The Space Force is interested in learning how venture investors evaluate enterprises

The United States Space Force as well as a venture capital firm recently unveiled a pilot project to help government buyers learn how investors evaluate space industry companies. According to Gabe Mounce, who serves as the deputy director in charge of the SpaceWERX, the Space Force would like more information on how venture investors assess the prospects of commercially developed technology.

SpaceWERX is a new entity within the Space Systems Command of the United States Air Force. It’s based on the Air Force’s AFWERX technological incubator, which was established in 2017 to encourage small enterprises and entrepreneurs in the space sector to collaborate with the government.

The first to sign a collaboration agreement with SpaceWERX is Embedded Ventures, which is a new VC company focused on space entrepreneurs. Mounce said the objective is to build a platform for SpaceWERX and venture capital companies to be able to exchange information during a virtual event on October 14.

“For us as a government, it’s about exploring the viewpoints that venture capitalists use when assessing private sector businesses when it comes to the technology maturation, team dynamics, team building, and those kinds of considerations,” he said, “while also enabling these people who ratify these contracts with us to comprehend what may be our necessities are, what we’re exploring in the private sector.”

He stated, “We were able to sort of codifying that in the current deal with Embedded Venture,” which is a pilot project. The Small Business Innovation Research (SBIR) program funds SpaceWERX and AFWERX. Companies submit applications, and contracts for prototypes and studies are awarded.

It can be hard for the government to examine the qualifications of the startups vying for SBIR contracts because the space sector attracts so many new enterprises, according to Mounce. He noted that here is where venture capitalists’ knowledge would be valuable. AFWERX has been cultivating partnerships with venture capital firms for years and regularly invites investors to be able to pitch events where businesses compete for prizes, “but it’s been more casual, sort of on an ad hoc basis,” according to Mounce.

He believes that more agreements with other VCs might be reached. “We intend to keep working on these cooperative arrangements.” Several additional venture capital firms may be interested.” According to Mounce, SpaceWERX is also considering a “consortium model” that would allow more companies to participate. “We’re still working it out; there are no promises at this time.” “It’s something we’re looking into.”

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