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Tune into FedTech's Founder and CEO, Ben Solomon, as he shares six 2026 predictions for deep tech startups navigating dual-use technology markets. Learn what deep tech founders need to be looking out for and how to get ahead government engagement opportunities this year.
1. Government looking for return on investment in new and creative ways
This year, we are seeing the government looking to be on the cap table of the small businesses it contracts with. With that, startups should expect more creative deal structures tied to performance and outcomes.
2. Working with the government will get increasingly simple from an administrative standpoint
The current administration is looking to have less red tape and build faster acquisition paths, similar to commercial deals, to gain access to more mature solutions. Our recommendation for small businesses is not to rely on the government to design the acquisition pathway, rather to become a full partner to put forward deals quicker.
3. Licensing federal IP is about to become easier
Initiatives like the OUSW Patent Holiday Initiative will open a series of dual-use technologies from DoW Research Labs for companies to evaluate and market for a period of time. This is a great opportunity for both startup teams looking to expand their product line and entrepreneurs wanting to start a company around government technology.
4. AI, critical materials, UAS/CUAS, and missile defense will continue to offer large opportunities across government
We’re going into this period of an “AI Government Boom” — in addition to hearing immense conversation around critical materials, and UAS/CUAS in the context of Ukraine. As a first step, small businesses with relevant DoW and national security solutions should engage early through programs like Small Business Innovation Research (SBIR), particularly the Defense Innovation Unit (DIU), once it comes back online.
5. Expect continued focus by DoW on where it spends its research dollars
Instead of boiling the ocean, the DoW will be prioritizing technologies tied to near-term mission impact. Small businesses must clearly map their technology to a specific mission need, actively engaging government stakeholders.
6. Government will continue to launch an unprecedented push for AI talent acquisition
Beyond selling technology, contractors may have the chance to advise the government from a consulting standpoint — creating more value creation opportunities for small businesses.
One action to take in the next 30 days: get in front of government customers.
Be proactive, mission-driven, and clear about how your technology moves outcomes forward. Early engagement now will compound throughout 2026.
