Violetta Bonenkamp’s unique approach to entrepreneurship provides a refreshing lens on how startups can capitalize on emerging trends, especially in sectors like defense tech. Drawing from her extensive background in deeptech and gamepreneurship, she identifies strategic opportunities for growth that most founders overlook.
The defense tech market is creating immense opportunities right now, but many startup founders risk missing out on exponential valuation growth by hesitating to lean into this trend. As someone who has spent decades navigating the global innovation ecosystem, I know firsthand how underutilized sectors like defense can transform startups if approached correctly. In today’s volatile economic and geopolitical climate, building versatile businesses with dual-use technologies, serving both civilian and defense markets, is no longer just profitable; it’s essential for staying competitive.
The Defense Market: Why It’s the Next Big Opportunity
Having observed countless overlooked opportunities, I can confidently say the defense sector is ripe for innovation. Once perceived as taboo or morally complex for startups, it is rapidly being reframed as a space for solving massive societal problems, much like advances in AI have done for healthcare and education. Defense tech isn’t only about weapons or warfare; it’s about cybersecurity, space tech, drones, and even green energy solutions that support military infrastructure.
For example, Iceye is an excellent case study of success in dual-use spacetech. This Finnish startup shifted its focus toward defense, leveraging its satellite capabilities for military and civilian applications. Founders who fail to embrace this dual-use strategy risk leaving millions, or billions, on the table.
Key Stats You Should Know
- CB Insights reported that the cumulative valuation of unicorn startups in defense tech soared to $4 trillion in 2024.
- Approximately 30% of European startup funding in 2025 went to technologies with defense applications, signaling a clear investor appetite for the market.
- Defense tech startups focusing on dual-use offerings can achieve valuation multiples up to 10x higher than those that solely serve civilian markets, as noted by Iceye cofounder Pekka Laurila.
A How-To Guide: Successfully Entering the Defense Sector
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Know the Basics of Dual-Use Technology
Create solutions that can serve both military and civilian needs. This adaptability not only opens the door to substantial government contracts but also assures private sector viability. For instance, autonomous drones that deliver medical supplies in emergencies can also serve defense purposes. -
Leverage Emerging Technologies
Incorporate advancements like blockchain for secure military data transfers, or AI for predictive intelligence in logistics. Businesses like Palantir Technologies are thriving in defense tech because their AI-powered analytics systems span both national security and commercial customers. -
Prioritize Collaboration with Public Institutions
Many startups shy away from bureaucracy, but governments represent some of the most reliable clients, especially in defense. Filing for contracts or grants with organizations like NATO’s Innovation Fund or aligning with national defense budgets ensures your innovation receives funding and validation. -
Find Your Niche
Defense systems are vast. Focus on areas like cybersecurity, environmental monitoring, or AI-powered logistics, that way, even services like maritime tracking can have significant military applications. Companies like Quantum Systems exemplify this by making drones tailored for both defense settings and civilian use. -
Target Easy Entrance Points
If the direct defense market feels overwhelming, consider government-adjacent markets like disaster relief, where technologies like satellite imagery or security software are highly valued. Once your foot is in the door, transitioning to core defense markets becomes easier.
Common Mistakes That Entrepreneurs Make
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Fear of Ethical Dilemmas
Unlike popular belief, defense tech isn’t solely about creating war tools. Many solutions, like clean energy systems for military bases or enhanced communication technologies, actually save lives. Misunderstanding the sector’s scope prevents many startups from exploring this rapidly growing market. -
Ignoring Public-Sector Funding
Many deeptech founders tend to over-focus on VCs and angel investors, ignoring the abundance of government grants available to defense-related R&D. Countries across Europe and the U.S. have allocated record budgets to fund tech startups contributing to national security innovation. -
Failing to Blitzscale
As highlighted by Laurila, most successful defense startups grow by blitzscaling, which requires aggressive investment in rapid scaling strategies. Traditional bootstrapping or conservative growth won’t land big government contracts. -
Underestimating Bureaucracy
Defense markets operate differently from the private commercial sector. Not understanding procurement processes, compliance, or partnerships with government agencies can derail even the most innovative products.
The Gamepreneur Perspective: What Makes Defense Tech Exciting
One aspect rarely discussed is how much the defense field resonates with gamified approaches to problem-solving. In my F/MS Startup Game, we teach entrepreneurs to view challenging markets as an opportunity to navigate complex systems strategically. Defense tech offers the same thrill: you’re building solutions for high-stakes scenarios, often working with cutting-edge, unmet needs.
Closing Thoughts: It’s Time to Take the Leap
Defense tech is no longer just for large corporations or primes, in fact, startups are pioneering some of the most innovative solutions. While this market comes with unique challenges, it also presents unparalleled opportunities for long-term growth and transformative impact.
If we’ve learned anything from startups like Iceye or Helsing, it’s that engaging with the defense market early can catapult valuations exponentially. As a founder, you have the ability to solve sophisticated problems while riding one of the most important investment waves of this generation. The decision is simple: adapt, innovate, and move quickly, or risk being replaced in an era that values agility over everything else.
FAQ
1. What makes the defense tech sector a lucrative opportunity for startups?
The defense tech sector offers startups immense growth potential, especially with dual-use technologies that cater to both civilian and military needs. Startups focusing on defense often achieve valuation multiples up to 10x higher compared to civilian-only businesses. Learn more about Iceye
2. What is dual-use technology, and why is it important for startups?
Dual-use technology refers to solutions that serve both military and civilian markets. This adaptability opens doors to substantial government contracts while ensuring private sector viability, as demonstrated by Iceye’s satellites. Discover Iceye's strategy
3. How can startups overcome ethical dilemmas in defense tech?
Startups can focus on solutions that save lives and address pressing societal issues, such as clean energy systems for military bases or enhanced communication technologies for emergencies. This reframe positions defense tech as a force for good.
4. How do startups secure government funding for defense-related projects?
To access public-sector funding, startups should file for contracts or grants through organizations like NATO’s Innovation Fund or align with national defense budgets. Governments represent some of the most reliable clients. Explore NATO's Innovation Fund
5. Why is collaboration with public institutions important in defense markets?
Government partnerships not only provide funding but also validate the technology. Collaborating with institutions like defense ministries ensures startups have a pathway to large-scale, reliable contracts. Learn more about public-private strategies
6. Which startups are thriving in the defense tech space?
Startups like Iceye and Palantir Technologies are notable players. Iceye uses satellite tech for military and civilian applications, while Palantir provides AI-powered analytics for national security and commercial sectors. Discover Palantir Technologies
7. Why is blitzscaling important in the defense tech industry?
Blitzscaling involves aggressive investment in rapid growth strategies. Defense businesses that scale quickly are more likely to secure significant contracts and market dominance. Read about blitzscaling dynamics
8. How does the defense market impact startup valuations?
Defense tech startups focusing on dual-use solutions often achieve significantly higher valuations. For example, cumulative valuations of defense unicorns surged to $4 trillion in 2024. Explore valuation insights
9. How should startups find their niche in the defense market?
Focus on areas of growing demand, such as cybersecurity, drones, space tech, or AI-powered logistics. By targeting a specific need, startups can effectively serve both civilian and military markets. Check out Iceye's niche innovations
10. What common mistakes do entrepreneurs make in the defense tech sector?
Avoid neglecting public-sector funding, underestimating bureaucracy, or growing too conservatively. These factors can hinder a startup’s ability to blitzscale and win government contracts. Learn more about these challenges
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.