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How national interest startups should be thinking about government contracts

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How national interest startups should be thinking about government contracts

National interest technology can show up in a lot of ways, like in data analysis and cybersecurity, as well as satellites and weapons. Many startups with dual-use applications are increasingly looking at the government as an attractive customer due to its wide range of use cases and the amount of federal dollars available. 

And while there are several grant programs (like those offered via the Inflation Reduction Act) that provide nondilutive funding for startups, Rebecca Gevalt, managing partner at Dcode Capital who used to work at the CIA, says she advises companies to go after contracts instead. 

“The real key is, how do you figure out a repeatable way to get government revenue so that it can be a core part of your business?” Gevalt said onstage this week at TechCrunch Disrupt 2024.

Gevalt spoke alongside Topher Haddad, founder and CEO of satellite imagery startup Albedo, and Kai Kloepfer, founder and CEO of biometric weapons startup Biofire, about the boom in national interest startups and how startups can go about getting a foot in the government door.

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The DOD is “flush with money”

The goal for startups working with the government should be to get repeatable revenue, not just grant money or other nondilutive funding. One easy target for startups with a national interest use case? The Department of Defense (DOD), which Gevalt says is “flush with money.” 

The DOD’s budget request for 2025 was close to $850 billion, with $143.2 billion for research, development, testing, and evaluation and then another $167.5 billion set aside for procurement. The agency is actively looking to work with startups developing AI, autonomous systems, quantum computing, and space technologies. 

There are a number of entry points for startups, such as the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through DARPA. And while startups can get a foot in the door through those programs, Gevalt recommends that startups have a partner to guide them from concept and prototyping phases through to commercial contracts. 

“There are strategies to go from that first in the door, R&D dollars for development into more programmatic revenue, and that’s where our advisory firm helps companies, but there’s a number of them in DC that help companies do that,” she said.

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And Gevalt has a point. A 2023 Defense Innovation Board report found that only 16% of DOD SBIR-funded companies made it to commercialization contracts over the last 10 years. 

But it’s not all defense

“I think a lot of times people can fall into the trap of thinking, if I want to sell to the government, then it has to be related to defense tech, and I have to be involved in drones, missiles, things like that. And that’s fundamentally not the case,” Gevalt said.

She says Dcode is heavily focused on investing in startups that handle and analyze data, as well as ones that offer cybersecurity solutions. 

“By law, the government cannot delete any of its data, so it’s going to be a continually growing problem for them to manage it and to drive insights out of it,” Gevalt said. “And then, from a cybersecurity perspective, they get hacked rather frequently, so trying to get them access to the best tools.”

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Put your blinders up to politics

Topher Haddad, Albedo, TechCrunch Disrupt 2024. Image Credits:TechCrunch

In the lead-up to the U.S. election, should startups be coming up with contingency plans for different presidential candidates? Gevalt and Albedo’s Haddad say that’s not exactly necessary.

“Across administrations, you are going to have people interested in data, tools, cybersecurity, the latest in AI,” Gevalt said. “Where the dollars flow change, how big the government will be could change. But I fundamentally believe whether or not the government grows or gets smaller, there’s going to be a requirement for them to upgrade their systems from the year 2000.”

Haddad noted that Albedo is in “wait-and-see” mode, as it’s expecting some effects. But not enough to have a Plan A and Plan B for different candidates.

“Generally, space is a big priority, and I don’t think that will change,” Haddad said. “Maybe it will change a bit of the business development in terms of how we focus on different agencies or departments.”

Gevalt said that the best way to remain unaffected by changing administrations is to seek out relationships with nonpolitical appointments. 

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“As you’re developing your federal go-to-market motion, you don’t typically want to talk to the politicals,” she said. “You want to talk to the people who are doing the jobs day in, day out, regardless of who’s in the administration, because those are the people who are going to buy your products.”

Made in the USA

Kai Kloepfer, CEO of Biofire, at TechCrunch Disrupt 2024.Image Credits:TechCrunch

Gevalt said that for government, contracting with startups that are based in and producing products in the U.S. is preferred — but more so for software than hardware. 

“If there are certain people on your team doing certain work from certain countries, then it makes it very hard to do sales into the government, at least into the DOD and into some intelligence community agencies,” she said.

Both Albedo and Biofire are based in the U.S., with manufacturing facilities in Colorado. Kloepfer noted that building in the U.S. was important for Biofire because of the nature of its business. 

“We are quite strongly regulated by the Department of Commerce with respect to export controls. … [T]he U.S. is excited about keeping its weapons technology inside the U.S.,” he said, noting that Biofire would likely need special approval to contract foreign manufacturers.

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He added that investors also like to see onshored manufacturing because it helps with quality control and scaling.

“For the early stage that we’re at, it’s how fast can we iterate? How fast can we improve?” Kloepfer said. “And doing that at our current headquarters facility … is orders of magnitude easier than iterating with some sort of overseas vendor, if that’s even possible.”

Finding product-market fit in government

Rebecca Bellan, TechCrunch (Left) and Rebecca Gevalt, DCode Capital (Right) onstage at TechCrunch Disrupt 2024 to discuss the boom in national interest startups.Image Credits:TechCrunch

Gevalt says that her firm often sees early-stage companies hire a salesperson or lobbyist out the gate when trying to secure contracts with the federal government. She advises instead that startups first figure out which agencies have a need for their technology using available data from sites like Bloomberg Government (BGov), GovTribe, and GovWin IQ

“When the government says they want to go buy something, they have to put it out publicly, unless it’s a classified thing,” she said. “So … you can sift through that data. And if you know whoever your competitor is, and you know they’re selling to the government, you can … see what contracts have they won? In what offices have they won them? Are they working with partners like Deloitte or Booz Allen?”

That’s also true for AI startups looking to work with government.

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The key mindset is to be strategic and tactical, Gevalt says, noting that startups should look at the government’s overarching strategy documents regarding AI and then tactically seek out offices that are actively leveraging AI technologies. 

“You have a lot of people who’ve been in the government for a very long time, and so they know conceptually what AI is, but a lot of the data architecture that they have won’t actually facilitate the use of an AI product on whatever datasets they’re working on anyway,” Gevalt said. “So … strategically, you can see the Biden administration right now wants to leverage AI in this way. But tactically, how are the agencies actually doing it? … How are they buying it? Are they buying it through a partner?”

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Too good to be true? Job scams on the rise as finance, IT, and healthcare sectors become prime targets

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A white woman with long brown hair in a ponytail looks down at her computer in a distressed manner. She is holding her forehead with one hand and a credit card with the other

A new report from Heimdal has revealed jobseekers across the world are being targeted by scams exploiting individuals looking for work in sectors such as finance, IT, and healthcare.

Based on an analysis of over 2,670 social media posts and comments from victims in 2023 and 2024, the report highlights the common tactics used by scammers, the industries most affected, and the emotional toll these scams take on their victims.

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One more year of the iMac Pro being missing in action

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One more year of the iMac Pro being missing in action

This week, Apple announced a new M4 iMac. It got some upgrades that help make it more appealing to creatives and pros, such as the more powerful M4 chip, Thunderbolt 4, upgraded camera, and nano-texture display.

But an iMac Pro, this is not.

A more larger and more powerful iMac has been missing in the lineup since before the transition to Apple Silicon. Despite Apple’s insistence that it completed the transition to Apple Silicon in 2022, a 27-inch iMac is still missing. Is there any hope?

Has it been replaced?

Apple Mac Studio top down view showing PC and keyboard.
Mark Coppock / Digital Trends

Yet conspicuous by its absence was any kind of larger iMac equipped with an M4 chip. Close to four years after the iMac Pro was discontinued, we’re still left wondering what — if anything — Apple plans for its plus-sized all-in-one computer.

And because of that, I can’t help feeling that there’s a noticeable gap in Apple’s desktop Mac lineup, whether we’re talking about a beefy iMac Pro or simply a larger iMac with the same colorful design as Apple’s base model. But will Apple actually do anything about this situation?

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For its part, Apple has said that it thinks the combination of the Mac Studio and the Studio Display is a great combination for professional users. And on that point, it might be right: together, the Mac Studio and Studio Display start at $3,598, which is much cheaper than the iMac Pro’s old starting price of $4,999. Sure, the outcome is not quite as sleek, but it does a great job for almost $1,500 less. Who can argue with that?

In that regard, I’m inclined to agree that a true iMac Pro probably doesn’t need to be brought back, and that Apple was right to keep it out of the recent Mac announcements. It feels like more of a “nice to have” than an absolute essential, and I doubt that’s enough justification for Apple.

But what about the larger desktop iMac with an M4 Pro? Apple used to sell the iMac in both 21.5-inch and 27-inch sizes, yet now your only choice is the 24-inch iMac. For people who want a larger all-in-one computer without needing the beefier components (or hefty price tag) of the Mac Studio and Studio Display, there are few options from Apple.

Missing in action

Apple's John Ternus discusses the iMac at the Worldwide Developers Conference (WWDC) in 2017.
Apple

Over the past few months, the idea that Apple was planning to release a bigger iMac in the fall simply hasn’t been on the agenda. In fact, there have been precious few rumors surrounding this mooted device at all in the last year or so. To me, that implies either that a larger iMac is a long way off, or that it’s not happening at all.

Even the upgrades seen by the actually existing iMac are minor at the moment. Sure, this year we’ve had a few new colors, a Thunderbolt 4 upgrade and, yes, the M4 chip, but it’s not exactly a radical overhaul of the iMac. Does this computer simply not sell well enough for Apple to devote significant resources to it? If so, that could explain why we’re not seeing a larger model — perhaps Apple just doesn’t think an upgrade like that is worth anyone’s time.

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If so, that’s a sad state of affairs for such an iconic computer, but such is the world of technology. Things move on at such a rapid pace that it’s inevitable that some once-popular devices will get left behind.

The other possibility is that Apple is merely biding its time until it feels the larger iMac is ready before releasing it. The iMac doesn’t sell in huge numbers like iPhones and MacBooks, so it’s less important for Apple to get new updates out of the door every single year. We’ve already heard that Apple is still “exploring” the idea of a larger iMac, with Bloomberg journalist Mark Gurman previously stating that Apple is still working on the product. When the timeframes are longer, Apple can afford to move at a slower pace.

I can’t tell you for sure whether Apple is ever going to bring back an iMac with a bigger screen, or what form that will take if it does happen. But what is certain is that we’ve got at least another year ahead of us before we see the next iMac upgrade. Let’s hope that one comes with some better news for fans of larger displays.


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Apple urged TikTok to revise age recommendations, reveal leaked lawsuit pages

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Texas is suing TikTok, claiming it violated a new child privacy law

Apple had strongly urged TikTok to revise age recommendations on the app, leaked pages of an ongoing lawsuit have revealed. Apple was aware and cautious of mature content and expletives-laden language on TikTok.

TikTok employees and states have raised concerns about mature content

TikTok has been increasingly facing heat from several states in the US. Most of the lawsuits have made similar allegations. So far, 14 States have claimed TikTok damages young users’ mental health.

It is concerning to note that some of TikTok’s employees too found issues with the actions of the company. In other words, TikTok may have dragged its feet while trying to reduce content like profanity and eating disorders.

One of the most glaring examples was about pop-up alerts. Profanity was reportedly found in one out of every 50 pop-up alerts shown to minors in the US and UK in a month.

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If that’s not concerning enough, TikTok may have known its “time limit” tool wasn’t strictly enforceable. In other words, minors could easily circumvent the basic tech, thereby increasing exposure to potentially harmful content.

Leaked lawsuit documents reveal Apple wanted TikTok to revise age recommendations

It appears Apple was well aware of the methods, or lack thereof, that TikTok adopted. Specifically speaking, TikTok and other popular social media platforms like Instagram, YouTube, and Snapchat have an age rating of 12 and over.

Digital platforms like Reddit, Discord, and X are best suited for users 17 and up, suggests the Apple App Store. The same age recommendation or restriction should apply to TikTok as well, leaked court documents have revealed.

According to the Washington Post, back in 2022, Apple had urged TikTok to revise the minimum age recommendation. A team that reviews ratings, found that the app features “frequent or intense mature or suggestive content”. Apple subsequently asked TikTok to raise its recommended age to 17 and over.

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“We hope you will consider making the necessary changes to follow the App Store Review Guidelines and will resubmit [your rating]”.

Apple’s comments were accidentally made public in South Carolina’s complaint against TikTok. These comments should have been redacted. As expected, TikTok isn’t happy about the revelation. TikTok spokesperson Alex Haurek reportedly claimed, “Many of these issues have already been addressed”. He further stated the company “has always enforced strict policies against nudity, sexually explicit content, and solicitation.”

While TikTok could have raised the minimum age recommendation, this wasn’t in its best interest. After all, social media platforms want to attract and retain as many people as possible. This helps them to serve more ads to a wider demographic. Perhaps Apple should have retained the right to impose age restrictions to help vulnerable and impressionable kids and teens.

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Okta vulnerability allowed accounts with long usernames to log in without a password

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Okta vulnerability allowed accounts with long usernames to log in without a password

In a new security advisory, Okta has revealed that its system had a vulnerability that allowed people to log into an account without having to provide the correct password. Okta bypassed password authentication if the account had a username that had 52 or more characters. Further, its system had to detect a “stored cache key” of a previous successful authentication, which means the account’s owner had to have previous history of logging in using that browser. It also didn’t affect organizations that require multi-factor authentication, according to the notice the company sent to its users.

Still, a 52-character username is easier to guess than a random password — it could be as simple as a person’s email address that has their full name along with their organization’s website domain. The company has admitted that the vulnerability was introduced as part of a standard update that went out on July 23, 2024 and that it only discovered (and fixed) the issue on October 30. It’s now advising customers who meet all of the vulnerability’s conditions to check their access log over the past few months.

Okta provides software that makes it easy for companies to add authentication services to their application. For organizations with multiple apps, it gives users access to a single, unified log-in so they don’t have to verify their identities for each application. The company didn’t say whether it’s aware of anybody who’s been affected by this specific issue, but it promised to “communicate more rapidly with customers” in the past after the threat group Lapsus$ accessed a couple of users’ accounts.

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Pudgy Penguins and Mythical Games unveil Pudgy Party Web3 mobile game

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Pudgy Penguins and Mythical Games unveil Pudgy Party Web3 mobile game

Pudgy Penguins and Mythical Games unveiled Pudgy Party, a Web3 mobile gaming coming next year.

The aim for the title on iOS and Android is to become the No. 1 party game for fans of the adorable penguin franchise. The game reimagines traditional knockout royale gameplay by prioritizing collaboration and camaraderie, allowing players to team up and share rewards in a vibrant, cozy setting.

Pudgy Penguins is a digital collectible intellectual property that is crossing over into the mainstream, the companies said. Its adorable penguin characters are featured on toys and merchandise sold at major retailers across the globe, showcasing its impressive real-world presence rising from its virtual origins.

“We are thrilled to bring Pudgy Penguins into the world of mobile gaming with Pudgy Party. Our mission is to create an inclusive and joyful experience where players can connect and celebrate together, and this title announcement is just the beginning,” said Luca Netz, CEO of Pudgy Penguins, in a statement.

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Mythical Games recently had a Web3/Web2 hybrid gaming hit with NFL Rivals, which has had more than five million players. The Mythos Chain (MYTH) has more than a million active wallets, said John Linden, CEO of Mythical Games, in a recent interview with GamesBeat.

Pudgy Party will be designed for players of all ages, emphasizing pick-up-and-play mechanics, simple controls, and accessible fun. The game offers a gradual progression from beginner to pro.

Players will be able to team up with others and progress through multiple action-packed rounds by dodging obstacles, finding optimal collection strategies, and outsmarting and outlasting your opponents to finish at the top of the pack. Emerging moments keep the gameplay lively.

You can team up with friends or family, either to compete for bragging rights or collaborate and progress together. You will be able to watch and rewatch others’ play. And you can personalize your penguin with various costumes from your wardrobe, adding to the fun, sense of ownership, and individuality.

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CoffeeSpace is a Hinge-like app that wants to help you find your co-founder

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CoffeeSpace is a Hinge-like app that wants to help you find your co-founder

CoffeeSpace is on a mission to help people find partners for their startup ideas online. The startup, which exhibited as part of the Startup Battlefield 200 at TechCrunch Disrupt 2024, has launched a social networking app that matches people exploring startup ideas and looking for co-founders. 

The startup’s algorithm only matches candidates who meet each other’s requirements. You can filter through potential candidates based on several different filters, including expertise, location, industry, and more. 

CoffeeSpace CEO Hazim Mohamad told TechCrunch he believes that when you look for a co-founder for your business idea, you want to go beyond a traditional résumé, which is why the app gives users a peek into others’ personalities and working styles in order to help people get an idea of whether a match would be an ideal candidate.

“We’re helping people realize their dreams of exploring their startup ideas,” Mohamed said. “We believe CoffeeSpace will change the nature of how people can find business partners, just like what Tinder did for online dating 10 years ago.”

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Image Credits:CoffeeSpace

The social network launched in March and currently has more than 7,000 users. Since its launch, CoffeeSpace has seen over 270,000 swipes on the app. 

In terms of the app’s UI, the startup has taken inspiration from Hinge. When you sign up for the platform, your CoffeeSpace profile will include a mix of public and private data. The public data comes from your LinkedIn profile, while you enter the private data yourself. 

The private data includes information about your location and what sort of co-founder you’re looking for. For example, you can note that you’re looking for someone with a product design background. 

The platform operates on a freemium model, as users can access the app and get 10 matches for free. If you want to unlock more matches, you can subscribe to the service’s premium offering, which costs $50 per month. The premium subscription also unlocks additional filters that you can use to narrow down your search even further. 

CoffeeSpace is available on iOS and Android.

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