39: An Innovative Arsenal of Democracy Benefits More than Just Defense (feat. Adam Hammer)
Aug 28, 2024
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Adam Hammer, Co-founder and CEO of Roadrunner Venture Studios, dives into the realm of deep tech and its pivotal role in national defense and innovation. He discusses how entrepreneurs can leverage disruptive technologies and the significance of patient capital in nurturing groundbreaking ideas. Hammer highlights innovative funding strategies that support deep tech in places like New Mexico and emphasizes the importance of collaboration between public research and private sectors to enhance U.S. competitiveness in the global landscape.
Deep tech, encompassing advanced manufacturing and microelectronics, is crucial for national security and economic growth in today's competitive landscape.
The success of deep tech startups relies heavily on exceptional founders and strategic government partnerships for long-term, patient capital investments.
Deep dives
Understanding Deep Tech and Its Relevance
Deep tech refers to foundational technologies essential for national security and economic competitiveness. It encompasses areas such as advanced manufacturing, energy technologies, and microelectronics, all vital for modern innovation and defense. The conversation highlights how these technologies must evolve in today’s landscape, especially in light of historical lessons like the Sputnik moment which catalyzed US attention on technological leadership. Winning in these domains not only fosters economic growth but also enhances the country’s security posture on the global stage.
The Role of Roadrunner Venture Studios
Roadrunner Venture Studios operates as a company creation factory, transforming raw disruptive ideas into viable startups. This model is distinct from traditional accelerators, as it starts from foundational concepts, often derived from national lab research. By partnering with local entities and drawing on resources like the State Investment Council, Roadrunner seeks to bridge the gap between early-stage innovations and market-ready products. This innovative approach aims to revitalize overlooked regions while focusing on deep tech's role in strengthening American competitiveness.
The Importance of Patient Capital
Patient capital is crucial for deep tech ventures, given the high engineering risks and extensive timelines involved in developing foundational technologies. Unlike traditional venture capital, which often demands quick returns, patient capital allows for long-term investment in groundbreaking ideas that may take a decade to realize significant outcomes. Roadrunner strategically seeks out such capital to nurture startups from inception to maturation, ensuring they are adequately funded while reducing engineering risks through grants. This underscores the inherent need for sustainable investment models that are willing to support transformative technologies over an extended period.
Lessons Learned and Future Directions
One significant lesson from Roadrunner's first year is the importance of focusing on remarkable founders rather than solely on the technology. Exceptional founders possess the creativity and resilience essential for navigating the complexities of deep tech markets. Additionally, the integration of government partnerships for non-dilutive funding is vital, as it supports entrepreneurs while mitigating business risks. The road ahead involves cultivating strong connections between government resources and innovative startups, paving the way for more robust technological advancements and economic development.
Co-founder and CEO of Roadrunner Venture Studios, Adam Hammer, joins host Marshall Kosloff to explain what "deep tech" is, why the Arsenal of Democracy is often fought and won by people in white lab coats, and how the spoils of defense innovation are shared commercially.
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