Startups trying to serve the U.S. military often encounter an invisible but very real force: the structural budget constraints of the Department of Defense. In this candid conversation, Lt. Gen. Clint Hinote breaks down why—even in an era of enthusiasm for innovation—so few non-traditional technologies make it across the so-called “valley of death.”
Spoiler: It’s not because government doesn’t want to work with you. It’s because the system is stacked against fast transitions.
From his vantage point as a former top strategist and current Dcode Field Expert, Gen. Hinote demystifies how the money actually flows inside the Pentagon, why requirements are the make-or-break signal for any product, and how companies without billions in “patient capital” can still navigate the system successfully.
Key Takeaways
- Budget structure, not willpower, is the primary obstacle.
Most of the DoD’s budget is locked into large, high-cost programs and personnel costs—leaving little margin for funding new capabilities, no matter how effective or affordable they are. - R&D and prototype dollars ≠ procurement.
Getting a SBIR or prototype contract is only step one. Moving from experimentation to a program of record requires navigating an entirely different pot of money—with a different process, timeline, and oversight. - Requirements are everything.
The presence of a vetted, documented requirement makes a product “real” in the system. Without it, even the best solution struggles to find a home. - Programs of record aren’t always the best path.
For many companies, the better route is recurring revenue via O&M dollars or commercial off-the-shelf sales—not chasing a unicorn program that might never materialize. - The acquisition system is adapting—but slowly.
Gen. Hinote discusses early signals of reform under the Trump administration, including executive orders and acquisition pathway updates, but urges companies to temper their expectations. - Winning companies find their fit.
Success often comes down to identifying who inside the massive DoD actually needs your product—and building advocates who are empowered to push for adoption.
Watch the Full Conversation
Want this kind of insight for your company or agency?
This is just a sample of the kind of deep, unvarnished expertise you get inside the Dcode Nexus community via our Federal Accelerator.
And if you’re on the government side, General Hinote serves as a Dcode Field Expert, bringing this exact expertise directly to our agency clients.
👉 If you’re a startup or growing tech company trying to grow in federal, learn more about the Federal Accelerator: https://dcode.co/federal-accelerator/.
👉 If you’re a federal agency, see how we help accelerate tech adoption through rapid acquisition, fiscal agility, and creating mission-aligned outcomes: https://dcode.co/tech-enabled-government/.
