So, I worked in SBIR space for 8 years. SBIR is a government prrogram designed to fund small businesses to do tech research.
DOD does buy tech from startups in 2017 though, times are changing. DIUx solicited small biz cybersecurity products last week!
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Another: Army Innovation Challenge. A friend built his company on them, only gave up GPR IP, then sold commercially to Capital One.
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Success happens in reverse too. There's a crypto messenger that only discovered their applications in gov and found gov clients *via* SBIR.
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