• Noise is a significant weakness for drones. Credit: Dotterel
    Noise is a significant weakness for drones. Credit: Dotterel
  • Dotterel is one start-up targeting Defence with noise-reduction technology for drones.
Dotterel via Twitter
    Dotterel is one start-up targeting Defence with noise-reduction technology for drones. Dotterel via Twitter
  • Dotterel's drone shroud undergoing testing. Credit: Dotterel
    Dotterel's drone shroud undergoing testing. Credit: Dotterel
  • Shaun Edlin of Dotterel Technologies. Credit: Shaun Edlin/Dotterel
    Shaun Edlin of Dotterel Technologies. Credit: Shaun Edlin/Dotterel
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The pace of technological change is increasing exponentially. As Managing Editor Katherine Ziesing observed in the May edition of ADM, each generation of technology improves over the last and speeds up the rate of progress from version to version.

Staying abreast of technological progress was a security priority highlighted in the 2016 Defence White Paper. Much of that progress is driven by small start-ups seeking to capitalise on the frontier of technology.

The financial and commercial challenges of running a start-up, however, can preclude these companies from competing for business with Defence.

ADM recently spoke with Terry Gold, managing director of start-up accelerator Techstars Adelaide, about how the start-up scene is trying to spread into the Defence space.

“Traditionally, I think Defence went out to the world and said we need this, can you provide it?” Gold said. “But things are moving so fast now in the areas of AI and machine learning, drones, and cyber that in my opinion, they can’t wait for these ideas to mature into large companies.”

Now, according to Gold, start-ups are approaching Defence and saying “we can provide this – do you need it?”

It is difficult, however, to make a technology commercially viable if it is only marketable to the military. Techstars addresses this by identifying start-ups with dual-use capability and nurturing them through the first stages of opening a business.

“Doing a start-up is really hard, especially if you’ve never done one before,” Gold said. “It’s crucial to have that dual-use capability.”

Techstars Adelaide alumni Shaun Edlin, COO of NZ’s Dotterel Technologies, also told ADM about the challenges of building a start-up and bringing new technologies into the Defence space.

Dotterel develops technology to quieten drones and allow airborne audio recording through the use of lightweight acoustic shrouds and low-noise repellents.

Dotterel is one start-up targeting Defence with noise-reduction technology for drones.
Dotterel via Twitter
Dotterel is one start-up targeting Defence with noise-reduction technology for drones. Dotterel via Twitter

According to Edlin, the company got started through local competitions and went from there.

“We came runner-up in an innovation competition,” Edlin said. “That got us into a tradeshow in Las Vegas, the largest screen industry tradeshow in the world. We won the most innovative product award. That gave us the market validation we needed to take this on full-time.”

“We then raised pre-seed capital and were starting to form earliest commercial partnerships,” Edlin said. “And one of the things that was happening was that we had strong outreach from Defence.”

Dotterel clearly needed a Defence-specific strategy, but the limited number of employees made Shaun hesitant about committing weeks of his time to an accelerator.

“It would take a lot of the team away from a strict focus on product development,” Edlin told ADM. “It felt like a distraction.”

“But it didn’t turn out to be a problem – a number of companies in the program were in the same boat. People just got very effective at making sure development was on track, then spending the day focused on Defence strategy and working with industry figures. The value showed itself quickly.

“Techstars really opened doors to people we never would’ve been able to get in front of in Defence.”

The comparatively slow speed of Defence decision-making, however, still poses a challenge – raising the

of whether Defence’s approach to engaging start-ups is sufficiently adapted to the increasingly fast pace of technological change.

 “We’ve got to a stage where we focus more on the commercial opportunities and letting Defence run its course at its own pace,” Edlin said. “Still giving it focus, but knowing you’re playing the long game.”

When asked what advice he’d give to new start-ups looking at targeting the sector, Edlin pointed at the importance of dual-use technology.

“Make sure that your tech has a commercial application. That will create a profile for your company in a meaningful way and early revenue that will smooth your entry into the Defence sector.”

 “The other thing is to have someone with direct interface with Defence. They’ll be your champion for getting in front of the people that matter.”

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