AFWERX

AFWERX serves as the innovation arm of the United States Air Force, established with the core mission to accelerate the adoption of commercial technologies for military applications and to foster a culture of innovation within the service. Unlike traditional venture capital firms, AFWERX operates as a government program, strategically investing in dual-use technologies that can benefit both the commercial market and national defense. Its unique structure allows it to bridge the gap between agile private sector innovation and the specific needs of the Air Force and Space Force, aiming to deliver capabilities to warfighters at an accelerated pace.

The primary mechanism through which AFWERX provides "first cheques" to startups is the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These programs are structured in phases. A typical initial entry point is a Phase I award, which focuses on feasibility studies and proof-of-concept, often providing around $50,000 for a 90-day period. For companies with more mature technologies, AFWERX also offers Direct-to-Phase II awards, which serve as a significant "first cheque" for prototype development and can range from $750,000 up to $1.5 million or more. This tiered approach allows AFWERX to engage with companies at various stages of technological readiness.

Since its inception, AFWERX has demonstrated substantial impact, channeling significant resources into the innovation ecosystem. By 2023, the program had awarded over $2 billion in contracts to more than 2,000 companies, showcasing its commitment to diversifying the defense industrial base and leveraging cutting-edge solutions from non-traditional defense contractors. These investments span a wide array of critical technology areas, including artificial intelligence, autonomy, advanced manufacturing, and space technologies, all aimed at enhancing the operational capabilities and strategic advantage of the U.S. Air Force.