How We Hatched: Michael Hauser, VP and Managing Partner of SAIC Ventures
Welcome to our most recent episode of How We Hatched! In this episode, you’ll hear from Michael Hauser, Vice President and Managing Partner of SAIC Ventures. SAIC leverages IT and digital engineering to solve the government’s most pressing challenges while strategically investing in national security and commercial dual-use startups.Tune in to discover:
If you’re a founder aiming to make an impact in the federal space, this episode is a must-listen!
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:com today.
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:Welcome to The Pair Program from hatchpad,
the podcast that gives you a front
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:row seat to candid conversations with
tech leaders from the startup world.
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:I'm your host, Tim Winkler, the
creator of hatchpad, and I'm
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:your other host, Mike Gruen.
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:Join us each episode as we bring
together two guests to dissect topics
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:at the intersection of technology,
startups, and career growth.
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:Let's jump in.
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:So Mike, thanks for joining
us on The Pair Program.
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:Um, this is a, another bonus episode of a
mini series that we call how we hatched.
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:And, and, you know, today we've got
Michael Hauser spending time with us.
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:Mike is the managing partner at SAIC
ventures, uh, where he's responsible
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:for leading SAICs investment strategy,
collaborating with startups to create
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:value for, for government customers.
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:Um, I'm very excited to have you join
us, Mike, as we continue to Kind of
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:use our platform as a medium to build
more awareness around the innovations
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:that are happening across defense
tech and, and GovTech at large.
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:So again, thanks, thanks for
joining with us on the pod.
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:Michael Hauser: Yeah, Tim, it's great.
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:Thanks for having us.
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:I'm excited to kind of tell the story
and, uh, share whatever we can about
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:the value we're creating at SAIC and
for our great government customers.
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:Tim Winkler: Excellent.
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:All right.
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:Now, uh, we kick it off.
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:I always like to start every one
of these episodes with a pretty
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:thought provoking question.
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:You know, what did Mike Hauser
have for breakfast this morning?
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:Michael Hauser: I met a, uh, a
new friend, uh, alumnus of, uh,
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:Michigan Business School, go blue.
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:Uh, and that at Tate and I had a lovely,
uh, pastry with pistachio and tomato.
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:It was amazing.
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:Oh, wow.
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:Um, and a, uh, I also highly,
highly, highly recommend, um,
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:their Mediterranean latte.
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:It's got a little caram in it.
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:It's delicious.
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:So what's
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:Tim Winkler: the name of this place
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:Michael Hauser: called Tate?
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:It's a chain in the DC area.
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:It's, I think they're up and
down the east coast at least.
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:It's kinda like, uh.
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:Mediterranean inspired Starbucks.
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:Tim Winkler: Okay.
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:Nice.
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:Yeah, always a, always a fan of a new
plug on, on a restaurant cafe, something
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:that there's going to be lots of food
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:Michael Hauser: references today.
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:So, you know, there's ample
opportunity for sponsors here.
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:That's
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:Tim Winkler: exactly right.
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:We're, we're always tapping some,
some, uh, food and beverage sponsors.
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:It fits right into our theme.
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:Um, and then, you know, real quick,
where are you physically calling in from?
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:Where are you based out of?
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:Michael Hauser: Yeah, I,
I'm in Kensington, Maryland.
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:Um, we're headquartered in Reston,
so I get to have fun in the American
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:Legion bridge sometimes, um, and out and
about with our, our startup portfolio
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:Tim Winkler: and other VCs as well.
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:Since, since a little bit of sarcasm
there in terms of, uh, there's no traffic
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:in the DMV area, no traffic in the DMV
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:Michael Hauser: bridge and four 95 is
immaculately designed and it's just.
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:Tim Winkler: We welcome, we welcome folks
to reload here and enjoy the open streets.
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:Yeah.
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:Um, I love it.
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:So now to just kind of set the
stage for our guests and what we're
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:going to dissect on this episode.
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:So we're going to be covering SAIC
ventures, uh, role and mission,
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:uh, kind of lead that into the
strategies that you all are crafting
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:for accelerating, go to market for
the startups across your portfolio.
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:I'd like to highlight the value prop of
partnering with a large defense prime
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:contractor like SAIC, the impact on
the startups, on you all, the prime,
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:and then the end customers, the U.
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:S.
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:government.
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:And then lastly, we'll close
with the future outlook on the
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:defense tech startup ecosystem.
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:Uh, from your point of view
and what we can expect from
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:SAIC ventures in the future.
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:Uh, so Mike, why don't you lead us
off with the, kind of the mission
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:at SAIC ventures and explain how
you all integrate startups with a
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:large defense contractor like SAIC.
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:Michael Hauser: Of course.
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:And, and I think it, you know, may
make a little bit of sense to kind
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:of talk about how we fit into the.
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:Strategy at SAIC because we
are a strategic investor,
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:not a financial investor.
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:Yeah, good point.
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:On that spectrum from, you know,
super financially motivated, you know,
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:completely off the balance sheet.
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:There are some out there like,
uh, next 47 at Siemens, right?
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:Great firm, wonderful pedigree,
track record of wonderful investing.
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:Um, and they might as well be Bessemer
or Sequoia or a 16 Z that happens
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:to have a company as the the gpn lp.
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:We're on the other end of
the spectrum, super tied to
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:SAIC's core business strategy.
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:We are all about IT, digital
transformation, and digital
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:engineering, you know, about 60, 40
across those two segments of work.
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:So on the IT digital
transformation side, right?
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:It's cloud, it's cyber,
it's EIT, enterprise IT.
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:Um, we've got software and all
sorts of capabilities around helping
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:government customers operate on prem,
operate on cloud, and then get into
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:secure network environments, operate
in JEDC2 environments, get out to the
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:mission edge, um, be able to drive
financial or health care or other
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:civilian agency transformations, right?
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:So it's both NatSec and civilian as well.
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:Tim Winkler: Okay.
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:Michael Hauser: Um, on the digital
engineering side of the house.
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:A lot of the same fundamentals in
digital transformation, a lot of software
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:driven innovation off of commercially
available software tools and how we help
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:government customers interoperate and
integrate across those tools to leverage
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:digital twin, digital thread, model based
systems engineering, but not typically
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:That's the prime on a system, right?
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:We're not making tanks,
trucks, boats, airplanes.
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:We do make some things.
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:We are, you know, kind of an
OEM on on some smaller systems.
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:And that experience really helps
us then bring this up to a systems
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:of systems level as an integrator.
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:Um, and to do those tasks for for our
customers, we've kind of learned over
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:the last four or five years that it.
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:There are great commercially available
technologies as well as bespoke for
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:NatSec technologies that can really
help customers faster and get the
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:mission outcomes that are bigger
and better, um, in less lead time
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:when we can bring them technology.
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:And so we've constructed this model,
um, in our chief innovation officer
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:organization with a group of folks
like me that are basically business co
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:founders to technology professionals.
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:And then we have technology professionals
in digital engineering and in, in digital
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:transformation, as well as a kind of
farther reaching CTO organization that
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:bring capabilities to our customers
where they kind of look like a technology
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:platform, right, where We can sense the
similar needs, let's say, in, in, in, in
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:cloud at the Air Force, in the Navy, at
the Department of Treasury, or at the EPA,
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:and kind of look at a meta level and say,
wow, these sorts of capabilities, they
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:lift up to this enterprise class solution.
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:Let's go build that once, and
then we can deliver the Air Force
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:a cloud one, we can deliver the
Treasury a T cloud, recomposing
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:these elements together differently
to meet the different mission needs.
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:That are both secure, resilient,
multi cloud environments for both
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:those different customers differently,
but off the same foundation.
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:And so what we've figured out how to do is
bundle these technology, these technology
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:capabilities from commercial providers.
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:We can even provide them on
commercial business terms frequently.
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:We have some business models for that,
and we've grown this internally inside
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:the company to, you know, several hundred
million dollars of, of, of able ability
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:to transact through our businesses
on those commercial business terms.
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:And that's really what Lauren
Knausenberger's team together does.
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:I sit running the ventures team
and a part of that team called
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:partnerships, products, and ventures.
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:It's an integrated operating system.
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:To bring all of these commercial
technologies, it doesn't matter
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:whether it's hyperscaler tech from
AWS or from Azure, or it's a software
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:tool from a Zscaler, um, or whether
it's coming from a venture backed
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:startup, a big one like a Dataiku.
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:Or a little earlier stage startup where
they really need the help to get them
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:into government, um, to learn government,
um, like a Zage, an Orca or a Morpheus
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:where our three investments are today.
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:And I can't emphasize enough how
different this model is from a venturing
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:perspective because our strategy is
all around bringing innovation faster
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:to as many customers as can adopt
it as quickly as they can adopt it.
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:So the value to the customer is
getting rapid access to innovation.
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:The value to the startup is about
accelerating their pace of growth, right?
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:It's a go to market focus.
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:And then because of that go to market
focus, there's business benefits to SAIC
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:too, and it really just flows that way.
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:Yeah,
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:Tim Winkler: that's fantastic.
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:I think it's a really smart model.
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:Um, kind of providing those in kind
services based on, you know, the
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:resources that you bring to the table
as a, a large organization and then the
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:connection points, uh, and, and the.
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:really the outlet to, uh,
get that technology in the
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:hands of end users quicker.
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:It's a common theme, right?
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:We hear it all the time.
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:Is this this narrative of You
know, doing business with the
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:government is slow as molasses.
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:And, you know, I, I don't
even know where to begin.
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:There's so many, so much red tape to cut
through, uh, over the last, you know,
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:five, 10 years, um, I'd say more so
recently, uh, there is this overarching
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:theme, uh, to modernize quicker.
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:Uh, and I think, you know, a lot of that
is part, part in, in, in two of what's
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:happening around the world and, and at
the speed of what, you know, if we're
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:just going to use defense as an example,
the speed at which new technologies are
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:being injected into warfighters or, you
know, drones and, and how different,
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:you know, wars are being fought.
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:On the battlefield today than they were,
you know, 10 years ago, the, the idea
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:that, um, you know, the government,
uh, you know, uh, primes, uh, and,
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:and, uh, product companies at large,
like working together harmoniously
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:to achieve a common goal, which is,
we know we need to speed things up.
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:We know we need to get this into
the hands of end users faster.
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:And how do we do that?
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:And I think this is a really creative.
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:Model and concept, uh, to kind
of demonstrate that quickly.
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:Uh, you kind of touched on it briefly,
but I want to hone in on it just
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:a little bit, a little bit more.
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:So, um, you know, with some of these
companies that are within your,
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:would you call it your portfolio?
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:Um, what, what is there some common
themes in terms of the size that they're
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:at when they come, uh, to you all?
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:Uh, you know, we, you know,
we oftentimes we'll hear.
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:You know, seed or a, um, are you kind
of open on that or do you like to, to
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:really kind of sink your teeth in when
it's super early stage and groom that
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:where, where's that sweet spot fall
in terms of the size of the company?
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:Michael Hauser: Yeah.
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:So, so what I really like about
our, our kind of different approach
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:to being a CBC that's, that's
very go to market focused is.
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:We are typically very round agnostic.
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:Um, there are very specific
boundaries that we think about
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:to make venture investments.
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:But our model is not to start
with a writing a check and then
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:figure out the thing we can go do
and or leverage with the company.
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:And, you know, if we get
to that thing, great.
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:Our TCCs are built around having market
impact based on what we know about
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:the company when we engage with them.
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:And so we might come across, um, you
know, a mature seed stage company that's
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:got tech that works, the use cases
it can function in, or maybe a little
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:bit narrow, we may just partner with
them for a little while on, on some
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:commercial engagements with government
customers to put it where it works.
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:And then that could then lead to,
you know, when they get to their
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:mature a stage series B and beyond
where we're really focused on, on co
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:investing with bonafide, referenceable.
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:Value creating co investors
around the cap table.
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:We really ascribe to the, it takes a
village to just like my 14 year old son.
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:Right.
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:These are middle school maturity companies
that are going to, you know, hopefully
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:be great things when they're fully
formed adults, but the here to there
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:is a tenuous journey is going to take a
lot of help from, you know, the church,
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:from the teachers, from the members
of the community and us as parents.
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:Uh, with Jen and I, so, you know, it's
going to be kind of the same way with a
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:portfolio company to get them there, to
get to that, that exit, that outcome.
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:Right.
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:Um, we kind of feel that way as well.
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:And when we can get in at a
meaningful, valuable stage,
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:relatively early, typically, right?
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:Mature A.
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:Into series B, maybe a little bit later,
that might be the first check we write.
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:Okay.
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:We may partner sooner,
we may partner later.
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:Um, I mentioned Dataiku earlier, right?
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:They were raising their, you
know, very mature series.
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:I think it was E or G, I
don't even remember right now.
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:Around the time that we were, you
know, thinking about leveraging
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:them into our data science platform.
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:And we have a wonderful
commercial relationship with them.
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:The one to 5 million typical check
size that we write at that round,
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:it did not make venture sense.
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:We did not do it.
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:And because we are products, partnerships
and ventures, not a ventures team,
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:all on its own, motivated by writing
checks, have to deploy capital at the
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:rate, you know, all of those pressures.
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:That a lot of other CVCs face that
VCs face, we've kind of designed
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:this a little bit differently
so that we're really focused on
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:creating the go to market mission.
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:Tim Winkler: Yeah, it's, it's something
that, uh, yeah, you seem to have found
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:a real, a real, you know, unique outlier
with regards to how you collaborate.
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:Um, you know, it sounds like
it's kind of size agnostic.
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:Um, some might not need the capital,
but they just need more of the.
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:You know, access to customers or the
ability to get the technology into the
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:right hands of the user that makes sense.
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:And, and you all kind of, you know,
evaluate the needs where they exist
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:within those companies when they approach
you, um, or when you approach them and
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:then, uh, you know, navigate accordingly.
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:Um, you know, I, I love the,
uh, the, the different models
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:that are kind of popping up.
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:Across, uh, the, uh, across the landscape.
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:And, you know, we've been having
a lot of really interesting guests
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:on the episode on the podcast.
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:Um, we talked to the, the CTO of the
Navy, uh, just this week actually.
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:And, uh, they're, you know, explaining
the ways that they're streamlining their
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:direct access to, uh, like structured
piloting approach to, to working
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:within, uh, them as the end customer.
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:And then you've got interesting
organizations like defense innovation
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:unit, you know, part of defense.
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:Um, who are just also, you know, kind
of like serving the opportunities, uh,
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:creating the pipeline, but aren't really
taking a, uh, a capital stake, uh, if
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:you will, um, and it sounds like you
all kind of like pull a little bit of,
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:you know, a little bit of everything
to, to craft your own thesis and, and
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:what makes the most value for, for
the startup and for the customers, we,
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:we, uh, kind of talked a little bit
about this as well, but I want to just
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:reemphasize, you Ideal verticals that you
look to kind of prospect for companies.
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:Michael Hauser: So for us, it's really
across the broad range of those two
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:families of differentiators, along with
where our business groups may need.
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:Bespoke tech for their
own vertical, right?
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:So across, let me kind of
walk through those stepwise.
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:So if I think about our, our
digital innovation factory, they're
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:really focused on the next two,
three years of bringing offerings
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:around secure and resilient cloud.
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:Um, around doing operational A.
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:I.
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:And mission A.
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:I.
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:Around secure and trustworthy
data and analytics on then the on
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:demand delivery of outcomes that
which is typically software based.
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:So it's software mod, software upgrade,
app development, app integration in
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:the cloud, all those kinds of things.
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:Um, these are really, you know, at
the core of our six differentiators At
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:the company wide level that Tony Towns
Wheatley, our CEO, talks about all
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:the time, and then you add to that the
digital engineering innovation factory,
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:and you bring in digital engineering
for digital twin, digital thread,
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:model based simulation engineering,
ModSim technologies, as well as the
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:ability to design, develop, produce,
sustain, and maintain hardware solutions
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:as a kind of systems integrator.
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:Those are the six
differentiators of our company.
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:And so those are dimensions
that we're focused down and in.
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:We can deliver these things on
mission with customers on contracts.
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:We have on contract growth, right?
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:The 80 some odd percent of our contracts
have the ability to transact commercially.
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:It's why I think about that, that
of the performing contracts we
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:have today, a vast majority of them
can get access to technology on
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:commercial business terms with us.
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:Yeah.
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:And in will are two different things
and program managers and the contracting
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:officers on the government side of the
table on our side of the table need to
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:figure out how to use those contract
clauses, but they're there wide open.
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:And then there are all the new bids
that we think about going after as we
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:look to grow as a company, because this
entire enterprise under Lauren, right,
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:the chief innovation officer team, we
are the technology driven growth engine.
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:And the business model.
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:Um, creation growth engine of the company.
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:We're really taking those differentiators,
finding technology ingredients in them.
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:Um, and the ingredient analogy
I think really works here.
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:Um, if you think about tech from
the startup as the peanut butter
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:in a Reese's peanut butter cup.
341
:Um, sometimes that tech needs to
get wrapped with some chocolate, the
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:peanut butter, chocolate around it.
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:And so peanut butter plus SAIC
chocolate equal peanut butter cup.
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:But you know, most government agencies
don't go to seven 11, like my son does to
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:go, you know, get a treat and just buy a
tech and then figure out what to do with
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:it, how to integrate it, make it work in
or operate with all these other systems.
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:The government customers we've learned
really want like a Dairy Queen blizzard.
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:So here's your next plug opportunity, um,
from, from very, um, and so, you know, we
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:take that Reese's peanut butter cup, we
go get the milk that might be the AWS or
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:the Azure store and compute in the cloud.
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:We then go get the ice cream, right?
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:That might be the force point guards
and the Cisco routers and all of these
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:other it hardware, software integrations.
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:Um, and then we got to go, you know,
put it in a blender instead of going
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:to Walmart and buying a blender.
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:Well, that's our labor hours, right?
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:We'll make it all fit together
and the outcome is a blizzard.
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:It's a Reese's Buttercup blizzard.
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:It's a solution to a problem.
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:Um, and so when Zage is the peanut
butter, we wrap it with some SAIC tech.
361
:We combine it with AWS Store
and Compute and the Cisco
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:this and the Forcepoint that.
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:The Zscaler, the other thing.
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:Go on down the hardware
and software S bomb.
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:Throw it in the blender with our people.
366
:We now get what we're doing in
airborne battle management, command
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:and control for the air force.
368
:And we've got solutions that
are operating with that bundle.
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:Out there in the field today, right?
370
:Within a year's time of from idea to field
it at a bunch of sites in North America.
371
:And these are real success
stories of delivering Dairy Queen
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:blizzards to government customers.
373
:Um, so we know the model's working and,
and that, that area you talked about
374
:earlier around war fighting, right?
375
:All domain war fighting is one
of the national imperatives
376
:we think about at SAIC.
377
:There's undersea dominance, Border of
the future citizen experience, all domain
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:warfighting, and the next gen space, we
really see great capability out there all
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:over the world, quite frankly, especially
as we think about national security
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:becoming a five eyes and acres integration
reality, where systems integrators
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:can be the folks in the ecosystem
who can be on the lookout for novel
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:emerging tech in the startup community.
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:And it can be the right piece
of candy in the Dairy Queen
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:blizzard, different milk now.
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:It
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:Tim Winkler: sounds like
a delicious solution.
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:Uh, and we, we did promise the listeners
we're going to have some food references.
388
:So that is the perfect
little segment right there.
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:Yeah.
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:Um, so.
391
:You, you mentioned, um, uh, how
many companies right now you said
392
:that are kind of going through the,
the, the venture program with you,
393
:Michael Hauser: you've got three
in the portfolio, um, we're
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:diligencing a gaggle right now.
395
:It could be our next investments.
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:You know, we've been at
this for about three years.
397
:We lovingly called several of us.
398
:Within the company, the Venture Capital
Club, we came this close to printing
399
:t shirts on the member of the club's
cricket, um, kind of sort of in joke and
400
:kind of seriously, but it was really a
pilot to figure out how venture investing
401
:could fit into this larger partnership, go
to market focused value creation approach.
402
:Proving that it works.
403
:And then as we honed in on these
six differentiators that are a
404
:near term focus, we can talk about
some of the longer term ones.
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:Those will be fun a little bit later, Tim.
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:Yeah.
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:As we honed in on these, you know, we made
the decision earlier this year to make
408
:corporate venturing kind of a real boy
relative to the wooden boy it was before.
409
:Tim Winkler: Yeah.
410
:Michael Hauser: So now we're animated
with a team and a focus and a thesis
411
:and an investment committee, right?
412
:All of the infrastructure we need to have.
413
:Yep.
414
:As a CVC to move out.
415
:And that's what we're doing.
416
:Tim Winkler: Yeah.
417
:So I'm, I'm curious in terms of, um,
forgive me if you already kind of pointed
418
:this out, but Uh, identifying the, the
problem and then sourcing the solution.
419
:Is that kind of how you all operate?
420
:Or is it, I guess what I'm trying to get
to is how are you identifying the, the
421
:companies that have the, the solution that
you foresee is going to be the solution?
422
:Fix this pain point.
423
:Michael Hauser: So, so there's
kind of three dimensions.
424
:I'll put on this.
425
:The first dimension is horizons.
426
:So is it something that we are collecting
the demand signal on today from across our
427
:business groups as part of the enterprise
strategy process, surfacing these
428
:needs from the 30 plus account teams?
429
:The five different business groups, right?
430
:So we've got Air Force, Navy,
Army, civilian, space and Intel.
431
:And between those five different
business groups, we've got a bunch
432
:of account teams underneath them.
433
:They're at the coalface every day.
434
:And we've created this almost real
time approach to get those surface to
435
:back up to us at the enterprise level.
436
:Yes, we're from corporate.
437
:We are here to help.
438
:Um, but be able to then go spot and scout.
439
:Inside out for capabilities that fill
those need states and and so that's
440
:kind of in the horizon one zone
and then in the horizon two zone a
441
:little bit further out in the future.
442
:These are technologies where the
demand signal may be low nascent today.
443
:It either the tech is too early or
the market's just emerging or some
444
:combination of the two and we know that
as integrators, government customers
445
:are kind of looking at us to figure
it out, help them figure it out.
446
:Um, those other domains include
things like, um, adding autonomy
447
:into a network battle space, right?
448
:Unmanned things have been around
for a while and now as those
449
:things begin to proliferate.
450
:The network integration above and around
and across them becomes really important,
451
:and that's something we think we're pretty
good at the customers like to buy from us.
452
:And so we're trying to add that into
the autonomy layers, uh, quantum
453
:sensing and encryption, right?
454
:Get this sometime this summer.
455
:They haven't done it yet, but
they're supposed to burp out some
456
:algorithms and set some standards.
457
:They'll probably be a bit of a freak
out because there'll be unfunded
458
:mandates for government agencies and
we'll be standing by to help them
459
:figure out how to become quantum ready.
460
:What they need to integrate and
operate to become quantum secure when
461
:that requirement eventually emerges.
462
:And so that will change the cyber
software bill of materials, maybe some
463
:of the hardware integration as well.
464
:So we'll be ready for that quantum
sensing a little bit later than
465
:that quantum computing at scale for
government, you know, a little bit
466
:later than that much further horizon.
467
:Um, secure and resilient networks, and
that's, you know, some, some of that is
468
:like 5G network integration kind of stuff.
469
:Some of that is a different
definition of networks as you
470
:move across cloud echelons.
471
:Low to high, high to low, um, and
also maybe across coalition partners,
472
:especially in the world we live
in now, the risks you are starting
473
:to surface that, you know, the U.
474
:S.
475
:and a Five Eyes or an ACUS or an
Indo Paycom, uh, interoperability
476
:kind of customer scenario, you've
now got to move different types
477
:of data across different security
levels with different permissions.
478
:To maybe even different partners, and
that's something we've started to do,
479
:and that means different technology.
480
:So those are some of the further
horizon areas that we'll look at.
481
:And again, that's a lot of inside out
thinking based on customer feedback.
482
:The second way we think is outside in.
483
:So we're getting feedback from
leading VCs, NatSec bespoke VCs
484
:from dual use tech investors.
485
:And we're getting feedback
on what's emerging.
486
:We can bring those tech trends
to our experts in the enterprise
487
:and create that knowledge loop to
inform the future that we haven't
488
:been able to previously imagine.
489
:And that's actually a really important
input that we bring to the table.
490
:It's almost like an input
to the strategy function.
491
:Um, and then the third vector.
492
:Um, this is where our business groups
say, Hey, um, you know, I'm the space
493
:business group and I want to, you
know, be able to make this thing happen
494
:with new space space tech companies.
495
:Can you help me make that thing happen?
496
:Can you help me in my business?
497
:One business group make things happen
for my customer may not be relevant
498
:in those other business groups.
499
:And that's where we think differently
than this enterprise perspective.
500
:And we go deep rather than broad and
then scout or be informed by outside
501
:in and inside out what we should
go do without one business group.
502
:So those are kind of the three vectors.
503
:Tim Winkler: Yeah, I love the kind
of diversity to, um, you know,
504
:how you all are collaborating and
working with with different partners.
505
:Um, the, uh, kind of like that first
horizon that you were, uh, discussing,
506
:you know, in terms of some of some
sample timelines here on, you know,
507
:from introduction with the company to,
you know, getting, getting the, uh, the
508
:solution kind of packaged and rolled
out, do you have some sample timelines
509
:on, on what, you know, a founder might
expect when, you know, partnering?
510
:Michael Hauser: Let me, let me give a few
real examples because it really does vary.
511
:Um, You know, we met Orca security
probably about three years ago, invested.
512
:About two and a half years ago, it
took some time to help them, right?
513
:This was in the thesis to
collaborate for Orca security to
514
:be able to transact with the U.
515
:S.
516
:government.
517
:There were some things they needed to
accomplish in their technical baseline.
518
:There was some collaborative business
development we needed to achieve together.
519
:And, you know, it, the first
customer contract wasn't signed
520
:until, you know, about a year and
a half in to that relationship.
521
:Um, and that was knowing full well that.
522
:You know, Orca, they are a cloud native
application protection platform, CNAP.
523
:Um, that's been in the news
recently because of the
524
:dalliance between Wiz and Google.
525
:Um, you know, this is, this
is a capability that clearly
526
:is, is, is needed by a lot.
527
:Um, being able to integrate that
capability into a government environment
528
:is a little hard because of the nature
of government clouds, um, and multi cloud
529
:echelons and multiple incident levels.
530
:And there are a lot of
complexities in that.
531
:So it took a little bit of time.
532
:And that was a known set of
knowns and unknowns when we
533
:started with that right there.
534
:On the precipice of FedRAMP, that'll
open up civilian agencies for them.
535
:That was a known thing for us that we're
going to be not set focused to begin
536
:with on prem, not SAS, and then we'll
go to this other sales motion a little
537
:bit later when all of these other things
we're working on with them happen.
538
:Um, so that's one example.
539
:You know, I compare that to,
you know, Morpheus, uh, the,
540
:the second investment we made.
541
:That investment happened because
we were in real time working on
542
:partnership opportunities and the
investment opportunity emerged as the
543
:partnership opportunity was emerging.
544
:And so those two things kind of
happened together and the first sales
545
:happened like almost the same day.
546
:Um, Zage was a little bit different
and it's, you know, Zage, I think
547
:is like maybe the classic example
of what we'd ideally want to do.
548
:Um, cause we met Zage, um, when they were
pretty early, um, and we were talking
549
:to them about business collaboration
and they were doing a fundraise and
550
:they said, Hey, do you want to invest?
551
:And we were like, it's a little early.
552
:But let's keep the partnership
conversation going.
553
:Um, and we were able to have the
first business opportunity emerge
554
:during those partnering days.
555
:Um, and that led the CEO and chairman
of the board to kind of say, Hey,
556
:we're going to do another fundraise
soon, you know, some time later,
557
:um, would you like to participate?
558
:And then it was an obvious yes for us.
559
:And so right partner first
investment happens right partner
560
:first commercial opportunity sales
revenue generating venture invest.
561
:Um, we made the next sale the day
after, um, the wire transaction closed.
562
:And so it's been kind of Janie
bar the door with them for
563
:this capability from Zage.
564
:They're an IOT security company.
565
:We're actually using them in
secure networks environments.
566
:Thanks.
567
:Um, kind of edge where the computer
and mission network kind of
568
:operates as if it were edge compute.
569
:A lot of the zero trust software
stack we have today doesn't work.
570
:Zage allows us to offer a zero trust
environment for a secure network
571
:that's, you know, got nodes coming
in and off on and off, you know, um,
572
:periodically doing different things.
573
:Um, And they had that on their
go to market roadmap, like
574
:three years into the future.
575
:Okay.
576
:We were backing that up to today
when we did it, um, some months ago.
577
:And it's really opened up a whole
new sales channel for them because
578
:we've been able to find customer
needs where the tech's going to work.
579
:And our technical experts
can fit that to the mission.
580
:So going from IT protection, think
colonial pipeline hack to now, you know,
581
:uh, or OT protection, I should say.
582
:Um, that's something they didn't think
they were going to get to do yet.
583
:And that became a now business
opportunity, a growth opportunity
584
:for them that fit real mission
needs for our customers and our
585
:smart people are the ones who
integrated that Dairy Queen Blizzard.
586
:You know, this is that Reese's
Peanut Butter Cup story from earlier.
587
:It's out operating in the field today.
588
:So we've gone from like, you know,
thinking across a year or two's
589
:timeframe to, you know, being in
real time to actually having business
590
:being done before we venture invest.
591
:Right.
592
:It really just depends
on the circumstance.
593
:Tim Winkler: And is is the most common
use case that these companies are Really
594
:a hundred percent commercial or is there
a little bit of a mix or or when they
595
:when you all first kind of connect?
596
:Um, or is it uh, maybe they have
some work that they're doing in this
597
:civilian agency But they would love
to tap into defense or something
598
:Michael Hauser: So there's a, there's
a few different archetypes here, right?
599
:There's the, um, bespoke
for NatSec tech archetype.
600
:Um, where, you know, we, and we're having
conversations with folks all the time
601
:that kind of fit that MO where what
they're building is NatSec, you know,
602
:could they be dual use in the future?
603
:Maybe, maybe not.
604
:Um, you know, in those kinds of cases,
You know, if I, if I see a company and
605
:they're all SBIR revenue, um, that revenue
might as well be zero, even if the tens
606
:are a hundred millions of dollars, it's
really, you know, it's not, it doesn't
607
:look like ARR doesn't look well yet.
608
:Um, so that's probably too early.
609
:Um, if they've got going concern,
government revenue in that bespoke
610
:for NatSec tech kind of space.
611
:Um, that matters as an investor, uh,
if you're a B2B company, your dual
612
:use tech, you look at a company's
TAM and it's 10 or 20 or 30 percent
613
:government and it's 90 or 80 or 70
percent B2B, then we're really looking
614
:for it beginning to light off with real
market penetration in that B2B context.
615
:They may have never done
a dollar a business.
616
:With the United States government, they
may not be able to spell far, they may
617
:have no experience as long as they've
got the leadership team and board
618
:commitment to want to address government.
619
:We are more than happy to be
their partner in that world and
620
:take them from zero to something.
621
:Um, if they've got this base of B2B dual
use success, that's, that's going on.
622
:So two different contexts, two
wildly different scenarios.
623
:Um, I would say that last extreme
example of like zero experience in
624
:government yet is probably the exception.
625
:It's more likely in our experience to
see a company where, you know, they've
626
:experienced some of the, um, Beltway
traffic, like enthusiasm that we described
627
:earlier in their own attempts to sell
to government and they're realizing.
628
:That there is a path to revenue
that does not include direct prime
629
:contracts with the government,
um, which is not well understood.
630
:Mind you, I want to talk about
that in a second because I think
631
:it's a great discussion point for
us to get into if we could, Tim.
632
:But they then see that
through a company like S.
633
:A.
634
:I.
635
:C.
636
:That has access to hundreds of
contracts and thousands of task
637
:orders and many different new,
uh, competitions every year.
638
:So they can grow with us on contract.
639
:They can grow with us through bids
and proposals, and they think they
640
:can grow with us with a little
bit of government experience.
641
:So they kind of know what
they're getting into.
642
:That's the, that's the
perfect environment to be in.
643
:Tim Winkler: Yeah, I think that's a good
point to, to kind of outline because
644
:a lot of these companies aren't always
going to be so savvy and understanding
645
:the whole, the, the, the way that the
government works with, you know, with
646
:private businesses here, it's, you know,
the government contracting ecosystem,
647
:the primes, the subs, where are these
vehicles, how do I get access to them?
648
:So, you know, kind of serving as this,
uh, you know, mentor and coaching
649
:them along of like, yeah, you don't,
you don't have to just come in here
650
:and try to prime something, right?
651
:Like we, we can help with a lot
of these, all the heavy lifting.
652
:Let's, let's, let's expand on that.
653
:So if you wanted to kind of, You know,
pull on that thread a little bit and
654
:just kind of paint that picture, you
know, for the next wave of companies
655
:that might be eyeballing SAIC after
listening to this and say, you know
656
:what, you know, what else can I expect?
657
:Michael Hauser: Yeah.
658
:So, so I guess the first point I'd like to
make is, is not all primes are the same.
659
:I think in a lot of conversations,
there's this big lumpy bunch of
660
:government contractors called primes.
661
:And there are different
kinds of primes, right?
662
:There are the platform primes.
663
:The Boeing's, the Northrop's, the
Raytheon's, the Lockheed's and
664
:like, um, where they're building
very expensive government systems.
665
:There are startups that exist, right?
666
:Think about Adderall that are aiming
to compete at that prime level.
667
:There's a whole other
definition of prime contractors.
668
:Where sis like SAIC fit in where we are,
the prime contractor, we are the ones who
669
:win a 50 or a hundred million dollars or
$500 million or billion dollar, whatever
670
:the, the value is of the contract.
671
:Contract with the government.
672
:And then underneath that.
673
:Just like those platform primes where
they've got to build an airplane, you
674
:got the engine, you got the avionics,
you got the ailerons, you got the
675
:different composite metal parts, right?
676
:There's all of these suppliers
contributing those things to the platform.
677
:Well, on an I.
678
:T.
679
:Transformation or a digital
engineering transformation.
680
:We oftentimes have a
very similar approach.
681
:It's not just people doing things.
682
:Don't get me wrong.
683
:That is a big part of SAIC's
business and people enabled
684
:by technology is our strategy.
685
:And so those technologies can be
NATSEC bespoke, they can be dual use.
686
:And so being a subcontractor
to SAIC provides access to all
687
:of that addressable market.
688
:That goes to subcontract and
this is something that the D.
689
:O.
690
:D.
691
:can't publicize like it does
in its budget line items.
692
:Um, when we, when we look at, you
know, even Silicon Valley defense
693
:groups, uh, NatSec 100, right?
694
:The best data they have access
to is prime contracting data.
695
:Um, they don't get to see
Lockheed and Boeing's engine.
696
:Supplier sales or composite consumption
sales, or they don't get to see
697
:the equivalent from us either.
698
:It's, it's unseeable in the budget
docs because it's all being transacted
699
:through these other prime contracts.
700
:I would argue that selling for digital
engineering and IT transformation
701
:to the federal government is B2B
by different contracting rules.
702
:There are dozens, if not hundreds.
703
:Of contracts bid every year at
these are the big ones, right?
704
:Um, and then at the smaller
contracting level, there are thousands.
705
:These are all opportunities for
startups, but it's kind of hard to see.
706
:So the one benefit that as
a startup, you can get by
707
:collaborating with a prime like S.
708
:A.
709
:I.
710
:C.
711
:Where, you know, we're
not in it for the I.
712
:P.
713
:We're not a product company.
714
:We're not a platform prime.
715
:We're selling things sometimes, but
the things we're making are outcomes.
716
:Typically, they're not things
we're not writing billions
717
:of lines of software code.
718
:We're integrating lots of
people's software code to
719
:create a cloud environment.
720
:And so It's a different way of
thinking about accessing government
721
:contracts to be a subcontract.
722
:And basically what we're trying to do is
make that easier for customers to pull in.
723
:That's our commercial operating business
and make it easier for startups to access.
724
:And that's our partnerships
and ventures infrastructure.
725
:Tim Winkler: Yeah, it's, it's a
fascinating way to, to kind of view it,
726
:uh, because I think a lot of folks look
at an Andrew and, you know, they, they
727
:think like, that's the, that's kind of
like the, the, the golden egg, right?
728
:If we can.
729
:It doesn't need to be, it doesn't
need to be like that level, right?
730
:There's so much opportunity to come in
and just sub and just get that access and
731
:just kind of get that past performance.
732
:I think that's a big one that we always
hear about is like, you know, you need
733
:to, you need to have a little bit of
credibility before you go after that next
734
:contract and, you know, You don't always
get that opportunity unless you have a
735
:partner, like a, an SAIC to prime with.
736
:So, um, I think it's, I think it's
really creative and, uh, um, you know,
737
:if I'm, if I'm out here building some
sort of a technology and trying to do
738
:business with the government, I mean,
I think that this is truly a, um, you
739
:know, kind of big brother, a little
brother, you know, mentor, protege kind
740
:of example where, you know, you can walk
that line with them, show them the ropes
741
:and create that opportunity with them.
742
:Um, well, also, you know, just providing
really interesting outcomes for customers.
743
:Uh, so I, I, I love,
I love this, uh, idea.
744
:I love this concept.
745
:Um, it's something I'm starting to see
a little bit more, um, kind of, kind
746
:of be, um, uh, a model, uh, taken on by
some, some of the other primes as well.
747
:Um, what does the future look like,
uh, for, for you and your team?
748
:You know, if we're, you know, if we're
at a point right now where we've, you've
749
:got three companies that are just kind
of fully, you know, working with you,
750
:operating, delivering solutions, you
know, what does that look like in a
751
:year, three years, five years from now?
752
:Michael Hauser: Yeah.
753
:So for us, it's really not a
capital allocation argument.
754
:It's really about how many of these kinds
of relationships can we develop, manage
755
:and maintain through our partnerships
based go to market model at a time?
756
:How many new relationships with novel
venture backed startups can we kind of
757
:drive through the go to market system?
758
:We think that's Three or four or
five more in the fiscal year, and
759
:then, you know, that'll teach us some
more lessons and we'll figure out
760
:whether that's three or four or five
more next fiscal year, or it's more
761
:than that, or it's less than that.
762
:Um, but we think it's kind of
in those magnitudes because.
763
:You know, we've built this with an
enterprise approach where we can kind
764
:of do inside sales from the innovation
factory teams and their offerings
765
:into our different business groups
and then get onto contracts that way.
766
:So our business groups own the
customer relationships and the
767
:demand for this integration now that
we've kind of publicized this, the
768
:strategy for SAIC around our national
imperatives, these differentiators.
769
:Focused on growth vectors that are
kind of different market opportunities
770
:across our business groups.
771
:We we've seen like a 10 X increase
in the demand on our innovation pack.
772
:Wow.
773
:That's not all tech, right?
774
:But it really goes to show the
power that this has within SAIC.
775
:That demand signal has other technology
ingredients in it that are people
776
:that our customers are looking for.
777
:That's what's going to drive.
778
:The rate of our investments.
779
:Clearly, we're going to have to find
great tech from amazing companies that
780
:are positioned to grow at phenomenal
rates because that's the art and
781
:science of venture capital investing.
782
:And then we add the strategic lens on it.
783
:You know, we kind of got
a thread and needle here.
784
:The investment thesis, the
rationale, write a check here.
785
:It's a little different.
786
:I would argue it's a higher bar.
787
:Um, and so that kind of keeps
the rate of writing checks.
788
:You know, managed, uh, to be
something that's feasible, which
789
:therefore makes it executable for us.
790
:Tim Winkler: Yeah.
791
:And, and it also kind of allows you to
just go a little bit deeper with those
792
:companies versus just trying to take
on is, you know, they say in venture,
793
:like, you know, plant as many seeds as
you can and see what grows like versus
794
:really being a diligent and, uh, the,
uh, the technologies and the companies
795
:that you're, you're working with.
796
:Selecting, uh, and then
going deep with them, right.
797
:And really spending that time to, to
mature them, uh, and, and looking at
798
:that quality versus, you know, just
how many companies can we work with.
799
:Right.
800
:So, um, I love that part of the thesis.
801
:There are market places
802
:Michael Hauser: out there, Tim,
where we know because of the feedback
803
:we get from government that, you
know, we're going to need to be an
804
:integrator and be best of breed across.
805
:A fleet of different potential, um,
providers of that technology because
806
:it isn't universal enough that we can
just go bet on one for a capability.
807
:We got to be ready and you know,
this government agency over here
808
:to use this tech from this company
and this other government agency.
809
:Same need, same kind of integration.
810
:But I need to use the same
tech from a different company.
811
:Yeah.
812
:And that's not a great opportunity
for us to venture invest.
813
:It might not even be a great
opportunity to strategic partner.
814
:Yeah.
815
:We need to be honest with those
providers that you fit here.
816
:You fit there.
817
:The relationship therefore needs
to not be this venture one.
818
:It's different one.
819
:Tim Winkler: Yeah.
820
:Michael Hauser: Um, and again, we've built
an operating system to account for that.
821
:Right.
822
:Um, it rate limits the deal flow.
823
:Tim Winkler: Yeah.
824
:So as a, uh, yeah, somebody that runs
a recruiting business and, you know,
825
:a lot of our listeners are always
kind of tuned into opportunities,
826
:career growth opportunities.
827
:Um, coming from, you know, commercial
government, a little bit of everything.
828
:Uh, you did kind of reference the
participation on, uh, you know, supporting
829
:on like the inside sales side of things.
830
:Do you all ever get your hands
involved when it comes to helping
831
:with staffing or recruiting, uh,
for some of those, those companies?
832
:So
833
:Michael Hauser: we're super careful with
what we say we're going to do and do with
834
:our startups to do what we're good at.
835
:Tim Winkler: Yeah.
836
:Michael Hauser: Um, yeah, we've got
in house recruiting teams that recruit
837
:for technical talent for our people.
838
:Um, that, that's not really
something we've considered offering
839
:to startups because our value
proposition to them is go to market.
840
:And so, yeah, there are corporate
venture capital teams out there, um,
841
:and we know some of them pretty well
that have like, we'll help you with
842
:your back office accounting and finance.
843
:You can have access to our recruiters.
844
:Um, we're trying to stay focused on our
value proposition and do the things that
845
:we say we're going to do with them well.
846
:Of course, if we're sitting at the
leadership table with that startup,
847
:because we're taking a board observer
seat, not a board seat, because
848
:that's part of our MO, and they've
got a talent challenge, and they're
849
:seeking counsel from advice on access
to things related to human capital.
850
:Will contribute when asked, but it's
not going to be the kind of thing we're
851
:going to make part of the, um, the full
meal deal, the packaged offering that
852
:goes out to every startup, like our
go to market collaboration, because
853
:that's core to what we're doing.
854
:Um, You know, it's really gonna,
you know, it's an opportunity for
855
:folks like you to really lean in and
support these startups where your
856
:expertise can be valuable to them.
857
:Um, from our perspective, what's
good for the startup is great
858
:for SAIC kind of in that order.
859
:And they need support in talent
management, recruiting, the, the
860
:downsides of those things, um, on,
you know, maybe moving from one
861
:kind of talent base to another, um,
that involves maybe retrenchments
862
:or maybe it's growing a sales team.
863
:There's other people that are going
to be better positioned than us.
864
:Tim Winkler: Yeah.
865
:And I think that's smart.
866
:You know, you kind of stay in your lane,
uh, on where you're most impactful,
867
:where you're going to add the most value.
868
:If there's something that pops up where
you can lend a hand, you know, it's
869
:almost like an, an as needed basis, but
it's not something that you set as the
870
:expectations going into a partnership.
871
:I think that's really smart.
872
:Yeah,
873
:Michael Hauser: there's, there's one
investment we're looking at right
874
:now, um, and you know, our enterprise
capabilities in corporate real
875
:estate and, um, enterprise security,
like chief risk officer, chief
876
:security officer type of things are
absolutely essential to that startup.
877
:Right.
878
:So that's part of the relationship
that we're developing there, but
879
:it's unique to that circumstance.
880
:Tim Winkler: That's great.
881
:Um, yeah.
882
:So I do want to, uh, make sure we
save some time for our final segment
883
:as we're coming up on the hour.
884
:But, uh, prior to that, my, my last
question for you, um, well, actually
885
:I had two questions real quick.
886
:What's the size of, of your kind
of like team, uh, in this kind
887
:of, yeah, the, the venture space?
888
:Interesting.
889
:Michael Hauser: The, the chief innovation
officer team, big round numbers,
890
:about 650 people, um, you know, we
leverage the entire enterprise as the
891
:arms and legs of our ventures team.
892
:So we don't have the full time
people on staff who are responsible
893
:for tech diligence or business
diligence elements, right?
894
:We don't have the full time folks
who run our ventures platform because
895
:our venture platform is that entire
go to market ecosystem we've built.
896
:Um, so the full time folks on our
Ventures team are three folks right now.
897
:Myself, we've got a principal on the East
Coast, a principal on the West Coast,
898
:Chris George, uh, and Katie Swanson.
899
:And, and, you know, really, it's the
dozens of other people in partnerships,
900
:products, and Ventures, and hundreds
of other people in the innovation
901
:factories and the CTO teams that
have the arms and legs down into our
902
:business groups that make us successful.
903
:Without that operating system.
904
:We're just a three person team, right?
905
:Checks, right?
906
:Right.
907
:And so it really is about that.
908
:And then, you know, the 20 some
odd thousand smart hands we've got
909
:at the company on programs every
day, bringing back these needs,
910
:implementing these technologies,
um, that really help it work.
911
:So, you know, that
operating system analogy.
912
:It's, it's becoming more and more
as we do more of this, a little
913
:bit more of a machine, you know,
we kind of just, we're getting to
914
:where we can just turn the crank.
915
:We've got infrastructure that
supports us, our MIT infrastructure.
916
:We've got processes and
procedures and tools, um, our
917
:own version of TTPs to go to war.
918
:Um, and it's, it's
really starting to move.
919
:So we're excited.
920
:Tim Winkler: Yeah, it's a great
little like flywheel visual, uh,
921
:what, what a company can expect when
they fall into your all is kind of.
922
:Yeah.
923
:All right, great.
924
:And then, so, yeah, this last question,
you know, where, where do you kind of
925
:stand with the future outlook on, let's
say defense, the defense tech ecosystem
926
:at large, or do you feel optimistic on,
you know, a positive change and like
927
:we're talking about moving quicker and
kind of breaking that narrative that,
928
:you know, working with, The government
is hard, slow and impossible at times.
929
:Michael Hauser: I really do.
930
:Right.
931
:We, we deal with a lot of investors.
932
:We work with a lot of startups.
933
:Um, we talk to a lot of
startups that are dual use.
934
:I hear the same things about
banks, healthcare, energy, right.
935
:Other highly regulated industries.
936
:These are not easy markets to compete in.
937
:Um, government is just a different set
of guidelines and rules and processes
938
:and procedures hard to compete in
a lot more acronyms that I think
939
:they're just different acronyms.
940
:Um, you know, we're doing some talking
to some companies that have some business
941
:and banking and man, I'm in Google
every minute of every conversation.
942
:They're just new.
943
:Yeah.
944
:Um, and so I'm super optimistic.
945
:Um, You know, there are a lot
of froth things maybe going on
946
:in that sec investing right now.
947
:It's one of the quote hotter segments
from a dollar value perspective in this
948
:high interest rate, um, compressed.
949
:Uh, and more intense
period of investing in VCs.
950
:So, you know, you've got these big
macroeconomic changes in VC markets
951
:combined with a heightened awareness
of national security priorities.
952
:I'm not surprised that there's
more investment activity going on.
953
:Um, but again, some of it little frothy,
we try to avoid that as best we can.
954
:Because we know a thing or three about
being in that SEC, but we're not just
955
:in that SEC, we're also in a host
of different civilian agencies, some
956
:of which like DHS, FBI, um, right,
they are national security related.
957
:There are national security related
parts, Department of Treasury.
958
:There are not that are much more like
banking, fintech, et cetera, right?
959
:There's all of the health focused
agencies, the VA, HHS, et cetera.
960
:Um, and then you've got all of
the other civilian agencies, um,
961
:department of interior is doing right.
962
:And so these are all customers of SAIC.
963
:We've got experts in every single
one of those businesses and markets
964
:in it and digital engineering.
965
:So there's a lot of opportunity
for startups across all of that.
966
:80 20 inch dual use versus bespoke for
NatSec tech from our perspective, right?
967
:Like we talked about, there are great
opportunities for future platform primes.
968
:There are great opportunities
for subcontract.
969
:And the one thing we're recognizing
from the government customer
970
:perspective is that the FAR says
full and open commercial first.
971
:So do that.
972
:And customers are getting more
comfortable with that and trading in these
973
:commercial technologies as part of that.
974
:And not all of it comes from.
975
:You know, the big tech companies you
read about the wall street journal every
976
:day, sometimes you got to get on pitch
book or crunch base or go to a pitch
977
:festival or whatever to go find them.
978
:And that's what we're doing to try to
help our customers along with looking at
979
:what DIU and AFWRX and the team at DHS
and the IRS that are trading in these
980
:earlier stage technologies and putting
those pilots to work like you talked
981
:about earlier, Tim, and trying to find
the best of that have gotten a couple
982
:of reps at the government contracting
gym and then bring them to scale.
983
:Yeah, we're super excited
about the potential.
984
:And we could talk about the
technology domains for hours
985
:because there's so many of them.
986
:We'll save that for a part two.
987
:Yeah, um, I'd have to micro machines the
conversation because when you get down
988
:into the specific, there are thousands.
989
:Tim Winkler: Yeah.
990
:Michael Hauser: Um, but if you're
digital engineering, or digital
991
:transformation, cloud, cyber,
AI, data, Love to talk to you.
992
:Tim Winkler: Yeah.
993
:Yeah.
994
:That's a great closing point.
995
:And, you know, I, I can tell you, you
know, I'm, I'm much more optimistic,
996
:you know, after this conversation,
I think it's just great to see the
997
:different outlets available to founders
that are looking for resources,
998
:looking for, you know, a, a channel,
some sort of an, an area to, uh, to
999
:integrate, to, to add value, to impact,
uh, such a large organization like.
:
00:55:14,875 --> 00:55:15,055
The U.
:
00:55:15,055 --> 00:55:15,195
S.
:
00:55:15,195 --> 00:55:15,635
government.
:
00:55:15,915 --> 00:55:20,815
So, um, I hope that this is one of those
episodes that, you know, it just brings
:
00:55:20,815 --> 00:55:25,735
one more idea to light or, you know, one
more opportunity through your all's gate.
:
00:55:25,775 --> 00:55:26,045
So.
:
00:55:26,505 --> 00:55:29,865
Um, thanks for the, uh, you know,
spending the time and spreading the
:
00:55:29,875 --> 00:55:32,075
conversation and building that awareness.
:
00:55:32,475 --> 00:55:35,695
Uh, I do want to close with
the, the five second scramble.
:
00:55:35,715 --> 00:55:39,945
So this is going to be a quick little
rapid fire Q and a, uh, some business,
:
00:55:39,965 --> 00:55:41,655
some personal, you ready to roll?
:
00:55:42,085 --> 00:55:42,835
Let's go do it.
:
00:55:43,095 --> 00:55:43,615
All right.
:
00:55:43,715 --> 00:55:48,725
So what is your favorite part
about the culture at SAIC?
:
00:55:49,380 --> 00:55:53,180
Michael Hauser: My favorite part
is that we are super collaborative.
:
00:55:53,610 --> 00:55:56,390
Um, I'm, I'm a starter
kind of personality.
:
00:55:56,420 --> 00:55:59,370
I like being on the front end of
things and building things and
:
00:55:59,430 --> 00:56:02,760
seeing other people lean into
an idea, bring up a new idea.
:
00:56:03,050 --> 00:56:04,740
People jump on that and make it happen.
:
00:56:04,900 --> 00:56:05,720
It's my favorite part.
:
00:56:06,790 --> 00:56:09,570
Tim Winkler: What would you say,
you know, what kind of founders
:
00:56:09,600 --> 00:56:14,630
kind of thrive when coming, coming
through the SAIC ventures portfolio?
:
00:56:15,300 --> 00:56:16,120
Michael Hauser: Passion for mission.
:
00:56:16,645 --> 00:56:20,055
Um, if you've got a passion for creating
mission outcomes with your tech and
:
00:56:20,055 --> 00:56:21,085
your product, we're the place for you.
:
00:56:22,285 --> 00:56:27,145
Tim Winkler: What would you say are
the top areas of, we'll keep it defense
:
00:56:27,265 --> 00:56:31,575
tech, uh, that you're most excited
for in the, in the next five years?
:
00:56:32,445 --> 00:56:33,855
So I'm actually most
:
00:56:33,855 --> 00:56:36,435
Michael Hauser: excited for some
boring stuff that isn't NETSEC.
:
00:56:37,075 --> 00:56:39,185
I'll get to the NETSEC stuff in a second.
:
00:56:39,625 --> 00:56:44,095
Um, the civilian agencies have not
been known as the paragon of digital
:
00:56:44,105 --> 00:56:50,225
transformation, and it's because I think
they just haven't been able to be exposed
:
00:56:50,235 --> 00:56:54,375
to the great things that are going on in
analogous industries and dual use like
:
00:56:54,435 --> 00:56:56,915
NatSec started doing 15, 20 years ago.
:
00:56:57,275 --> 00:56:57,385
Tim Winkler: And
:
00:56:57,665 --> 00:57:03,105
Michael Hauser: so I'm really excited
about the automation, AI enablement,
:
00:57:03,135 --> 00:57:05,075
business process optimization.
:
00:57:05,580 --> 00:57:10,720
Um, cloud enabled solutions for mission
opportunities that we can bring into
:
00:57:10,720 --> 00:57:15,230
civilian agencies that maybe just
haven't had the exposure to those
:
00:57:15,260 --> 00:57:17,290
technologies relative to NETSEC tech.
:
00:57:17,730 --> 00:57:21,010
And on the NETSEC side, the
thing I'm most excited by are the
:
00:57:21,010 --> 00:57:22,970
hardest mission problems, right?
:
00:57:23,010 --> 00:57:28,370
What can we do to be ready for the worst
possible scenarios in, in IndoPACOM?
:
00:57:28,410 --> 00:57:29,170
How do we.
:
00:57:29,630 --> 00:57:35,660
Protect and defend the nation
from emergent cyber and other
:
00:57:35,670 --> 00:57:37,020
digital risks and uncertainties.
:
00:57:37,060 --> 00:57:41,290
How do we leverage AI in the
right, mindful and ethical
:
00:57:41,290 --> 00:57:43,330
ways in that set context?
:
00:57:43,370 --> 00:57:46,775
Those are the You know, these are
at the edge of thinking, they're
:
00:57:46,805 --> 00:57:48,605
the hardest of hard problems.
:
00:57:49,185 --> 00:57:52,845
Um, and DARPA doesn't get to play
with all of them and they get to
:
00:57:52,845 --> 00:57:55,185
play with some of them and we're
working with them on those sometimes.
:
00:57:55,725 --> 00:58:01,375
Um, it's just really, really interesting
to be able to focus on some of these
:
00:58:01,405 --> 00:58:06,025
really hard problems and then see
how that technical solution can get
:
00:58:06,055 --> 00:58:10,225
reapplied again and again and again,
maybe even in very different contexts.
:
00:58:10,825 --> 00:58:14,245
And when we can make something work out at
the mission edge and in that set context.
:
00:58:14,875 --> 00:58:18,265
And bring it to a civilian agency
to, I just, those things blow
:
00:58:18,265 --> 00:58:19,455
my mind and they're super cool.
:
00:58:19,725 --> 00:58:20,865
Tim Winkler: Yeah, I love it.
:
00:58:21,605 --> 00:58:25,975
What resources or sources do you
kind of tap into to stay current
:
00:58:25,985 --> 00:58:31,275
on trends that are happening in the
overarching, you know, deep tech defense
:
00:58:31,315 --> 00:58:32,925
techs of tech kind of environments?
:
00:58:33,635 --> 00:58:34,055
People,
:
00:58:34,145 --> 00:58:36,545
Michael Hauser: um, you know,
the venture is a people business.
:
00:58:37,265 --> 00:58:42,485
Yeah, of course, I've got subscription
services that we buy, and there are
:
00:58:42,485 --> 00:58:47,335
a host of blogs and podcasts, and
you can get overwhelmed with data,
:
00:58:47,365 --> 00:58:50,645
AI tools to integrate and synthesize
it for you to do market studies.
:
00:58:50,645 --> 00:58:51,765
I mean, the list goes on and on.
:
00:58:52,190 --> 00:58:53,870
At the end of the day,
this is a people business.
:
00:58:53,930 --> 00:58:56,945
It's about relationships
with other investors and
:
00:58:56,945 --> 00:58:57,539
Tim Winkler: founders
:
00:58:57,540 --> 00:58:58,230
Michael Hauser: to learn those things.
:
00:58:59,880 --> 00:59:00,080
Tim Winkler: Yeah.
:
00:59:00,080 --> 00:59:04,230
I think I just got about 20 emails in
the, in the last 10 seconds about some
:
00:59:04,230 --> 00:59:06,350
sort of a newsfeed of what's happening.
:
00:59:06,400 --> 00:59:07,860
It's almost information overload.
:
00:59:07,900 --> 00:59:12,090
Sometimes you really have to, you
have to mute a lot of these channels
:
00:59:12,090 --> 00:59:14,960
and have a couple of trusted
sources that you connect with.
:
00:59:16,890 --> 00:59:17,150
All right.
:
00:59:17,150 --> 00:59:20,700
What's a charity or corporate
philanthropy that's near and dear to you?
:
00:59:21,445 --> 00:59:21,985
Yeah, so
:
00:59:21,985 --> 00:59:25,535
Michael Hauser: for me, um,
I am a huge baseball fan.
:
00:59:26,195 --> 00:59:29,675
Um, and so, you know, given,
given time to youth baseball
:
00:59:29,995 --> 00:59:31,675
has been a huge part of my life.
:
00:59:32,115 --> 00:59:35,545
Um, you know, even before my son
started playing, um, I've been a
:
00:59:35,555 --> 00:59:37,045
coach, I've been a contributor.
:
00:59:37,470 --> 00:59:41,430
Um, you know, that that's kind of probably
the thing that's closest to me right now.
:
00:59:41,840 --> 00:59:45,680
Um, youth sports is something that,
you know, a lot of people can't afford.
:
00:59:46,220 --> 00:59:50,520
Um, it's not inexpensive even, you know,
for bat and ball sports like baseball.
:
00:59:51,090 --> 00:59:57,180
Um, and so, you know, that being able to
help folks be able to access those, um,
:
00:59:57,680 --> 01:00:03,370
Enablers to kind of learning life skills
and, and people skills, and maybe you can
:
01:00:03,370 --> 01:00:06,490
excel as an athlete too, but you know,
most people don't make it to the pros.
:
01:00:06,490 --> 01:00:09,200
You get a whole lot more out of it
in other dimensions of your life.
:
01:00:09,230 --> 01:00:09,920
That that's kind of
:
01:00:09,920 --> 01:00:11,820
Tim Winkler: I love that.
:
01:00:11,820 --> 01:00:12,190
Yeah.
:
01:00:12,290 --> 01:00:12,520
Yeah.
:
01:00:12,520 --> 01:00:15,570
The access to, to getting
involved with sports and yeah.
:
01:00:15,995 --> 01:00:20,275
Having that kind of team camaraderie
is so, so vital, uh, to, to the youth.
:
01:00:20,275 --> 01:00:23,165
So, uh, really, really
support that as well.
:
01:00:23,645 --> 01:00:26,345
Uh, what's your favorite
app on your phone?
:
01:00:27,275 --> 01:00:29,845
Michael Hauser: My favorite app right now.
:
01:00:29,915 --> 01:00:34,675
Um, and it has been for a long time is
a newsfeed aggregator called Paliber.
:
01:00:35,255 --> 01:00:38,915
Um, and it just takes, you know, you
can kind of set up your own channels,
:
01:00:39,275 --> 01:00:43,275
um, you know, and, and bring in this
kind of multi feed multi source,
:
01:00:43,285 --> 01:00:47,515
uh, Um, data aggregation and, and
click on what you want, read it.
:
01:00:47,855 --> 01:00:50,925
So I use that for news and blogs
and, and those kinds of things.
:
01:00:51,465 --> 01:00:52,485
What's it called again?
:
01:00:52,485 --> 01:00:52,995
How do you spell it?
:
01:00:53,745 --> 01:01:00,605
It's a, it's an old school RSS
feeds, it's P L A B R E and it's,
:
01:01:00,735 --> 01:01:02,805
it's an old school RSS feed tool.
:
01:01:02,805 --> 01:01:04,465
That's kind of just grown a bunch of legs.
:
01:01:05,085 --> 01:01:10,715
Um, and it's just, I use it as my, my,
my, uh, news and blog and RSS integrator.
:
01:01:10,865 --> 01:01:11,305
Tim Winkler: Cool.
:
01:01:11,405 --> 01:01:11,555
Yeah.
:
01:01:11,555 --> 01:01:12,465
I'll have to check that out.
:
01:01:13,465 --> 01:01:17,575
Um, if you could have dinner with
any tech icon, current or past,
:
01:01:17,975 --> 01:01:19,515
who would it be with and why?
:
01:01:20,415 --> 01:01:24,195
Michael Hauser: So for me, um, I
would love to spend some time with
:
01:01:24,195 --> 01:01:27,545
Alexander Graham Bell and I'm going
way in the way, way back machine.
:
01:01:28,005 --> 01:01:33,545
Um, Because he was an integrator that
had to overcome technology roadblocks,
:
01:01:33,545 --> 01:01:40,115
but not so arguably he had to overcome,
um, business model issues that were
:
01:01:40,115 --> 01:01:43,495
even more intractable than figuring
out how to move voice over copper.
:
01:01:44,015 --> 01:01:48,105
Um, and I don't think he gets enough
credit for the business he built in
:
01:01:48,105 --> 01:01:50,045
addition to the technology he created.
:
01:01:50,580 --> 01:01:55,770
Um, now it turned into a regulated
monopoly and all that other stuff
:
01:01:55,770 --> 01:02:00,150
that, you know, has happened in other
industries since those times to, um,
:
01:02:00,230 --> 01:02:02,910
I'd love to learn about the business
side of Alexander Graham Bell.
:
01:02:02,920 --> 01:02:05,520
I'm a, I'm a business model kind of guy.
:
01:02:05,550 --> 01:02:06,750
I'm a growth junkie.
:
01:02:07,170 --> 01:02:11,580
Uh, and I think he'd be a great
historical figure to kind of learn from,
:
01:02:11,640 --> 01:02:15,950
um, in this day and age of different
networks and modes of communication.
:
01:02:16,290 --> 01:02:16,690
Tim Winkler: Yeah.
:
01:02:16,920 --> 01:02:17,310
Yeah.
:
01:02:17,380 --> 01:02:18,540
Not, not just a.
:
01:02:19,785 --> 01:02:25,935
But a great teacher, you know, so, uh, two
more and we're, we're going to wrap it.
:
01:02:25,955 --> 01:02:29,235
So what is the worst fashion
trend that you've ever followed?
:
01:02:30,395 --> 01:02:31,435
Michael Hauser: Oh, gosh.
:
01:02:31,835 --> 01:02:38,025
Uh, so I would have to say in middle
school, um, everybody probably remembers
:
01:02:38,045 --> 01:02:39,855
Andre Agassi, the tennis player.
:
01:02:39,995 --> 01:02:40,425
Oh yeah.
:
01:02:40,725 --> 01:02:46,985
Um, and so I went after the
frosted tips, mullet ish haircut.
:
01:02:48,260 --> 01:02:50,460
And you know, you can talk about
the time frame here, right?
:
01:02:50,460 --> 01:02:52,000
This is late eighties, early nineties.
:
01:02:52,690 --> 01:02:56,930
Um, there are some pretty amazing, I'm
shaking my head from side to side, not
:
01:02:56,930 --> 01:02:58,660
up and down photos of me from back then.
:
01:02:58,960 --> 01:02:59,460
Tim Winkler: Yeah.
:
01:02:59,520 --> 01:03:02,450
We'll get those as a, as the
headshot for the, uh, podcast.
:
01:03:02,450 --> 01:03:04,100
Yeah.
:
01:03:04,100 --> 01:03:04,310
And
:
01:03:04,310 --> 01:03:04,740
Michael Hauser: I'm going to need
:
01:03:04,750 --> 01:03:04,990
Tim Winkler: like
:
01:03:04,990 --> 01:03:10,230
Michael Hauser: my, my day glow
wristbands with the Adidas, uh,
:
01:03:10,230 --> 01:03:12,070
with the puffy print t shirt on.
:
01:03:12,070 --> 01:03:12,820
Right, right.
:
01:03:12,890 --> 01:03:13,200
Tim Winkler: Yeah.
:
01:03:13,895 --> 01:03:14,245
Really?
:
01:03:14,775 --> 01:03:15,985
I starter jacket.
:
01:03:16,135 --> 01:03:16,435
Yeah.
:
01:03:16,435 --> 01:03:21,025
Anybody that doesn't, isn't familiar
with frosted tips on this podcast
:
01:03:21,115 --> 01:03:25,505
and yeah, you're clearly, uh, you're
clearly not in the same era as
:
01:03:25,935 --> 01:03:27,385
many of the guests that we have on.
:
01:03:27,385 --> 01:03:29,765
It's, it's, it's a, a classic era.
:
01:03:29,815 --> 01:03:30,095
So.
:
01:03:30,475 --> 01:03:33,335
I don't ever want us to have
regrets about the frosted tip era.
:
01:03:35,605 --> 01:03:36,835
Classic, but wow.
:
01:03:36,835 --> 01:03:38,475
I'm going to have to figure
out a way to work that in.
:
01:03:38,475 --> 01:03:40,345
Michael Hauser: All
:
01:03:40,905 --> 01:03:41,035
Tim Winkler: right.
:
01:03:41,055 --> 01:03:41,835
Last one, last one.
:
01:03:41,835 --> 01:03:44,255
What was your dream job as a kid?
:
01:03:44,850 --> 01:03:46,380
Michael Hauser: Uh, yeah, that's easy.
:
01:03:46,440 --> 01:03:48,870
Uh, being a catcher for
the New York Yankees.
:
01:03:49,050 --> 01:03:53,950
Oh, and then as I got older, uh, I
had this dream of being a bullpen
:
01:03:53,990 --> 01:03:55,360
catcher for the New York Yankees.
:
01:03:55,360 --> 01:03:57,810
I was like, don't have to
be out there every day.
:
01:03:57,820 --> 01:04:01,450
Get to catch all these amazing pitchers
for like a few minutes at a time.
:
01:04:01,860 --> 01:04:03,350
Um, then I found out what it paid.
:
01:04:04,190 --> 01:04:10,790
Um, but, uh, yeah, being a catcher in the
starting nine for the New York Yankees
:
01:04:10,820 --> 01:04:12,380
was a dream for a very, very long time.
:
01:04:12,560 --> 01:04:13,280
Did you play,
:
01:04:13,490 --> 01:04:13,640
Tim Winkler: did
:
01:04:13,640 --> 01:04:14,200
Michael Hauser: you play a bit as a
:
01:04:14,200 --> 01:04:14,430
Tim Winkler: kid?
:
01:04:14,480 --> 01:04:14,600
Yeah.
:
01:04:14,870 --> 01:04:16,350
Wait all the way up into
college a little bit.
:
01:04:16,420 --> 01:04:17,900
Um, so yeah.
:
01:04:18,470 --> 01:04:19,020
Very cool.
:
01:04:19,070 --> 01:04:19,240
Yeah.
:
01:04:19,240 --> 01:04:19,860
That's an epic trip.
:
01:04:19,920 --> 01:04:21,600
That's an epic dream job as a kid.
:
01:04:22,180 --> 01:04:25,060
Um, all right, well,
that's, that is a wrap Mike.
:
01:04:25,060 --> 01:04:27,620
Thank you so much for
spending time with us and.
:
01:04:27,875 --> 01:04:32,185
You know, we're, we're always
excited for the future founders and
:
01:04:32,185 --> 01:04:36,095
startups that are tuning in or, you
know, partnering with you all to,
:
01:04:36,125 --> 01:04:39,825
to drive this kind of innovation to,
to really modernize our government.
:
01:04:39,845 --> 01:04:43,555
So we're rooting for you all, uh,
excited to see how, you know, your,
:
01:04:43,565 --> 01:04:48,995
your, your program, the, the venture
side of SCIC evolves over the years.
:
01:04:49,154 --> 01:04:49,705
And, uh.
:
01:04:50,060 --> 01:04:52,610
Thank you for hanging us with the,
uh, hanging with us on the pod.
:
01:04:53,310 --> 01:04:54,010
Michael Hauser: Yeah, definitely.
:
01:04:54,020 --> 01:04:55,490
Thank you for the opportunity, Tim.
:
01:04:55,580 --> 01:04:59,500
Uh, and anybody out there, uh,
in your community got questions,
:
01:04:59,500 --> 01:05:02,640
want to connect, uh, reach out
LinkedIn's great way to do it.
:
01:05:02,690 --> 01:05:04,730
So I guess I'll plug
that app on my phone too.
:
01:05:05,730 --> 01:05:09,200
And, uh, we'll grow this thing
together with all of your support.
:
01:05:09,200 --> 01:05:10,300
So thanks for being a
part of the ecosystem.
:
01:05:11,029 --> 01:05:11,630
Tim Winkler: Absolutely.
:
01:05:11,630 --> 01:05:15,510
And we will be sharing this on
LinkedIn and sounds like you and
:
01:05:15,510 --> 01:05:17,620
I have to go grab a blizzard.
:
01:05:17,640 --> 01:05:19,100
I'm I'm going Reese's peanut butter cup.
:
01:05:19,100 --> 01:05:20,140
What are you, what are you going with?
:
01:05:20,820 --> 01:05:21,230
Michael Hauser: Yeah.
:
01:05:21,230 --> 01:05:24,590
So, I'm gonna have to ask my wife for
for which flavor I should go with.
:
01:05:25,160 --> 01:05:25,250
Okay.
:
01:05:25,350 --> 01:05:29,460
I'm growing up in western Nebraska
with grandma Nancy, her mom.
:
01:05:29,815 --> 01:05:34,005
Um, our son's grandmother,
you know, he had a great day.
:
01:05:34,015 --> 01:05:34,925
He had a terrible day.
:
01:05:35,275 --> 01:05:38,085
It was go celebrate or let me
help you think through it at
:
01:05:38,085 --> 01:05:39,154
Dairy Queen with a blizzard.
:
01:05:39,285 --> 01:05:39,535
Yeah.
:
01:05:39,595 --> 01:05:42,885
So I'll leave the choosing of
the Dairy Queen treat to Jen
:
01:05:43,475 --> 01:05:44,495
because she is a connoisseur.
:
01:05:45,685 --> 01:05:47,775
As long as it's served upside down, right?
:
01:05:48,105 --> 01:05:49,725
You got to show it upside down.
:
01:05:49,725 --> 01:05:50,904
That proves how thick it is.
:
01:05:50,904 --> 01:05:53,356
That's part of the showmanship of
:
01:05:53,356 --> 01:05:53,760
Tim Winkler: the blizzard.
:
01:05:53,910 --> 01:05:54,700
It's iconic.
:
01:05:54,700 --> 01:05:57,460
We'll, we'll, we'll have much
more to wrap on, on, on a part
:
01:05:57,470 --> 01:05:59,050
two on, on desserts and such.
:
01:05:59,050 --> 01:06:00,770
But again, thanks for joining us, Mike.
:
01:06:00,770 --> 01:06:01,480
This was a blast.
:
01:06:03,100 --> 01:06:03,330
Thanks
:
01:06:03,480 --> 01:06:03,510
Michael Hauser: Tim.