Inside the Dual-Use Playbook: Lessons from the DCALive Venture Capital Panel
Last week’s DCALive’s Capital Dual-Use event was as expected: insightful and well attended. I sat in on a venture capital panel that was refreshingly real. I’ve attended many VC panels over the years, but this one was unique because it was centered on investors in dual-use technologies specifically.
What is Dual-Use? In short, dual-use items are goods, software, and technology that can be used for both civilian and military applications. It’s particularly relevant in this region due to our proximity to the government and also a depth and breadth of deep tech companies.
The panel was moderated by Mark Bass, Partner at Wilson Sonsini. The lineup included:
Steve Smoot — Partner at Lavroc Ventures
Emily McMahan — Partner at AIN Ventures
Nat Puffer — Deep Tech Investor at IQT
Tim Denning — Partner at Ultratech Capital
Across an hour of “off-script” honesty, I noticed some valuable takeaways.
Warm intros still rule — but clarity wins either way.
Most of the panel’s recent standout deals — from a remote urinary-health sensing platform, to tough-environment robotics, to next-gen satellite communications — all came through trusted networks, not cold emails.
But cold outreach isn’t dead. What is dead: vague, one-size-fits-all emails. A targeted note that clearly outlines what you do and why you're reaching out? Much better. And if someone in the investor’s circle vouches for you, that’s gold.
What early-stage VCs are really evaluating.
The group was remarkably aligned on what matters most in a first conversation:
A clearly articulated problem. No jargon fog.
Traction signals: LOIs, pilots, customer conversations — anything that proves the pain is real.
Your financial model as a thinking tool. They know your projections are just that: projections and probably wrong; they just want to see how you reason about runway and milestones.
Founder-market fit. Why you? Why this problem?
Dual-use strategy. Are you starting in commercial first? Government first? Do you understand the reality of the federal sales cycles — or are you guessing?
A favorite quote (paraphrased):
“If you’re building a product for Marines but have never met a Marine, that’s… not great. Know your gaps and show me how you’re solving them. That’s way more compelling than pretending you don’t have any.”
Fundraising takes longer than you think (always).
Yes, there are rare three-week deals, but most rounds take months. Their advice:
Start raising with six months of runway.
Quick term sheets can be red flags if no diligence has happened.
Think beyond this round: valuation only matters if it sets you up for the next one.
SAFEs, notes, and priced rounds have very different timelines — plan accordingly.
Picking the right partner matters more than picking the highest valuation.
I loved this part — especially now, diligence should occur on both sides, you should be evaluating the investors in the same way they are evaluating you — not all money is good money. Especially in dual-use, the wrong investor can slow you down. Tim put it bluntly: partners who don’t understand government markets “can be dangerous.”
Founders should ask investors the following questions:
Where are you in your fund cycle? (If near the end, it’s probably not looking good for you)
How do you support companies after the check clears?
Who can you introduce us to for the next round?
Can I talk to other founders you’ve backed?
At the end of the day, this is a 10-year relationship. You’re basically choosing who you want in the metaphorical foxhole with you.
Final thoughts
Everyone on the panel noted how quickly the region’s startup and dual-use ecosystem is maturing — more founders, more capital, more momentum. This is a really exciting time for not only this region, but for companies that will be able to scale in bigger markets. Thanks to the investors who gave their time!