless of the words they use. Belief segregation with similar roots has led several developing countries to the brink of failure. We'd better watch out. The attached flyer gives a discount code that makes the book -- priced in this initial run for academic libraries -- a little more affordable. Please feel free to forward it and, if you're connected to any libraries or book stores, pass it on!

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