Why Defense Contractors Care about Spin-In
- Growth is elusive – over half of the Fortune 500 companies declined in revenue 2000-2002, and only a quarter grew more than 10%
- All five of the largest U.S. defense firms have articulated objectives to “grow faster than our market”; obviously, not all five can succeed at this
- Moreover, the recent buoyancy in defense spending is clearly waning, putting pressure on growth
- One major underexploited growth avenue is sourcing innovations from outside the defense contractor base, and moving those innovations through the defense contractor’s “channels”
- Customers such as Deputy Undersecretary of Defense for Industrial Policy Suzanne Patrick have vocally advocated this; Bringing new innovations would “thrill the customer”
- Incremental funding may be possible for solutions to needs truly unmet by the established contractor base
- DoD finds it too hard to deal directly with these non-defense commercial companies
- However, most defense firms lack an effective working interface to seek out and consummate deals bringing innovative technologies from outside their industry to their own core government customers
- TechSpin is uniquely positioned to provide that “missing link”
- We can leverage our network of contacts in the venture capital community to source potential spin-in opportunities for our defense clients
- We understand defense technologies and defense contracting, making us an effective partner to defense companies as well
- Complementary to our “Spin-Out” value proposition
