Description
The National Security Technology Accelerator (NSTXL) is a nonprofit government innovation and acquisition intermediary that manages consortium-based Other Transaction Authority (OTA) contracting vehicles designed to rapidly connect commercial and defense technology innovators with U.S. Department of Defense (DoD) prototyping and development opportunities. It is not a traditional venture capital firm or accelerator that writes checks in exchange for startup equity.
Pre-Commercial / Prototype Funding: NSTXL connects companies — including early-stage tech innovators — to DoD prototype and contract opportunities through OTAs like S²MARTS and the Space Enterprise Consortium (SpEC). These are government contract awards rather than conventional VC funding rounds.
Prototype & Applied R&D: Enables engagements where companies can bid on prototype work (e.g., microelectronics, hypersonics, space systems) under DoD OTA solicitations.
• Direct Equity Taken: NSTXL does not invest equity in companies in the traditional VC sense, nor does it take a fixed ownership stake in startups for participation in its programs. Its model is government contracting facilitation and consortium membership rather than capital investment for shares.
• Government Contract Awards: When a company participates successfully under an OTA solicitation, it may receive contract funding from DoD to perform prototyping or R&D. These awards are contracts or agreements for service/performance and not equity investments, meaning there is no share ownership exchange tied to that funding.
• Membership Model: Innovators join NSTXL’s network to gain access to OTA opportunities, teaming, and proposal submission rights; this membership does not involve giving up company equity to NSTXL itself.
Submission Method:
• Join the NSTXL member network to access OTA solicitations and submit white papers, proposals, and technology solutions.
• Potential participants typically sign up through NSTXL’s membership portal and later respond to specific OTA opportunities with proposals that may lead to contract awards.
Eligibility
Sector Focus: Defense-aligned technologies (e.g., microelectronics, hypersonics, space systems, AI, trusted systems) that can meet DoD innovation priorities.
Geography: U.S. and international companies can participate as long as they qualify under program requirements and compliance standards.
Stage: From early innovators to established firms seeking DoD prototype contracts; stage is defined by project capability rather than typical startup fundraising stage.
Team: Teams capable of delivering defense-relevant technology solutions and meeting OTA performance requirements.
Process
Membership Enrollment: Companies enroll as NSTXL members to gain access to OTA solicitations and teaming boards.
Technology Discovery & Proposal Submission: NSTXL issues OTA calls for proposals; members submit for specific projects.
Government Evaluation: DoD program offices evaluate proposals and select performers based on mission fit and capability. NSTXL does not decide awards; the government does.
Contract & Execution: Selected companies enter into performer agreements to execute prototype/development work paid by the government.
What an Applicant can Obtain
Government Contract Funding: Access to prototype and development contracts issued under OTAs for selected proposals.
Teaming & Networking: Access to a large network of innovators, prime contractors, and government stakeholders.
Proposal Support: Information, events, and resources to help navigate DoD acquisition pathways.