EP 67 — Vatn’s Nelson Mills on the Three Pillars Every Defense Startup Must Master

The underwater domain has become central to great power competition, yet existing autonomous underwater vehicles cost $500,000+ and require teams of specialists to operate single units. Nelson Mills, CEO & Founder of Vatn Systems, and his team have flipped this equation, building vehicles that travel 30+ knots underwater while enabling one operator to deploy hundreds of units with minimal training. 

Nelson's experience as an investor proved invaluable not just for fundraising connections, but for understanding what investors seek in defense companies and how to structure deals effectively. His focus on user experience draws from consumer technology principles, recognizing that ease of use and intuitive operation create force multiplication effects that traditional defense contractors often overlook. 

Topics discussed:

• The three-pillar defense sales framework encompassing operator advocacy, program office relationships, and congressional support.
• Patent-pending modularity architecture that enables mass production of 2,000+ units annually while supporting diverse payload configurations.
• Strategic focus decisions between dual-use applications versus concentrated government market penetration, including resource allocation considerations.
• In-house navigation system development to overcome cost constraints of existing high-end solutions while maintaining tactical utility and performance standards.
• User experience design principles applied to defense technology, emphasizing intuitive operation and minimal training requirements for force multiplication effects.
• Manufacturing digitization through Palantir partnership to identify bottlenecks, supply chain issues, and optimization opportunities in real-time production environments.
• Congressional engagement strategies including lobbyist utilization, NDAA language development, and appropriations advocacy as essential components of defense market access.
• Valley of death navigation through transitional funding programs while layering products at different technology readiness levels.
• Autonomous decision-making capabilities including obstacle avoidance, target recognition through sonar, and mission adaptation without constant human oversight.
• Commercial applications in offshore wind, cable monitoring, and energy sector operations as adjacent markets requiring minimal engineering modifications to core vehicle platforms.

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