Creating an Ecosystem of Sustained Innovation at Scale

Creating an ecosystem of sustained innovation at scale is a major focus of what we try to accomplish through the companies we buy and build at Endeavor. Under the broad umbrella of our U.S. National Security, the industry sectors where we invest: aerospace, defense, and government with subsector focus on cybersecurity, machine learning, autonomy, and space systems and solutions, all converge at multiple layers of technical functionality. Together, these sectors represent a multifaceted and integrated approach to addressing the security challenges we now face as a Nation. Today’s international geopolitical situation suggests that the world is on the precipice of becoming even less secure and stable. So, we at Endeavor focus our energy on building platform companies that contribute to creating a more robust, resilient, and dynamic Defense and Intelligence Community ecosystem. Through the companies we build, we seek to infuse this ecosystem with enhanced technologies, capabilities, and leadership at all levels.

Taken together, the technological capabilities provided by each sector within the broader ecosystem serve a duality of purposes, acting both as a protective “shield” as well as a strategic force multiplier. They provide asymmetric advantages against adversaries, uphold information dominance, and enable precise actions and responses while reducing operational risks. In today's complex threat landscape, overlooking any piece of the ecosystem could enable vulnerabilities that may jeopardize National security.

It's important to note that while innovation can entail a technological leap forward, it can also entail an innovatively architected business model. In fact, many of today’s “game changing” innovations are, in fact, those that involve business model or process-based innovations. So, how do we fully explore new ways to make technological advances and innovative business models more applicable to broader customer sets? We look for creative entrepreneurs that have inculcated a culture of innovation in the companies they lead, and we work closely in partnership with them to continue build the company (please see our blog on how we view partnerships).

At Endeavor, we think about innovation at scale as the ability to consistently generate and implement new ideas, processes, products, or services across the entire breadth of both Endeavor operations and that of our portfolio companies. It's about cultivating, ensuring, and applying innovation not just in discrete areas or individual company applications, but systematically across all companies and teams within our broader ecosystem. We believe some key aspects of achieving innovation at scale are embedded within our model: (a) strategic alignment, (b) building a culture that encourages experimentation and where innovative thinking is rewarded and failure is viewed as a learning opportunity, and (c) allocating financial, human, and intellectual resources so as to foster innovative thinking, to include investing in R&D as well as in the talent capable of developing and applying them.

Finally, we think of innovation at scale not as static but highly dynamic. As such, it’s both a mindset and process that requires continuous improvement and adaptation to constantly seek new ways to enhance capabilities to stay ahead as technologies and markets continue to evolve. Finally, sustained innovation across these sectors generates tremendous value in keeping America secure and technologically superior. By fortifying these sectors in unison rather than in an ad-hoc, decoupled manner, the Nation gains robust, resilient, and mutually reinforcing layers of security. The entire focus at Endeavor is to enhance our Nation’s national security posture.