How the U.S. Navy is Streamlining Startup Partnerships to Modernize Its Tech

The U.S. Navy is actively reforming its approach to working with startups in a bid to adopt innovative technologies more quickly and efficiently. According to Chief Technology Officer Justin Fanelli, the Navy has spent over two years simplifying its procurement processes and is now more open to partnerships than ever before. The shift includes the use of an ‘innovation adoption kit’ to help bridge the ‘Valley of Death’—where promising technologies often fail to transition from prototype to deployment.

This new approach includes a three-phase ‘horizon’ model (evaluation, structured piloting, and enterprise scaling) and starts with problem statements instead of predefined solutions. A notable success story involves a cybersecurity startup, Via, which moved from proposal to deployment in under six months. Other success cases include process automation that eliminated years-long invoice backlogs and IT upgrades that significantly improved sailor efficiency.

The Navy is particularly focused on AI, alternative GPS, and modernization of legacy systems like air traffic control. Despite limited budget allocations for emerging tech today, Fanelli expects this to grow. Challenges remain, such as funding delays and technical debt, but the Navy aims to be a viable and attractive partner for commercial tech companies. Fanelli’s message to startups is clear: if you want to make an impact, now is the time to collaborate.