U.S. Navy opens its Doors to Startups with new Innovation Model

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U.S. Navy opens its Doors to Startups with new Innovation Model
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The U.S. Navy is rebranding its approach to innovation, actively courting startups with a clearer, faster path to partnership.

Under the leadership of CTO Justin Fanelli, the Navy has been streamlining outdated procurement systems and launching what it calls the “innovation adoption kit”—a new framework to onboard cutting-edge tech from the private sector.

From RFP to deployment in months, not years

One standout example is cybersecurity startup Via, which went from proposal to pilot in under six months. The Navy is adopting a “horizon” model, evaluating startups in three phases: assessment, structured pilot, and scale-up. The twist? The Navy now leads with problems—not pre-baked solutions—encouraging more agile, creative responses.

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What the Navy wants now

Top priorities include advanced AI (beyond generative use cases), GPS alternatives for unmanned systems, and legacy system modernization—from air traffic control to ship-based tech. Despite long budget cycles, Fanelli is pushing to allocate a larger slice of Navy resources to non-traditional defense innovators.

Results and traction

From clearing two years’ worth of invoices in weeks using RPA, to saving 5,000 sailor hours with improved network infrastructure, startups are already proving their value. The U.S. Navy is measuring success across five key metrics: time saved, resilience, cost, adaptability, and user experience.

A new message to tech

Fanelli’s pitch is clear: if your startup solves real-world problems and can deliver results, the U.S. Navy wants you. Backed by shifting sentiment in Silicon Valley and a growing appetite for public-private collaboration, the Navy is positioning itself as a viable, attractive market for innovation.

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