5 Takeaways for Startups from SpaceWERX Director Arthur Grijalva

How Space Startups can Start Working with the Government

Guest: SpaceWERX Director Arthur Grijalva

Host(s): AJ Smith, Donavan Moss

This is the first episode of Outlander Overmatch, our new series built to give founders fast, actionable insight straight from real DoD buyers, innovators, and operators. In this conversation, we sat down with Arthur Grijalva, Director of SpaceWERX, to talk about how space startups can successfully work with the U.S. government.

If you have not heard of SpaceWERX, they are the innovation arm of the U.S. Space Force. Each year, they invest over $460M in startups tackling the most urgent challenges in space. Their mission is to bring game-changing commercial capabilities into national security. If you are building for space and want your technology to move from prototype to government procurement, understanding how SpaceWERX operates is a critical first step.

Watch the full interview below and read on for five takeaways from our conversation with Arthur.

1. They invest early, but scalability matters

SpaceWERX takes early risks, backing ideas as early as the white-paper stage. They might seed your concept with about $75K to prove feasibility or fund $1.25M–$2.25M to build a prototype through a Phase II. Larger opportunities come later through Strategic Funding Increase (STRATFI) awards, which combine SpaceWERX, program office, and private capital into efforts that can reach $60M+. At every step, they focus on whether your tech can scale into an operational capability for the Space Force.

2. Dual-use thinking reduces your risk

Arthur breaks dual-use into “little C” (mostly defense-focused with private capital interest) and “big C” (commercially ubiquitous, like GPS). Both can work. The point is to avoid relying entirely on the government as your only customer. A credible commercial path (even if it’s just on your future roadmap) gives you staying power.

3. Show up before you need funding

One of the biggest mistakes SpaceWERX sees is poor timing; companies showing up only when they need funding. Instead, engage early. Attend events, join programs, and build relationships before you ask for money. If they already know you and your tech, it is far easier to get pulled into funded opportunities.

4. Align with current priorities

If you can help the Space Force with space superiority, orchestration of proliferated satellite constellations, or AI/ML for space operations, you are solving high-priority problems right now. These are areas where funding and partnerships are actively being built.

5. Plan for transition from day one

SpaceWERX designs every award with a transition partner in mind, but only a fraction of projects make it across the finish line. Founders who keep transition pathways front and center from the beginning have a much better chance of success.

This is just the start. In future episodes, we will be speaking with other stakeholders across the DoD to go deeper on how to navigate defense procurement, secure funding, and scale inside this ecosystem.

If you are at the beginning of your journey and building technology with potential to serve both defense and commercial markets, apply for funding at www.outlander.vc. 

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