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C[X]O Spotlight - Jeff McCoy

8/11/2024

C[X]O SPOTLIGHT — JEFF MCCOY

Jeff McCoy is the Co-Founder and CTO of Defense Unicorns, a pioneering software startup that delivers open-source software and AI capabilities for the national security industry. Ansa co-led a $35 million Series A into Defense Unicorns and has worked closely with the team ever since. As a technologist, Jeff has consistently driven innovation within the defense sector, co-founding Kessel Run, DDS Rogue Squadron, SpaceCAMP, and Platform One. From experimenting with technology as a child—once blowing up his dad’s laptop—to spearheading major advancements in the US government’s software stack, Jeff's journey reflects a deep commitment to enhancing national security through technology.

What’s the best interview question in your toolbox?

The best interview question in my toolbox is simple yet revealing: What drives you to Defense Unicorns? We’re not your typical defense contractor; we’re a startup with a unique brand and a strong stance on open-source and mission-driven work. So, when I ask this question, I'm looking to see if a candidate has taken the time to understand who we are, what we stand for, and if they resonate with our values. It’s not just about technical skills or brilliance—it’s about alignment. We need people who can bring something meaningful to our team, who truly get what we’re about, and who can integrate into the culture we’ve built. The business is bigger than just me or Rob; it’s about the collective energy and ethos of the team.

Because we’re so unconventional in the defense space, it’s crucial that candidates not only understand us but also challenge the stereotypes associated with defense work. I spent the first seven years of my military service doing humanitarian work, so I’m acutely aware of the prejudices that exist. It’s important to break down those barriers and see if someone can align with our broader beliefs about government service and what it means to support the military. This question helps us ensure that the people we bring on board are the right fit, not just in terms of skillset, but in how they align with our mission and culture.

What don’t you know that you wish you knew? 

One of the biggest uncertainties Rob and I discuss is how our partnership and company will evolve as we continue to scale. We've been working together since 2018, navigating the ups and downs, and figuring out how to leverage our strengths and cover each other's weaknesses. But as our team grows, from just a few people to almost 200 now, and potentially 500 or even 1,000 in the future, I wonder how we’ll maintain that close-knit bond and the unique culture we've built. It’s one thing to manage when everyone knows each other and shares the same vision, but how do we keep that spirit alive if our company feels more like a large corporation than the scrappy startup we started?

Our culture is anchored in the freedom and values of open-source software, and that’s what attracts exceptional talent—even those who never saw themselves working in defense tech. The challenge will be preserving that culture, that "vibe," as we bring in more people and grow into a larger entity. It’s not just about hiring the right talent; it’s about maintaining the tight integration between our values and our work, even as we take on more significant and complex projects. The fear is that as we get bigger, we might lose that special dynamic that make us who we are, and that’s something I’m constantly thinking about.

What does it mean to donate your core product to an open source foundation? What are some potential implications to your business, and what advice would you give to founders evaluating a similar decision?  

Donating a project to an open-source foundation is one of the most meaningful contributions a company can make. When we first started Defense Unicorns, I told Rob that one of my personal goals was to donate a project to a foundation. It’s about more than just giving away intellectual property; it’s about building trust and ensuring that the developer community knows we’re committed to open-source in the deepest way possible. Foundations cement the trust of open source by protecting against the corporate rug pulls that happen when companies re-license or pivot away from their open-source roots. By donating our projects, we provide a powerful assurance to our customers that we’re not just paying lip service to open-source. We’re actively contributing to the community and safeguarding their long-term interests.

For government programs that span decades, this trust is crucial. They need to know that the new technology they’re adopting and investing in will remain viable, regardless of whether the original startup survives. By donating to a foundation, we’re telling our government partners, "Your projects will live on with or without us." It’s not about doubting our longevity but about putting our customers first and giving them confidence that their critical programs are secure. This approach isn’t for everyone; it’s a careful path that requires a deep understanding of your business model. But for us, it works, and it reinforces the values we stand by.

What one piece of advice would you give someone starting a National Security focused company?

If you're starting a National Security-focused company, my key piece of advice is to go into it with your eyes wide open about the risks, especially if you're considering an open-source approach. The reality is that in this space, small organizations face significant challenges. You might create something groundbreaking, but if a larger player with more resources picks it up and runs with it, you could quickly lose your competitive edge. This is the risk we faced when we started Defense Unicorns, but we had the advantage of some name recognition and a track record in the industry. If you’re unknown or don’t have that same level of credibility, the journey will be much tougher.

For those operating without a military background, one strategy I’ve come to appreciate is the importance of building a compelling product privately before releasing it as open source. This gives you time to gain traction and create some distance between you and potential competitors before going public. When I first started, I didn’t fully understand this approach; I thought keeping a project private went against the spirit of open source. But I’ve learned that timing is crucial. If you release too early, you risk someone else taking your work, accelerating it, and hitting the market before you do. So, if you’re starting without the backing of a well-known name or without a founding team that has a strong DoD reputation, focus on building something truly impressive before unveiling it to the world. This patience can make all the difference in securing your position and success in the market.

What are you looking most forward to - personally and professionally - into the back half of the year?

Building a company is all-consuming. And while I love what we do, I also want to make sure I strike the right balance between work and family.  Professionally, I’m excited about the investments we’re making beyond our core product, UDS. We’ve seen a lot of growth, and now we’re exploring new areas and adjacent possibilities within the business. It’s too early to share specifics publicly, but I’m fascinated by the potential of what we’re venturing into and I know you are too. I believe we’ll be moving beyond the software platforms we have today, and though it’s not without risk, it’s an exciting step forward for our mission and the future of the company.

- Jeff McCoy & Marco DeMeireles

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