{"id":48576,"date":"2026-07-21T13:41:59","date_gmt":"2026-07-21T13:41:59","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2026\/07\/21\/how-startups-are-reshaping-the-pentagons-drone-industry\/"},"modified":"2026-08-08T17:23:47","modified_gmt":"2026-08-08T17:23:47","slug":"how-startups-are-reshaping-the-pentagons-drone-industry","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/unmanned\/2026\/07\/21\/how-startups-are-reshaping-the-pentagons-drone-industry\/","title":{"rendered":"How startups are reshaping the Pentagon\u2019s drone industry"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Last month, the Defense Department wrapped up another round of the <a href=\"https:\/\/www.militarytimes.com\/air\/2026\/02\/03\/pentagon-taps-25-firms-for-small-cheap-attack-drone-competition\/\" target=\"_blank\" rel=\"\">Drone Dominance<\/a> competition, a $1.1 billion program aimed at strengthening the domestic drone industry to supply commercially developed drones to the military.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During the <a href=\"https:\/\/drone-dominance.io\/announcements.html?post=gauntlet-ii-advancing-companies\" target=\"_blank\" rel=\"\">12-day event<\/a> at Camp Grayling, Michigan, 49 companies competed across multiple mission sets. Officials evaluated their small unmanned aircraft systems on performance, ease of use and each company\u2019s ability to produce at scale. By the end, 19 companies advanced to the next round of testing, scheduled to begin in August.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The list of finalists offers a snapshot of the rapidly evolving defense drone industry. Nearly all are privately held companies focused on small UASs rather than traditional weapons. About half already have systems on the Defense Department\u2019s <a href=\"https:\/\/www.militarytimes.com\/news\/pentagon-congress\/2026\/02\/20\/how-commercial-drones-make-the-pentagons-blue-uas-select-list\/\" target=\"_blank\" rel=\"\">Blue UAS Cleared or Blue UAS Select lists<\/a>, making them easier for military units to purchase. Most are also relatively young: seven were founded within the past 13 years and eight within the past four.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To better understand why the field looks the way it does, Military Times spoke with J.R. Mullis, a retired Air Force contracting officer who founded the defense technology consultancy <a href=\"https:\/\/ellimacpartners.com\/\" target=\"_blank\" rel=\"\">ellimaC Partners<\/a> and <a href=\"https:\/\/www.watchtowerus.org\/\" target=\"_blank\" rel=\"\">Watchtower<\/a>, a nonprofit that connects emerging defense technology companies with military organizations and hosts its own <a href=\"https:\/\/www.linkedin.com\/feed\/update\/urn:li:activity:7476278350769078272\/\" target=\"_blank\" rel=\"\">Best Drone Team Competition<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While many of the companies are young, Mullis said they are considerably \u201cmore mature\u201d than the average drone startup. More importantly, they are developing technologies the military can field today. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI mean, they\u2019re able to be deployed right now,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mullis said the finalists share less in common than many observers might assume. Rather than competing to build the same aircraft, many are developing different pieces of the same capability, from airframes and sensors to autonomy software.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf you were to circle all of them and mash them together,\u201d he said, \u201cI think it would make a really good capability.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Still, the dominance of younger companies reflects a broader shift in how the Pentagon acquires technology. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mullis said the government has become more willing to identify operational gaps, giving entrepreneurs with specialized expertise an opportunity to build products that directly address military needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He pointed to one company competing in Drone Dominance, which he declined to identify by name, describing it as \u201cone of the best ones\u201d in the competition. Founded by what he called a \u201cyoung founder\u201d with deep technical expertise, the company grew from zero to millions of dollars in revenue in roughly two years by solving a specific problem.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One example from the list of qualifiers is Massachusetts-based Ascent AeroSystems, founded in 2014 by two brothers and a friend who originally set out to build a rugged drone small enough to fit inside a backpack during hiking and rock climbing trips. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company later adapted its technology for military use and, in 2024, was <a href=\"https:\/\/www.inc.com\/chloe-aiello\/this-drone-companys-acquisition-offers-valuable-lessons-on-when-to-sell-your-business.html\" target=\"_blank\" rel=\"\">acquired<\/a> by California-based Robinson Helicopter, which later <a href=\"https:\/\/www.robinsonheli.com\/unmanned\/press\/robinson-helicopter-company-establishes-robinson-unmanned-business-unit-formalizing-expansion-into-scalable-autonomous-aviation\" target=\"_blank\" rel=\"\">formed<\/a> Robinson Unmanned. Today, Ascent\u2019s <a href=\"https:\/\/www.robinsonheli.com\/unmanned\/uas\/spirit\" target=\"_blank\" rel=\"\">Aero Spirit<\/a> drone appears on the Defense Department\u2019s Blue UAS Cleared list and the company has received more than <a href=\"https:\/\/www.usaspending.gov\/search?hash=9b32601bf7a76a1844639fabbf99be5f\" target=\"_blank\" rel=\"\">$2 million<\/a> in Defense Department contracts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cGoing back years and years, a lot of the defense-tech founders were developing technology based on headlines,\u201d Mullis said. \u201cAs the government is more open about what its capability gaps are, the real experts are able to put their hands up and build solutions for it.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Manufacturing, not innovation, is the biggest hurdle<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Coming up with a good idea is only part of the challenge. According to Mullis, the biggest obstacle facing small defense companies isn\u2019t developing technology, but rather, producing enough of it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A startup may successfully build a prototype, sell a handful of systems and convince the military it has a winning product. But when the government suddenly wants thousands, a small company or startup may lack the manufacturing capacity and capital needed to meet demand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One example of how companies overcome that hurdle is the partnership between Georgia-based <a href=\"https:\/\/kineticframes.us\/\" target=\"_blank\" rel=\"\">Kinetic Frames<\/a> and Alabama-based <a href=\"https:\/\/www.griffonaerospace.com\/\" target=\"_blank\" rel=\"\">Griffon Aerospace<\/a>. Kinetic Frames is a relatively young company with a modest public presence \u2014 a <a href=\"https:\/\/kineticframes.us\/\" target=\"_blank\" rel=\"\">simple website<\/a> and <a href=\"https:\/\/www.instagram.com\/kineticframesfpv\/\" target=\"_blank\" rel=\"\">Instagram page<\/a> \u2014 while Griffon has received more than <a href=\"https:\/\/www.usaspending.gov\/search?hash=1149b9dbbbda89c69f0f42cc37796739\" target=\"_blank\" rel=\"\">$400 million<\/a> in federal contracts since 2009.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Together, the companies have produced and delivered more than 2,000 drones to the Defense Department, illustrating how smaller innovators can pair with established manufacturers to meet the military\u2019s production demands.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cScaling in order to meet the needs of the government is, I would say, one of the valleys of death [for a small company],\u201d Mullis added.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Where defense giants fit in<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">At first glance, Drone Dominance appears to be dominated by startups, but Mullis said that doesn\u2019t mean major defense contractors are ignoring the market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many of the industry\u2019s largest \u201cprime\u201d contractors \u2014 companies that hold the government\u2019s primary contracts \u2014 are already working on similar technologies through existing programs. Because those efforts are often backed by long-term government funding, he said, they don\u2019t need the visibility that comes with participating in a public competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe publicity matters for those small companies,\u201d Mullis said. \u201cIt does not matter at all for those primes.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That doesn\u2019t mean established companies are absent from the competition, though. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among the current finalists are publicly traded companies such as <a href=\"https:\/\/www.kratosdefense.com\/newsroom\/kratos-selected-to-participate-in-phase-1-gauntlet-for-the-office-of-the-secretary-of-wars-drone-dominance-program\" target=\"_blank\" rel=\"\">Kratos Defense &amp; Security Solutions<\/a> and <a href=\"https:\/\/ir.redcatholdings.com\/news-events\/press-releases\/detail\/230\/red-cats-teal-drones-advances-to-gauntlet-ii-of-drone-dominance-program\" target=\"_blank\" rel=\"\">Red Cat Holdings<\/a>, both of which have built businesses around unmanned aircraft. Others represent partnerships between established defense manufacturers and newer drone developers, reflecting the increasingly collaborative nature of the market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mullis said acquisitions are often a natural outcome for successful startups, rewarding founders while helping proven technologies reach larger production scales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s good for the whole ecosystem because the founders are being rewarded for solving a problem,\u201d he said, adding, \u201cAn acquisition is just an absolute success.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Building the next generation of defense companies<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Mullis said he thinks Drone Dominance is doing more than selecting companies for future contracts. He said the competition reflects a broader shift in defense acquisition by \u201cencouraging and almost forcing collaboration.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier this year, the Defense Department announced the <a href=\"https:\/\/www.militarytimes.com\/industry\/techwatch\/2026\/06\/09\/pentagon-reveals-preferred-munitions-for-one-way-attack-drones\/\" target=\"_blank\" rel=\"\">Drone Dominance Lethality Prize<\/a>, which paired drone competitors with approved manufacturers capable of supplying standardized explosive payloads for one-way attack drones.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even companies that fail to win contracts stand to benefit. \u201cThe best founders in the world wear failure like a badge of honor,\u201d he said. \u201cIf you go to Drone Dominance, you get, if nothing else, real feedback on your technology.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In an increasingly crowded drone market, that feedback should be considered valuable. \u201cEven if they\u2019re not selected, they\u2019ll have their marching orders and they\u2019ll know what to do to make it better,\u201d Mullis said. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Experts say the Drone Dominance competition reflects a broader shift in how the Pentagon acquires military technology and cultivates defense startups.<\/p>\n","protected":false},"author":7,"featured_media":111184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":27,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,29,36,19,27],"tags":[],"coauthors":[3473],"class_list":["post-48576","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-digital-show-dailies","category-newsletters","category-pentagon","category-unmanned"],"acf":{"subheadline":"","legacy_arc_id":"G2MLP7DKG5EZZNUPDRXYTZQGKA","arc_canonical_url":"\/news\/your-military\/2026\/07\/21\/how-startups-are-reshaping-the-pentagons-drone-industry\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How startups are reshaping the Pentagon\u2019s drone industry - Defense News<\/title>\n<meta name=\"description\" content=\"Experts say the Drone Dominance competition reflects a broader shift in how the Pentagon acquires military technology and cultivates defense startups.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How startups are reshaping the Pentagon\u2019s drone industry\" \/>\n<meta property=\"og:description\" content=\"Experts say the Drone Dominance competition reflects a broader shift in how the Pentagon acquires military technology and cultivates defense startups.\" \/>\n<meta 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