An effort to help the Pentagon understand the private sector has been shut down unexpectedly due to lack of funding. The Defense Ventures Fellowship program, run by Shift and AFWERX, embedded individuals with startups and venture capital firms to bring innovation to the Pentagon. The contract with Shift was awarded on September 29, 2020, with a base year and three option years. Due to fiscal constraints and expected funding cuts in 2025, the FY-24-year option was not exercised.
The Air Force faced funding challenges due to defense-spending caps and operating under a continuing resolution. Shift founder Mike Slagh expressed disappointment over the program’s closure, as it was highly regarded within both DOD and industry circles. Despite this setback, Slagh remains hopeful that efforts to bridge the gap between the Pentagon and the defense industrial base will continue.
