Last month I met the Founder of a jetfuel startup at a fundraising event in Brooklyn Navy Yard. Here are some reasons why I think they stumbled upon an excellent strategy that landed them $10M in government contracts and $30M in funding.

Note: this article is related to the previous one I wrote on the future of manufacturing. Feel free to read it here.

Their product: hand size Jet fuel cartridges that can be printed from a $10,000 3D printer. His competition– Two large manufacturers whom make 30,000 gallons of jet fuel at once.

Here are some of the reasons I like their product strategy:

1. Easy to understand product – They make Jet Fuel cartridges.
2. Niche– Defense Industry. Apparently, their original idea was to serve the spacecrafts and rocket industry, but they pivoted because Elon was likely preparing something similar himself in house.
3. Differentiator – It can be produced 5x as fast, any where, and in any quantity. Think off shore bases, carrier ships at sea. The two primary suppliers are based in Utah and it takes a lot more effort to produce and ship the product.
4. Pricing – I don’t know. I’m sure it’s much more expensive, BUT the US Defense Department is not a price sensitive customer.

And sometimes, it’s as simple as that. Overall, a great example of a startup and something I’d consider investing in. I’d imagine most of the process and technology to create the product already existed but was never picked up. This does raise competitor risk in the future, but government contracts are a relationship-based

Here is the company if you’d like to learn more: https://firehawkaerospace.com/