For NatSec100 companies, operational impact is increasingly reflected in government contract data—from traditional FAR-based awards to more flexible tools like Other Transaction (OT) authorities and SBIR/STTR grants. These pathways show how well startups are breaking through bureaucratic hurdles to deliver real-world capabilities.
More NatSec100 firms are now securing meaningful contracts from U.S. government agencies. The Air Force and U.S. Special Operations Command stand out as frequent adopters of emerging tech, particularly in AI, autonomy, and dual-use software. Their willingness to use agile contracting approaches makes them key entry points for nontraditional vendors.
One major trend is the rise of OT authority use, which helps the government partner with innovative companies outside the traditional defense base. Many NatSec100 firms, especially in autonomy, cyber, and edge computing, are using OT-based agreements or Commercial Solutions Offerings (CSOs) to gain traction. This reflects a broader shift in acquisition strategy, as agencies acknowledge that legacy processes are too slow to keep up with innovation.
70
Companies with Prime USG contracts
43
Companies that have used an OTA
50
Companies that have received an SBIR grant
While the VC ecosystem and Pentagon are in a new renaissance period, there is simply a mismatch with regard to how China utilizes their 2500+ state backed funds. If we want to compete with China for private sector capital investment into the military, the only metric of success is in the tech being operationally used in the fight, not money raised.
Brian MacCarthy
Managing Partner, Booz Allen Ventures
The 2025 NatSec100 cohort shows progress—more contracts, better access to receptive agencies, and increased use of flexible authorities.
Still, challenges remain. Although designed for early-stage R&D, SBIR/STTR programs are not consistently embraced by leading non-traditional companies. These awards are often seen as too small, slow, or disconnected from a PoR finish line to be worth the effort. Only 50% of the 2025 NatSec100 companies have received an SBIR/STTR grant. A concerted effort to reduce “SBIR Mill” companies will also prove helpful to improving today’s SBIR/STTR program.
In the end, government adoption still lags behind the pace of private capital.
Takeaway
To truly scale emerging tech across the mission, the Pentagon must reduce barriers, spread investment more broadly, and institutionalize faster pathways from prototype to program of record.