What is a dual-use venture?

A dual-use venture is a company that develops technology for both commercial customers and government customers, including defense. The term extends "dual-use technology", the export-control category for items with both civilian and military applications, to the companies built around such technology.

Characteristics

Revenue, or a credible path to revenue, from both commercial and government markets.
A core technology adaptable to both. Common domains include autonomy, space systems, communications, advanced manufacturing, energy, and artificial intelligence.
A capital stack that mixes private investment with non-dilutive government funding.
Regulatory exposure that most purely commercial companies do not face, including export-control regimes such as ITAR and the EAR.

Funding pathways

In the United States, non-dilutive pathways include SBIR and STTR awards, Other Transaction agreements, and programs run by the Defense Innovation Unit and service-level innovation organizations. These can fund early development without diluting ownership, while commercial markets provide scale. Allied governments operate parallel mechanisms; the 2026 Dual-Use Horizon Report maps how allied nations are restructuring capital, production, and governance for dual-use innovation.

Challenges

Government procurement timelines run longer than typical venture fund horizons. Security requirements, facility clearances, and export-control compliance add cost and constrain hiring. Serving two customer sets forces explicit product roadmap decisions that single-market companies avoid.

Common questions