About Kyle
Kyle Olson's path to defense tech started in a firefight. As a Marine Raider Team Commander in Iraq in 2020, he found himself coordinating airstrikes with a broken military radio. The solution? A forbidden Iraqi cell phone and Signal messaging app. That moment crystallized something he'd long suspected: commercial technology had outpaced military equipment in many areas. Instead of heading to business school as planned, Kyle joined Fairwater Labs, where he's now COO, helping build the next generation of defense tech companies.
About Fairwater Labs
Spun out of a major Bay Area VC firm, Fairwater Labs is productizing the defense innovation process. Unlike traditional venture studios that retain majority ownership, Fairwater gives founders control while providing deep operational support. They've developed a systematic approach to identifying market opportunities, matching them with the right founders, and supporting early growth. The model is working: their first company achieved a successful exit within 36 months, and they're on track to launch four new companies in 2024.
Key Takeaways
Not Every Success Needs to be a Unicorn: While traditional VCs chase billion-dollar outcomes, Fairwater proves that smaller exits can create meaningful value. Their economics allow them to target markets that might be too small for traditional venture but perfect for focused execution.
The Co-Founder Approach: By structuring themselves more like a co-founder than an investor, Fairwater can support companies through early growth while maintaining founder independence. This model attracts talented operators who might not fit the traditional startup founder mold.
Ideas vs. Execution: With hundreds of potential companies in their backlog, Fairwater has learned that ideas are abundant. The key is finding people who can execute through ambiguity and uncertainty.
Dual-Use from Day One: While their companies start with defense focus, Fairwater encourages commercial applications. This helps companies survive the "valley of death" while building sustainable businesses.
The Power of Focus: Rather than trying to boil the ocean, Fairwater companies often start by solving one specific problem extremely well. This creates natural expansion opportunities while delivering immediate value to users.
For more on Fairwater: fairwaterlabs.com
For more about Kyle: https://www.linkedin.com/in/kyle-o/
For more Crossing the Valley: https://youtube.com/@crossingthevalley
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