Aurelius Systems is tackling one of defense's most critical challenges: cost-effective counter-drone warfare. The company builds lightweight, edge-deployed laser weapon systems with 10-million-x marginal cost advantages over traditional interceptors—shooting down drones for approximately 10 cents versus $2 million per Sea Sparrow missile. With systems priced in hundreds of thousands rather than tens of millions of dollars, Aurelius is proving that commercial manufacturing principles can revolutionize defense technology. In this episode of BUILDERS, I sat down with Michael LaFramboise, CEO and Co-Founder of Aurelius Systems, to unpack how his background spanning automotive manufacturing at Chrysler, R&D at Coherent (the largest U.S. laser manufacturer), and defense sales positioned him to build what he calls "the F150 of directed energy systems."

Topics Discussed:

Why Michael's unusual combination of heavy industrial manufacturing, high-power laser R&D, and directed energy sales made him one of "probably like five people under 70 in the country" positioned to build this company
Aurelius's contrarian R&D thesis: build everything from commercial off-the-shelf components first, only upgrading to bespoke when field tests fail
The tactical fundraising progression: first prototype to pre-seed, DIU grant in February 2025, Singapore Defense Force joint challenge, Army X-Tech competition wins
Government relations as infrastructure: why Aurelius retained a lobbyist six months post-pre-seed and how Congressional support addresses 1-3 year sales cycles
Navigating the DOD acquisitions reorg: 100+ technology acceleration organizations consolidating to 10-20 under new PAE structure, with goals of 90-day turnarounds replacing multi-year cycles
The demonstration strategy that changed everything: earning signed memorandums from high-ranking officers after shooting down drones in Hawaii and Austin under adversarial conditions (heavy rain, 99% humidity, heat warping, night operations)
Founder-led marketing ROI: why acquisitions officers, funders, and engineering talent all follow different channels (LinkedIn vs. X) and require different voices
The three-stakeholder sales complexity: when your end user (warfighter), purchaser (acquisitions), and budget authorizer (Congress) are separate entities who don't communicate

GTM Lessons For B2B Founders:

Follow proven playbooks in specialized markets, then execute obsessively: Michael explicitly followed Anduril's early-stage defense playbook, particularly around government relations: "I think it's like following the Anduril playbook for how you do an early stage defense company is probably a very appropriate thing to do." In highly specialized B2B markets (defense, healthcare, financial services), pattern-match to companies that have successfully navigated regulatory and procurement complexity rather than inventing process from scratch. The differentiation comes from execution and technology, not from reinventing go-to-market structure.
Treat specialized expertise as infrastructure, not overhead: Aurelius hired a lobbyist six months after their pre-seed—before significant revenue—because defense sales involve three disconnected stakeholders. Michael explained: "your purchaser, your end user, and your authorizer for funds are all separate people that don't know each other... whenever you have these different points, it doesn't expand linearly the difficulty or the complexity of the sales cycle. It expands exponentially." B2B founders should map stakeholder complexity early and staff accordingly. If your buyer doesn't control budget, your user doesn't make purchase decisions, or your champion needs internal air cover, these aren't edge cases—they're your sales model.
Demonstration beats documentation when overcoming category skepticism: After decades of directed energy failures, Aurelius spent 2024 conducting nationwide field demonstrations, culminating in adversarial drone shoot-downs in heavy rain, 99% humidity, and night conditions. Michael noted they needed to "clean up the mess that a lot of these other companies have created" with signed memorandums from high-ranking officers. When your category has a failure history, customer education isn't about better pitch decks—it's about systematic proof that eliminates objections through witnessed performance. Plan for demonstration costs and timeline in your first-year budget.
Build your R&D thesis around manufacturing reality, not engineering perfection: Aurelius's core principle: build everything from commercial off-the-shelf components, upgrading only when field tests fail. Michael's insight from automotive and laser manufacturing: "you can get 80-90% physics perfection on a system for 2% of the cost" versus traditional directed energy's approach of "400 ARL and AFRL PhDs all coming together to make the most super bespoke, hyper perfect thing ever." They use material processing lasers (identical output at 1/10th the cost of directed energy lasers) and commercial components from automotive supply chains. B2B founders should define their "good enough" threshold explicitly and build cost structure around it—perfection is often the enemy of scalability and margin.
Attack market dislocations where wrong-fit solutions reveal unmet needs: Aurelius doesn't compete with Sea Sparrow missiles for shooting down aircraft at 9 miles—they target the dislocation where $2M missiles designed for large ordinance are being misused against $500 drones with 30% effectiveness. Michael identified that "there isn't anything in the market that's been developed for counter drone at any significant distance." The opportunity isn't better missiles; it's purpose-built solutions for Group 1 and Group 2 drones (FPV quadcopters and small planes) where no appropriate system exists. Map where customers are forced to use expensive, inappropriate solutions—that's where new categories emerge.

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