What AFWERX Actually Does: Core Functions

AFWERX's operations are multifaceted and can be understood through its primary divisions, each with a distinct focus. These divisions represent the core "services" that AFWERX provides to both the military and the commercial sector.

## 1. AFVentures: The Investment Engine

This is arguably the most well-known component of AFWERX. AFVentures functions like a strategic venture capital firm for the Department of the Air Force. Its goal is to identify and fund early-stage commercial technologies that have dual-use potential?meaning they have both a viable commercial market and a potential application for the Air Force or Space Force.

• Primary Tool: The main mechanism used by AFVentures is the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program. AFWERX revolutionized this process with its Open Topic approach. Instead of the government issuing highly specific and narrow requirements, the Open Topic allows companies to propose any technology solution that could potentially benefit the DAF. This widens the aperture for innovation significantly.
• The Process:
  • Phase I: Companies submit proposals. If selected, they receive a short-term contract (typically $50,000 - $75,000) to conduct feasibility studies and, crucially, to find a specific end-user (a "customer") within the Air Force or Space Force.
  • Phase II: If the Phase I is successful and a military customer is identified, the company can compete for a more substantial Phase II contract (often up to $1.25 million) to develop a prototype.
  • Phase III: This is the ultimate goal, representing the transition of the technology into a formal government acquisition program or commercial product, using non-SBIR government or private funding. AFWERX helps facilitate this transition.

## 2. Spark: Cultivating Internal Innovation

While AFVentures looks outside the DAF for innovation, Spark looks inward. Spark is a grassroots movement that empowers Airmen and Guardians at all levels to identify problems in their daily work and develop innovative solutions.

• Spark Cells: These are collaborative hubs located at Air Force and Space Force bases worldwide. They provide Airmen and Guardians with resources, mentorship, and a direct line to the broader AFWERX network to get their ideas funded and implemented.
• Services: Spark provides tools for problem-sourcing, runs innovation challenges and hackathons, and connects military "intrapreneurs" with industry and academic partners to bring their ideas to life. It's about empowering the warfighter on the front lines to fix their own problems.

## 3. Prime: Accelerating Emerging Markets

The AFWERX Prime division is focused on stimulating and accelerating nascent, commercially viable technology markets that are critical to national security. Rather than just being a customer, the DAF acts as an early adopter and partner to help these new markets take off.

• Flagship Example: The most prominent Prime program is Agility Prime. This program is focused on the electric Vertical Takeoff and Landing (eVTOL) aircraft market, often called "flying cars." By offering a clear path for testing, certification, and potential procurement, Agility Prime provides a massive incentive for commercial companies to develop these technologies, which have clear military applications for logistics, personnel transport, and medical evacuation.

## 4. SpaceWERX: The Space Force Innovation Arm

Launched in 2020 to align with the creation of the U.S. Space Force, SpaceWERX is the innovation arm specifically focused on the space domain. It operates under the AFWERX umbrella but concentrates on technologies from, for, and of space. It utilizes the same successful models as AFWERX?including SBIR/STTR Open Topics, challenges, and partnerships?to address the unique needs of the Space Force.

Products and Services Offered

As a government entity, AFWERX doesn't offer "products" for sale. Instead, its offerings are programs, funding opportunities, and collaborative platforms.

• For Companies (Startups & Small Businesses):

  • Non-Dilutive Funding: Access to capital through SBIR/STTR contracts without giving up equity.
  • Streamlined Contracting: A faster, more accessible on-ramp to working with the Department of Defense.
  • Access to End-Users: Direct connection to Airmen and Guardians who can provide feedback and become customers for their technology.
  • Market Validation: A contract with the DAF is a powerful signal that validates a company's technology and can help it attract further private investment.

• For the Department of the Air Force (Airmen & Guardians):

  • Problem Solving: A direct avenue to find and fund solutions for operational challenges.
  • Access to Technology: Exposure to cutting-edge commercial technology that would otherwise be inaccessible through traditional channels.
  • Innovation Training: Resources and support for developing an innovative mindset and skill set.